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More furloughs at KARE, St. Cloud Times

Get ready to see less of your favorite KARE personalities this spring: the station's ownership, Gannett Co., has announced another unpaid week off for most workers. The plan also affects the staff of the Gannett-owned St. Cloud Times.

Workers at both shops already absorbed a week's furlough this winter; together with today's announcement, the stop-work orders amount to a 4 percent salary cut. CEO Craig Dubow's memo (below) says the best-paid staffer could take an additional temporary pay cut rather than more time off; Broadcast Division president Dave Lougee's memo (below Dubow's) indicates that damage might be limited to managers.

Anchors with contracts may not be bound by the dictum, but could take voluntary cuts in solidarity. KARE's reporting staff isn't unionized.

The furlough plan's advantages, such as they are, is that it limits layoffs and for most employees does not reduce base salary should the economy ever rebound.

There appears to be no bounceback in sight for the mammoth media company; as Dubow (who snared a $1.75 million bonus last year) wrote, "our revenue numbers continue their downward slide." Gannett's stock has sunk from $30 a share last spring to $2.30 today.

Here's the memo:

Dear Co-workers:

We are about to begin the second quarter without any real relief in sight from this unprecedented economic downturn and its challenge to our company. Despite all of your truly remarkable efforts to reverse the trend, our revenue numbers continue their downward slide and we have been faced with more difficult decisions.

One of those choices was between more layoffs or another round of furloughs. We chose, for most employees, a furlough program consisting of at least one week of unpaid leave to be taken in April, May or June.

The program will differ from the first quarter’s in a couple of important ways:

* The length of the furlough for employees will vary somewhat by division or location, depending on the division’s operating needs and results.

* Our higher salaried employees will be asked to make an additional sacrifice. This could be a second furlough week or a week’s furlough plus a temporary salary reduction equivalent to one week’s pay for the quarter, depending on the division and/or location.

* Some hourly employees will not be required to take a full week. Each division or location will have different requirements for employees in this category.

Because of the variations, your division head will be the main source of information about your particular program. Memos will be going out shortly to each of you with specific details.

Corporate employees will be participating, as with the first quarter’s program, including all of our company officers and me. Corporate’s memo will come from Gracia.

There will be some exemptions, similar to the first quarter’s program. For instance, some locations that recently have had, or are in the midst of, layoffs or significant salary reductions will be exempt. Represented employees again will be asked to participate in lieu of layoffs.

As with our first program, we are doing furloughs to hopefully mitigate the need for layoffs and to preserve our operations in the face of these extraordinary economic times. We believe this is the best possible course, given the alternatives.

We also need to keep innovating, selling ads and reaching out to audiences to prepare for the return of the economy. When that happens, I believe we will be well prepared to move quickly and take advantage of the new opportunities.

Again, I must thank you all for your hard work, loyalty and dedication. I am truly looking forward to the day I can send an email that congratulates you on getting us through these hard times. That day isn’t here yet, but I believe it will be. So we must continue to do whatever we can to keep Gannett strong and prepare for the future.

Sincerely,

Craig

Here's Lougee's memo:

I want to thank everyone across the broadcast division for their personal and collective commitment to navigating through this unprecedented economic storm. I know that the furlough program we instituted in January has required a lot of sacrifice. It has successfully allowed us to minimize layoffs while making necessary cost reductions.

Unfortunately, as you all know, economic conditions have continued to decline through the first three months of this year. As a result, advertisers have pulled back across all mediums, and to levels that puts all of the media industry in uncharted water. We have no choice but to make some tough decisions, again with the goal of maintaining strong operations while minimizing layoffs.

In April, May and June, non-represented employees will have a mandatory one week furlough. Unions will be asked to accept the furlough in lieu of layoffs.

Furthermore, there will be an additional step for all members of the Broadcast Division management team including myself, as well as the general managers, department heads and sales managers at each operating unit. In addition to the 1-week furlough, this group will have a temporary 1-week reduction in pay spread evenly across the three months. The goal of this additional step is the same, to minimize layoffs.

A furlough means you will not work and will not be paid for furlough days. Exempt, salaried employees will take one full payroll week. Non-exempt, hourly employees will take five days at a pre-approved time. All furloughs must be completed by the last weekend in June. Attached is a fact sheet with more information. Your general manager and HR representative will have more information to assist you with questions in the days ahead, and you are free to contact me as well at dlougee@gannett.com.

Comments (1)

Whaddya mean, "should the economy ever rebound." C'mon, man...it's not THAT bad.