The companies cure themselves by lowering salaries
10.03.2009, 09:06 Although just six months ago the salary cut
seemed impossible, it’s currently a common mean of saving the company, Äripäev
writes.
Raul Puusepp, the CEO of Tallinna Kaubamaja is announcing of salary cut
today. He wasn’t willing to say the exact numbers yesterday, since he has to
announce exact numbers today.
“I don’t want them to read it from the newspaper,” Puusepp said.
Ekspress Group has lowered their salaries by 10 pct, except those who earn
less than EEK 10,000 a month. That cut is valid from March 1, 2009 to March 1,
2010.
“Since the advertisement market has dropped a lot, then inevitably we have to
review our expenses,” Priit Leito, the chairperson of Ekspress Group’s
management board said.
The company saves about EEK 25 mln with the salary cut.
“That is better than laying people off, since it enables to keep the quality
of journalism through difficult times,” Leito said.
Anne Meri, the chairperson of Rakvere Lihakombinaat’s management board said
they cut the salaries by 10 pct from April 1.
“At times I don’t understand what’s the fuss around the salary cuts. It’s
normal that salaries raise when the economy is doing well. It’s normal that
currently, when the economy is doing bad, salaries fall. I think that those
companies, which do so, want to be effective,” Meri said.
The salary is cut for all 880 employees and Rakvere Lihakombinaat hopes to
win EEK 10 mln a year.
Olympic Entertainment Group cut the salaries by fifth and Liviko decreased
salaries on performance pay.