McClatchy CEO Gary Pruitt told employees in an e-mail Monday that “I’m happy to share some good news with all of you today. Beginning in 2010, we will lift the companywide wage freeze.”
McClatchy froze salaries in August 2008 and over the next 14 months instituted furloughs and layoffs companywide, including two dozen more announced in Miami just last week.
“Over the last several months,” Pruitt wrote, “McClatchy’s earnings reports have shown improving trends. … Still, we are suffering ongoing revenue declines and we must continue to carefully manage our expenses.
“It’s difficult to forecast exactly what 2010 may bring and what additional expense cuts may be necessary. What I can tell you is that we’d like to reward our employees for helping us manage through these challenging times by lifting the wage freeze.”
The various McClatchy newspapers will provide raises at different times and amounts “based upon the financial performance and challenges at each individual paper,” he said, adding that local management would have further information.
Here’s the text of the new memo:
DATE: Dec. 7, 2009
TO: All McClatchy Employees
FROM: Gary Pruitt
SUBJECT: Wage Freeze
I’m happy to share some good news with all of you today. Beginning in 2010, we will lift the companywide wage freeze.
There may be some differences in the timing of the reinstatement of merit increases at the various McClatchy papers, based upon the financial performance and challenges at each individual paper. More information will follow from your publisher and local management about the timing, but everyone will be treated fairly within his or her newspaper. In most cases, salary review dates will be adjusted forward by the number of months the wage freeze was extended beyond September 2009. For those employees represented by a collective bargaining agreement, merit increases are subject to the terms of the agreement and will be reviewed with your union leadership.
I want to spend a moment explaining this decision to all of you. I understand that there are many mixed messages about the state of the industry and McClatchy’s overall health. Over the last several months, McClatchy’s earnings reports have shown improving trends. Let me assure you, we are successfully navigating through these difficult economic times. Still, we are suffering ongoing revenue declines and we must continue to carefully manage our expenses.
It’s difficult to forecast exactly what 2010 may bring and what additional expense cuts may be necessary. What I can tell you is that we’d like to reward our employees for helping us manage through these challenging times by lifting the wage freeze. We recognize the many sacrifices you have made over the last few years and understand that cost-of-living expenses continue to rise, including the cost of health care.
Finally, I want to take this opportunity to recognize your efforts on behalf of McClatchy. Our company could not be successful without the continuing dedication and hard work of our employees. Thank you.