The letter came by e-mail from the Ivory Tower in Richmond. It went to nearly 5,600 employees from Tampa to Providence... including the gang at NBC 4 in Columbus. "Earnings reports have been worse than expected... each of us will take a mandatory 10 days off."10 days. Everyone. We've been furloughed. The entire company has to take four days before the end of March and three days in the second and third quarters. They haven't said what will happen in the fourth quarter... yet.
The pay cut is nearly 4% for every Media General employee.
Four percent is a lot. Especially for many people who are living paycheck-to-paycheck.
As of 02/18/2009, Forbes.com reports that Media General CEO Marshall Morton rakes in a compensation package of nearly $2.8 million per year. A four-percent cut certainly won't put much of a crimp in his household budget. A letter from him feigning empathy rings exceedingly hollow. Thanks, pal.
This involuntary sacrifice is supposed to save the company money. At least $9 million. Suspending the 401(k) match and killing off the stock dividends brings the total "savings" to nearly $28 million.
The Tampa Tribune is losing money hand over fist. The entire newspaper industry is in a death spiral (at a later date, we can discuss the print industry's abject failure to recognize the importance of the internet). The broadcast division is still making money (for now)... and propping up what's left of the newspapers. It's time for the print industry to either switch to the web or die. There simply is no future for any of MG's 24 dailies or more than 250 weeklies. They're sucking the life out of the company. It's over.
Media General's website lists its core Mission and Values. "We have a long-term commitment to our employees, our customers, the communities we serve and our shareholders," it says. Furloughed workers would certainly agree the Company has a commitment to its shareholders... but might question the Company's "commitment" to its employees.
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