BBDO Detroit – 2 weeks unpaid for employees
June 13, 2009
BBDO Detroit is forcing their employees to 2 weeks vacation – unpaid. Or the other solutions is mass layoffs. Pick your poison, and it appears that what was chosen was 2 weeks unpaid.
Out of the two evils, this appears to be the better choice, but it’s also a band-aid to the overall problem, not enough business to support the staff. The story was initially broken by Agency Spy now has some more tidbidts of information that have been leaked out to us and are worth to note, we were told by an insider the following:
1 – This Furlough is based on the expectation of a quick recovery, as the 2 weeks will only stop the money bleeding for roughly equal to 36,000 hours out of the nearly 1,000,000 payroll hours per year. Meaning if business does not increase before that time, we will still have to layoff people, at least 100 if not more. This bought us at most 36,000 hours of employee payroll or in other words about 4% of our payroll expenditure. We’re betting on a quick recovery from this point going forward.
2 – We are closely tied to the overall economic outlook with Detroit as a whole. If the auto business does not pick up we will be faced with an ever increasing economic problem that can degrade our ability to maintain a large payroll.
This source works at BBDO Detroit.
Take it for what it’s worth….
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