SCA rolls out pay cuts and enforced leave
Southern Cross Austereo (SCA) has brought in a range of new measures as it struggles to find a way through the coronavirus (COVID-19) pandemic.
For a six-month period, SCA staffers will take pay cuts and be required to take no less than 10 days of leave.
SCA CEO Grant Blackley said the measures were required for the business to survive
From 1 April, 2020, all SCA staffers earning a base remuneration of $68,000 or above will have their pay reduced by 10%. This will not impact SCA employees paid on an award-based wage and no employee will work overtime during this period.
SCA’s on-air talent have offered their assistance and reduced their fees and contracts by 10%.
Between now and 30 June, 2020 all employees will be required to take no less than 10 days’ leave. Employees with significant annual or long service leave balances have been asked to utilise as much leave as possible over the next six months.
There will be no executive incentives paid during the 2020 financial year and recruitment will cease immediately.
SCA CEO Grant Blackley said the measures are in place to help the business survive.
SCA has paused recruitment activities
“We have taken these measures swiftly to protect the long-term health of our business and our people. We are endeavouring to ensure our people’s jobs remain for as long as possible during this unprecedented situation we all find ourselves in,” said Blackley.
“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.”
SCA entered a voluntary suspension today after a trading halt earlier in the week.
It was 35 years ago that 2DayFM and Triple M were the powerhouses of Sydney radio with ad revenue flooding through the front doors. AM music stations, such as 2SM with its callsign looking over the harbour, were struggling after decades of indisputable strength. Now in 2020 we see Triple M and 2DayFM introducing wage cuts and a suspension of share trading as the company moves to save itself. The media is one of the most dynamic and unpredictable industries. One day everyone is drinking champagne, the next year the office supply cupboard is empty. Good luck everyone – your skills will shine through.
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I understand this is an unprecedented situation that impacts a lot of people and businesses. Am just wondering what employers can ask or direct their employees to do.
Fairwork doesnt mention pay cuts as an option. Can someone tell me what you can and cannot do/get asked to do? As a full time employee?
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Hi there LTL,
I’m trying to look into this at the moment, so we can put together some information for the industry on their rights and responsibilities.
If you come across anything helpful, please feel free to post it here.
Thanks,
Vivienne – Mumbrella
SCA has changed contracts of employees at least 3 times in the last 5 years – not in the employees favour. They asked you to sign it – if you refused, they said it was happening anyway… Im talking Sales personnel here. This apparently was not illegal…. My earnings went down every financial year even though I was writing more and more revenue……..
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There are other network who will value you, your time and your mental health above their inability to run a business.
Get out while you can.
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No one I ever worked with at SCA was ever given paid overtime work myself included. Most of the announcers are close to minimum wage anyway unless they’re in the city. I left SCA on good terms but my advice to anyone looking to work for them, look elsewhere unless you like over worked, underpaid, toxic environments with absolutely no support for the mental wellbeing of their employees. Contra deals left and right to suit the GMs and Sales Manager. Anyone else is wasting their time.
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Good to be out! SCA is set on ruthless box ticking management while revenue plunges around them. Employees are “loved” until not required. 30 lifetime Engineers told SCA could no longer afford the premium service they provided and were moving to a more expensive pay for transmission service model where the contractor has no care for the product!
Thanks for coming! Bye
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I am interested to know if with the reduced pay, if staff are entitled to work less hours? Or is it same job just less money?
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Hi JI,
We’re in the process of putting together some information on this for the market. Keep an eye out.
Thanks,
Vivienne – Mumbrella
This is going to be hard to take for a lot of employees at SCA, and perhaps rightly so. 10% on $70k has a lot bigger impact to an individual than 10% on $700k.
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They at least know how to keep the lights on and the clients happy.
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any update on this viv?
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Hi WT,
We spoke to an employment lawyer and put together an explainer here:
https://mumbrella.com.au/from-pay-cuts-to-job-losses-how-the-industry-can-and-should-respond-to-a-pandemic-623091
I hope this helps,
Viv – Mumbrella