Star-Bulletin parent Oahu Publications, publisher of the Honolulu Star-Bulletin, MidWeek and military newspapers, will lay off almost 4 percent of its more than 480 staff and implement a temporary wage rollback for most employees. Staff members under a specific salary level will not be affected.
trims 4% of staff,
cuts wages
The company cites an economic
slowdown linked to the Sept. 11
attacks for the movesStar-Bulletin staff
The company cited poor economic conditions in the wake of the Sept. 11 terrorist attacks on the United States and continued weakness in industrywide advertising revenue as factors behind the decision.
Some 17 people were laid off from the advertising and administrative departments yesterday morning, and additional layoffs from the newsroom are anticipated, according to an announcement to the staff yesterday by Oahu Publications President Don Kendall.
"No one could have foreseen the economic problems caused by the Sept. 11 tragedy," Kendall said.
The economy's downturn has caused more than 23,000 local residents to file for unemployment benefits since the attack.
The approximately 85 nonsupervisory employees in the newsroom are members of The Hawaii Newspaper Guild and subject to the terms of a union contract.
"We will be sitting down with the company to review the numbers and see what kind of package can be worked out," said union Administrative Officer Wayne Cahill.
The paper has gained market share in terms of advertising since the company began publishing the Star-Bulletin March 15, Kendall said. Circulation has also grown.
Figures released last month by the Audit Bureau of Circulation show the Honolulu Star-Bulletin's daily circulation has grown nearly 5.5 percent from September 2000 to 2001, to an average of 63,343 a day. ABC shows the Honolulu Advertiser's daily circulation increased to 152,098, 38.9 percent more than last year. The Star-Bulletin in April added a Sunday edition which has grown to a paid circulation of 64,344. The Advertiser's Sunday paid circulation dropped 6.3 percent, from 185,042 to 173,336.
Advertising-driven media nationwide have seen a downturn in ad revenue for more than a year. Late last summer industry analysts reported that the worst appeared to be over, but that was before Sept. 11. Publicly traded publishing companies such as Gannett Co. Inc., publisher of the Honolulu Advertiser, have since reported decreased earnings and diminished projections for future performance.
