Singapore, 12 March 2009 – Singapore Press Holdings Limited (SPH) today announced pay cuts for 3000 staff which, together with a reduction in profit-related bonuses, would result in an estimated 20% reduction in the wage bill for its core businesses.
The cuts in monthly pay, which will take effect from 1 April, will be between 2% and 10%. The actual cut will depend on each staff’s current pay package, with higher paid staff taking the brunt of the pay cuts. Staff who earn $2000 or less will not have any cut in their monthly pay.
Subsidiaries in the group will implement their own pay cuts which will depend on their respective situations.
The move is the latest cost-cutting measure in response to the sharp deterioration in business conditions.
The wage revision was concluded following negotiations with the Company’s two unions – the Singapore Press Holdings Employees’ Union (SPHEU) and the Singapore National Union of Journalists (SNUJ).
With the decline in newspaper profits, there will also be a concomitant reduction in profit-related bonuses. Senior management staff will take the highest reduction, expected at about 30% of their total annual remuneration.
In addition to the pay cuts, SPH has also instituted a range of cost-cutting measures which include a recruitment freeze and a reduction in operating expenses.
Mr Alan Chan, Chief Executive Officer of SPH, says: "We need to bring our costs down in the face of a weaker advertising market and uncertain business environment. It is imperative that we prepare for a longer than expected downturn so that we can emerge stronger when the economy recovers."
Issued by Singapore Press Holdings Limited
Co. Regn. No: 198402868E
For more information or media enquiries, please contact:
Chin Soo Fang
Singapore Press Holdings
DID: 6319 1216
About Singapore Press Holdings Ltd
Main board-listed Singapore Press Holdings Ltd (SPH) is Southeast Asia’s leading media organisation, engaging minds and enriching lives across multiple languages and platforms. It publishes 17 newspaper titles in four languages and over 100 magazine titles in Singapore and the region. Every day, 2.9 million individuals or 79 percent of people above 15 years old, read one of SPH’s news publications. SPH’s internet editions of its major newspapers enjoy over 150 million page views with 9 million unique visitors each month. Other new media initiatives include AsiaOne, omy, rednano.sg, ST701, STOMP and The Straits Times RazorTV. SPH has also ventured into broadcasting, outdoor advertising and properties.