Regional publisher Johnston Press has announced it is deferring all staff pay reviews for six months and giving employees an extra day’s leave instead.
The company, which is continuing to cut costs in order to reduce its £350m debt, announced the move in an email sent to all staff this morning.
However it is holding out the prospect of a 2pc pay rise next year if it hits its profitability targets this year.
Johnston Press previously announced a pay freeze in 2008 which deferred all pay reviews in the following year for six months and says the current deferment will bring them back into line with their original dates.
The company said in a press statement: “Johnston Press plc today informed all staff in the UK and Isle of Man that, due to continued economic uncertainty, a decision has been made to defer pay increases for a period of six months.
“It was also decided that, in recognition of the hard work and commitment on newspaper re-launches and other initiatives, staff will receive an additional day’s holiday in 2012 and in subsequent years (pro-rata for part-time staff).
“This applies to all employees in the Johnston Press Group and operating companies, including the Republic of Ireland.
“The company also communicated that, provided 2012 profit forecasts are achieved, there will be a pay review in 2013 of 2pc in the UK and Isle of Man, and for staff covered by local collective agreements, bargaining will recommence in the normal way at the appropriate date.”