How bad is it at Media General? BAD. Here's a memo I received this morning from a friend in Richmond...click on photo to enlarge. What the memo, from the President of Media General says is:
Feb. 18, 2009
Dear Fellow Employees,
So far in 2009, economic and corporate earnings reports have been worse than expected. Consumers and businesses continue to reduce spending, which is causing the advertising market to weaken further. The contracting economy and uncertain outlook require us to be even more cautious than we already have been regarding our revenue expectations for 2009. Despite aggressive sales initiatives and significant cost reductions, I regret to report that we need to build in additional expense savings to offset the revenue shortfalls our divisions anticipate.
During the remainder of this year, each of us will take a mandatory 10 days off according to the schedule below, and our pay will be reduced commensurately. The company is also asking its unionized and other employees under contract to agree to participate in furloughs in lieu of layoffs. Furlough days do not have to be taken consecutively, but they must be taken one full day at a time. The days can be taken effective immediately and must be scheduled with your supervisor to minimize business disruptions. Furlough days can be accelerated as long as you have approval. On furlough days, you should not participate in work-related activities.
Furlough schedule:
4 days between today and March 29, 2009
3 days between March 30 and June 28, 2009
3 days between June 29 and September 27, 2009
When non-exempt employees take a furlough day, the reduction for that day's pay will be made at that time. For exempt employees, furlough pay reductions, amounting to the equivalent of 10 days spread over the first three quarters of 2009, will be automatically deducted from their paychecks. The reduction will be spread to equal four days in March and six days between March 30 and September 27. A Q & A regarding this program will be posted to theMeganet today, and your HR representative is also available to answer questions.
I understand and regret the financial hardship this will cause. In recognition of the particular hardship of the four days that must be taken in the relatively short period between now and March 29, 2009, we are instituting a program whereby employees may request an advance on all or part of their pay reduction for that period. Any advances will be repaid to the company over the remaining nine months of 2009. Employees seeking this option should contact their HR representative to fill out the appropriate forms, which will include the equivalent of an IOU to the company.
These are unprecedented times. Your loyalty and hard work are very much appreciated as we work together to weather the economic turmoil in our country and our industry. We believe the prudence of our actions now will help us navigate to more prosperous times.
Yours sincerely,
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