Would you be willing to cut your pay in half just to save your job?
A company in Lincolnshire is taking the dramatic approach to cutting costs by cutting wages for most of its 2,000 U.S.-based employees next month.
Office products company Acco Brands Corp., notified employees Monday morning that for six weeks beginning Feb. 23, they'll get 53 percent of their normal salaries. After that, and through the end of June, they will recieve 80 percent of their salaries.
Executive's said their decision was a tough one.
"We've considered all the alternatives in this is really the best one for the company and for our people to conserve jobs," said communications vice-president Rich Nelson.
Most employees said they're concerned with needing to pay 100 percent of their bills with 50 percent of their pay.
Acco is not alone. FedEx recently announced pay cuts. The Tribune Company has instituted a pay freeze. Motorola stopped contributing to 401(k) plans.
Many analysts predict the economic downturn could continue through the year. Acco said it will provide assistance to employees in the most extreme cases. Some will be able to borrow from future earnings to help pay bills until their full salaries are restored.