March 13, 2009
Decision will slash wage bill by 20%; higher-paid staff to bear the brunt of the cuts
By Alvin Foo
MEDIA group Singapore Press Holdings (SPH) announced salary cuts for about 3,000 staff yesterday, among other cost-saving measures to cope with the economic slowdown.
Staff were told of the measures, which also include a hiring freeze, at a briefing in the afternoon after the share market had closed.
FACING THE DOWNTURN'It is imperative that we prepare for a longer-than-expected downturn so that we can emerge stronger when the economy recovers.'
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The pay cuts will range from 2 per cent to 10 per cent and take effect on April 1. The company will grant extra leave to staff whose pay will be trimmed.
Singapore's largest listed media company said the cuts, together with reductions in profit-related bonuses, will slash the wage bill for its key businesses by an estimated 20 per cent.
SPH chief executive officer Alan Chan said: 'We need to bring our costs down in the face of a weaker advertising market and an uncertain business environment.
'It is imperative that we prepare for a longer- than-expected downturn so that we can emerge stronger when the economy recovers.'
SPH has also instituted steps such as slashing operating expenses and a recruitment freeze.
Higher-paid staff will bear the brunt of the wage cuts. Those earning $2,000 and below a month will not be affected.
The company said the wage revision was done following negotiations with its two unions.
Mr Johari Sadli, general secretary of the 1,000-member SPH Employees' Union, said: 'It is a measure to prevent more drastic action later on. It is never easy when it comes to wage cuts, but our members generally understand the economic situation.'Labels: article, unemployment
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