SCA cuts wages & extends ASX trading halt amid COVID-19 crisis
Desperate times call for desperate measures.
Southern Cross Austereo has voluntarily extended its trading halt today, with plans to reenter the market on April 3. But there are no guarantees in these troubled times.
SCA went into an initial trading halt on Monday (March 23), with shares closing at 16 cents, saying the voluntary suspension is necessary to assess the impacts of the COVID-19 crisis.
The radio, television and digital business has also negotiated some short-term compromises with its workforce to secure its future and this of its employees.
Most workers and on-air talent, including breakfast and drive talent, will take a pay cut. And yes, that does include the senior leadership team and CEO Grant Blackley.
Anyone on the SCA payroll earning a base remuneration of $68,000 or above will have their remuneration reduced by 10%, excluding those on an award-based wage.
According to a statement sent to Radio Today, SCA confirmed staffers will also be forced to take no less than 10 days annual leave and won’t be expected to clock any overtime.
“We have taken these measures swiftly to protect the long-term health of our business and our people,” said Blackley.
Employees with significant annual or long service leave balances have been asked to utilise as much leave as possible over the next six months.
“We are endeavouring to ensure our people’s jobs remain for as long as possible during this unprecedented situation we all find ourselves in.
“These measures will impact all of us and I would like to thank and acknowledge our incredible staff for their support and commitment to our business.”
The new measures will carry through to June 30, being the end of the financial year, with no executive incentives paid during the current financial year and recruitment on hold indefinitely.
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