Local Company Making Headlines for Cutting Pay

By Kevin Robinson in News on Feb 18, 2009 4:00PM

Acco Brands, the Lincolnshire-based office products company, is taking an unusual step in these tough economic times to avoid layoffs: pay cuts. Acco plans to cut the pay of its U.S.-based salaried and hourly employees, as well as the executive officers by 20 percent begining February 23, through June of this year. It will also impose an additional two-week salary reduction, while maintaining a regular five day work week. The company's chief executive will take a pay cut of 57 percent through April, and a reduction in salary of 30 percent through June.

Acco, which imports such well-known brands as Swingline, has seen its stock fall more than 11 percent, closing yesterday at $1.40 a share. "It's an alternative to permanent reductions in force," company spokesman Rich Nelson told the Tribune. "It allows people to stay employed, but we realize it imposes some hardships as well."

The company, which is dependent on orders, has seen a drastic decline in sales this year. They've also cut travel, bonuses and 401K contributions. Acco plans to return wages to normal levels in the third and fourth quarters of the year, when office supply orders are typically up. In the meantime, they're offering emergency loans to employees that may be struggling to cover costs.