Major employer asks for furloughs instead of more layoffs
January 20, 2009 by Fred HosierPosted in: In this week's e-newsletter, Latest News & Views, unusual programs
If your company gave employees a choice which would they choose: Take a one-week, unpaid furlough or take a chance on getting laid off?
Gannett Co. Inc., the largest newspaper publisher in the U.S., is requiring its workers to take a week off without pay before the end of the first quarter.
The company had already cut thousands of employees from its payroll to deal with a severe decline in advertising revenue.
It employs about 40,000 workers. Unions have said they support the company’s decision, but it’s up to each local to decide whether to OK the furlough program.
Gannett expects its 2008 revenue to be down about 8% from 2007.
It owns USA Today, the largest U.S. newspaper by circulation, 85 daily newspapers and 23 TV stations.
January 23rd, 2009 at 10:29 am
If I thought it would keep myself or others from being layed off…absolutely. A week without pay sure beats losing a paycheck, benefits, etc, to say nothing of the employer maintaining its skilled and knowledgeable workforce. From a personal perspective, I’d take a week off with or without pay if I could manage it!
January 23rd, 2009 at 11:01 am
Done and done, I fully agree with Jeanette. I’d have no problem taking a week without pay if it meant not losing my job altogether. Granted I don’t have a family to support, just me, so financially I wouldn’t take that big of a hit.
January 23rd, 2009 at 11:13 am
If taking such a furlough would help to keep myself and co-workers on the job … it’s a great idea.
Saving jobs in the long run is worth the “pain” of a week without pay. It’s a small sacrifice in the scheme of things. I’d rather make that sacrifice any day than face the unemployment line!
January 23rd, 2009 at 12:40 pm
We recently had a 5% decrease for all salaried employees. It was a bad idea, even though the economy is not doing too well, there are still jobs out there. We’ve lost at least 5 top level managers. It’s very discouraging. I would’ve totally voted for the week off without pay instead of the pay cut.
January 26th, 2009 at 1:04 pm
No doubt…If myself and coworkers could keep our jobs by taking a week unpaid leave, yes. My furstration is when we are asked to do this and make small sacrifices for the company and the top executives still continue to receive their pay plus their hefty bonuses. Looks like they could make some sacrifices as well.
January 26th, 2009 at 2:20 pm
We are also trying to be creative, and keep as many of our employees as possible.
In order to keep our company going, we took an across the board pay reduction of 20%. To make it “feel better” to the employees, the hours worked were also reduced, so we are no longer open on Fridays “20% less of the workweek”. To help out the staff and loss of pay, we enrolled in the unemployment Shared Work program, and now everyone is receiving 20% of their total weekly unemployment benefits.
It doesn’t fully compensate the employees, but it sure does help!
January 29th, 2009 at 10:40 am
The last company I worked for did this, and ended up doing 1 week a month. It was a manufacturing facility and by the end of the year, after all of us employees hung on for the company and exhausted all of our personal savings, the company closed for good. No thank you…lay me off please and let me move on.
February 13th, 2009 at 2:21 pm
We just took an across-the-board 7% pay cut, including the CEO. I think most people would rather “share the pain” than see a lot of layoffs. Sue, (wow! 20% – that hurts. Still most likely better than a lay off.) I hadn’t heard of being able to collect a percentage of unemployment benefits due to being closed one day a week – not sure that is available in California. (Guess everyone knows what shape we’re in!) Sandra, if you had an unpaid week off, that would amount to a pay cut of around 25% for the month, so it’s still a pay cut. But, if it were only a one time thing, that would make a difference. Jonny, a similar thing happened to my husband – the company didn’t cut pay or furlough people, but it was obvious they were failing. Loyalty, though, wasn’t rewarded. When the company knew the feds would step in, they indicated a few employees would be left to work with the feds while completing the closing – that didn’t happen – instead, the top guys bailed with their pay and vacation pay and my husband left without his last paycheck. We finally got that seven months later (never got the vacation pay.) Not fun! But, now that you’ve had that experience, if you see it happening again, you can be proactive and have something else lined up. Good luck to al of us!
February 19th, 2009 at 10:08 am
Judy, it has been available in California since the early 80’s, but not widely publicized. Called Workshare. You need to contact the EDD and tell them what you plans are, who would be involved, etc. Of course, there are limitations based on pay and it would not work for exempts, but it’s worth a shot.