Pay cuts hit Sun-Herald staff

Workers at the Colusa County Sun-Herald will get a 5 percent cut in pay effective July 13 as part of an across-the-board reduction being implemented by its parent company, Irvine-based Freedom Communications Inc.

The company, like media firms across the country, has struggled financially due to the weak economy, declining advertising and circulation and new competition from the Internet. At the same time Freedom is laboring under $700 million in debt, which it took on in 2004 to pay members of the family-owned company who wanted to cash in their shares.

Over the last couple of years, Freedom has implemented a range of cuts including voluntary severance, layoffs and ending the company’s matching contribution to the 401-K plan. During the second quarter, all employees had to take a five-day unpaid furlough.

 Burl Osborne, Freedom’s incoming interim chief executive, said the executive team considered and rejected other actions, including additional furloughs in the last two quarters of the year and further layoffs.

“There is no best way,” he said. “This, I believe, is the least worst way. No one is enjoying this.”

He said the goal was to preserve the quality of the products the company produces.

“We felt that taking this action provided the best opportunity to maintain an organization that will meet the needs of our advertisers, readers and viewers,” Osborne wrote in a memo to colleagues.  “Equally important, it will help us deliver on our financial commitments in 2009 and set us up for a stronger 2010.”

Freedom Communications owns 33 daily newspapers across the country, more than 70 weekly newspapers, magazines and other specialty publications and seven broadcast stations.  The Sun-Herald is a publication of Tri-County Newspapers, which also publishes the Corning Observer, the Willows Journal and the Orland Press-Register.

Other media companies are making similar cuts to those implemented by Freedom.  Employees at the New York Times got a 5 percent pay cut earlier this year while unions representing workers at the Denver Post approved an 11.7 percent decrease in benefits, including a 7.4 percent reduction in pay.

Last week, the Boston Newspaper Guild reached a tentative agreement with the New York Times Co., parent of the Boston Globe, after contentious negotiations during which the Times threatened to shut down the paper.  The guild agreement provides for a 5.94 percent pay cut, five unpaid days of furlough, two days of unpaid vacation and one unpaid holiday.