Kentucky Local News, Weather, Sports | Lexington, KY | WKYT

Pay Freezes Spread During Recession

WASHINGTON (AP) - President Barack Obama isn't the only one
ordering pay freezes amid the fallout, economic and political, from
a brutal recession.
The White House, Tropicana Casino and Resort and Avis are all
part of a growing trend by employers to use pay freezes as a key
cost-saving tool for surviving hard times.
The unemployment rate has bolted to a 16-year high of 7.2
percent and 2.6 million jobs vanished last year, the most since
World War II.
Squeezed employers seeking an alternative to layoffs are turning
to pay freezes and pay reductions. Other cost-cutting options
include ending their contributions to 401(k) accounts.
For Obama, who ordered a pay freeze for White House employees
earning over $100,000 a year, the move on his first full day in
office sent a message to a nervous country: We're in this together.


Comments are posted from viewers like you and do not always reflect the views of this station.
powered by Disqus

WKYT

2851 Winchester Rd. Lexington, Ky 40509 859-299-0411 - switchboard 859-299-2727 - newsroom
Copyright © 2002-2014 - Designed by Gray Digital Media - Powered by Clickability 38136459 - wkyt.com/a?a=38136459
Gray Television, Inc.