The state of the newspaper industry continues its downward spiral. My former company, GateHouse Media, Inc. announced significant pay cuts to all employees today.
According to friends still working for the company, employee salaries are being cut by an average of about 7 percent. The announcement was made Thursday morning during an all staff meeting.
The mood in the room was one of "quiet resignation," according to one individual at the meeting.
The following is an excerpt from an e-mail sent to employees by GateHouse CEO Rick Daniels.
A MESSAGE FROM RICK DANIELS, CEO/PRESIDENT GHMNE
As we all know too well, the road out of the horrendous economic and advertising slump has been extremely difficult, and yet we have a lot to be proud of on how we have responded. We are still bringing valuable and unique local news, information and advertising to our huge print and digital audiences. Together, we have taken many tough actions that have preserved — and often enhanced — our capabilities, while substantially decreasing GHMNE's structural costs.
Regrettably, we need to share some tough news: Beginning June 1, we will implement a temporary reduction of our salaries and wages. The average GateHouse Massachusetts employee will see a reduction of about 7.75%. If this were to last through the remainder of 2009, the effect would be to reduce 2009 salaries by about 4% — given it is not starting until June. Rates will vary, and will be "progressive" — meaning that higher earnings will be reduced at higher rates. Your supervisor will share your amount with you. All publications and units in Massachusetts are affected by this step. We are sitting down — today — with representatives of our unionized colleagues to start negotiations on this issue. We expect participation from all — fully and soon.
See more here: GateHouse pay cuts
I think possibly the most damaging aspect to the cuts is the hit to employee morale they’ll have (next to the very real impact on every employees' paycheck). The reduction in salary comes on top of a wage freeze enacted last year. That's injury on top of insult.
Sadly, it’s difficult (or nearly impossible) to make a living wage as a journalist these days, at least a journalist for a weekly community newspaper. The one sure thing is you don't become a journalist for the money.
In my experience working for weekly papers, reporters in Massachusetts are paid somewhere between $11 and $13 an hour. It’s tough affording to live in Boston on that wage.
I was told today that I jumped ship at the right time having resigned my staff writer position at The Winchester Star a week ago, but what worries me is the prospect of landing a job at another publication in the future. With cuts like these being made, it’s clear newspapers won’t be hiring any time soon.
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