<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>Jan 10, 2009
</TR><!-- headline one : start --><TR>MediaCorp cuts costs <!--10 min-->
</TR><!-- headline one : end --><TR>Common leave, shorter work weeks among steps to avoid layoffs </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Robin Chan
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Mr Chow (pictured)underlined yesterday just how serious the situation was: 'Going into the new fiscal year, we have to go even further in order to keep the company afloat. These are unusual times calling for unusual measures.' --PHOTO: BT
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<!-- START OF : div id="storytext"-->MEDIA giant MediaCorp is instituting a range of cost-cutting measures, including mandatory days off without pay, to combat the slowdown and avert job losses.
But the company's TV and radio programmes, publications and online properties will not be affected, Channel NewsAsia (CNA) reported yesterday.
Chief executive Lucas Chow told staff in a circular yesterday that common leave days will be introduced, shorter work weeks implemented, new curbs placed on holiday entitlements and some benefits reduced.
The belt-tightening steps are being made to avoid layoffs, said the company which employs around 2,500 people.
They also come on top of earlier steps that cut some performance bonuses and capped travel and administration expenses.
Mr Chow underlined yesterday just how serious the situation was: 'Going into the new fiscal year, we have to go even further in order to keep the company afloat. These are unusual times calling for unusual measures.'
One of the most dramatic of these was that all staff, except those in round-the-clock services like news or radio, must take seven common leave days - with pay - over the next 12 months. This will allow some operations to be halted, although Mr Chow did not specify which ones.
The first leave break starts with the three days right after the Chinese New Year holiday.
The broadcaster, which runs CNA and the free newspaper Today, will also implement a four-day work week every other week. This will apply to all employees.
These so-called 'MediaCorp days off' will start in April and will mean a total of 26 unpaid days off in a 12-month period. It will amount to a 10 per cent cut in MediaCorp's annual wage bill, a report on the CNA website said. The report added the alternate short week and common leave will be scheduled around public holidays and school vacations.
This will mean breaks for some staff lasting up to a week. The days have already been selected and staff have been informed.
Employees were surprised by the announcement. One said: 'Are things really that bad that they have to resort to this?'
Another added: 'I'm thankful to still have a job, but this means that effectively I will get only 11 months' pay.'
From April onwards, employees will also be required to clear all their annual leave and will no longer be allowed to carry holiday entitlements forward to the next year.
A new benefit scheme started last year that gave staff $100 each has been suspended indefinitely.
Mr Chow, who will host an open forum at MediaCorp next Monday afternoon, said in his circular that the financial year ending March 31, while 'largely on track in the first half, will be hit by the weakening economy'.
The firm had revenue of $530 million for the year ended March 31, 2008 with profit of $52 million.
'MediaCorp relies heavily on advertising revenue, which is extremely sensitive to the overall economic climate,' stated Mr Chow. 'As a result, our financial performance in the third quarter has been affected and prospects look weak in the months ahead.
'Manpower salaries form a big part of our operating expense, and we have no choice but to manage this cost element.' He said he remains committed to saving jobs, and has consulted union leaders, management and the chairman.
Mr Ang Wah Lai, president of the Singapore Union of Broadcasting Employees, told CNA: 'Our employees understand it's a necessary step to save jobs.'
Labour chief Lim Swee Say said the consultation between the union and the company will 'strengthen trust and build confidence which is especially critical during this downturn'. [email protected]
</TR><!-- headline one : start --><TR>MediaCorp cuts costs <!--10 min-->
</TR><!-- headline one : end --><TR>Common leave, shorter work weeks among steps to avoid layoffs </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Robin Chan
</TD></TR><!-- show image if available --><TR vAlign=bottom><TD width=330>
</TD><TD width=10>
Mr Chow (pictured)underlined yesterday just how serious the situation was: 'Going into the new fiscal year, we have to go even further in order to keep the company afloat. These are unusual times calling for unusual measures.' --PHOTO: BT
</TD></TR></TBODY></TABLE>
<!-- START OF : div id="storytext"-->MEDIA giant MediaCorp is instituting a range of cost-cutting measures, including mandatory days off without pay, to combat the slowdown and avert job losses.
But the company's TV and radio programmes, publications and online properties will not be affected, Channel NewsAsia (CNA) reported yesterday.
Chief executive Lucas Chow told staff in a circular yesterday that common leave days will be introduced, shorter work weeks implemented, new curbs placed on holiday entitlements and some benefits reduced.
The belt-tightening steps are being made to avoid layoffs, said the company which employs around 2,500 people.
They also come on top of earlier steps that cut some performance bonuses and capped travel and administration expenses.
Mr Chow underlined yesterday just how serious the situation was: 'Going into the new fiscal year, we have to go even further in order to keep the company afloat. These are unusual times calling for unusual measures.'
One of the most dramatic of these was that all staff, except those in round-the-clock services like news or radio, must take seven common leave days - with pay - over the next 12 months. This will allow some operations to be halted, although Mr Chow did not specify which ones.
The first leave break starts with the three days right after the Chinese New Year holiday.
The broadcaster, which runs CNA and the free newspaper Today, will also implement a four-day work week every other week. This will apply to all employees.
These so-called 'MediaCorp days off' will start in April and will mean a total of 26 unpaid days off in a 12-month period. It will amount to a 10 per cent cut in MediaCorp's annual wage bill, a report on the CNA website said. The report added the alternate short week and common leave will be scheduled around public holidays and school vacations.
This will mean breaks for some staff lasting up to a week. The days have already been selected and staff have been informed.
Employees were surprised by the announcement. One said: 'Are things really that bad that they have to resort to this?'
Another added: 'I'm thankful to still have a job, but this means that effectively I will get only 11 months' pay.'
From April onwards, employees will also be required to clear all their annual leave and will no longer be allowed to carry holiday entitlements forward to the next year.
A new benefit scheme started last year that gave staff $100 each has been suspended indefinitely.
Mr Chow, who will host an open forum at MediaCorp next Monday afternoon, said in his circular that the financial year ending March 31, while 'largely on track in the first half, will be hit by the weakening economy'.
The firm had revenue of $530 million for the year ended March 31, 2008 with profit of $52 million.
'MediaCorp relies heavily on advertising revenue, which is extremely sensitive to the overall economic climate,' stated Mr Chow. 'As a result, our financial performance in the third quarter has been affected and prospects look weak in the months ahead.
'Manpower salaries form a big part of our operating expense, and we have no choice but to manage this cost element.' He said he remains committed to saving jobs, and has consulted union leaders, management and the chairman.
Mr Ang Wah Lai, president of the Singapore Union of Broadcasting Employees, told CNA: 'Our employees understand it's a necessary step to save jobs.'
Labour chief Lim Swee Say said the consultation between the union and the company will 'strengthen trust and build confidence which is especially critical during this downturn'. [email protected]
