This memo just went out to Hachette employees, notifying them of company-wide pay cuts and an increase in hours.
Message from Alain Lemarchand, President & CEO, Hachette Filipacchi Media U.S.
Today's business environment requires decisive and quick action for the welfare of the company. This includes a number of difficult decisions on my part, some of which impact you personally. In this case, I deliberated long and carefully before coming to the conclusion that one of the steps that needs to be taken immediately is a cut in base salaries. Effective April 27, 2009, the salaries of all exempt employees will be reduced by 6% and the salaries of non- exempt employees by 3%. In addition, we are changing the regular work day from 7 ½ hours to 8 hours. For non-exempt employees, overtime will continue to be calculated on a weekly basis and will be paid for all hours worked over 40 hours.
I understand that this economy has already had an impact on each of you and that this represents another loss. I am sorry for that. We hope that taking this measure across the company will save headcount in the long run. I know you join me in wanting this company to remain competitive in this challenging marketplace. I want to assure you that once the economic picture improves, we will reevaluate this decision.
I thank you for your continued dedication to your work. Your professionalism and contributions are essential to the ultimate performance and success of HFM U.S.