WPP AUNZ has restored full pay to staff whose pay was cut during the depths of the economic fallout from the pandemic.
Jen Monsees confirmed the move in an interview with AdNews.
“We’re back now on full salary and full incentives," he says. "That was a temporary first reaction."
The restoration of a full week's pay is a major move for the industry, winding back some of the cuts made during the early days of the pandemic in March.
Some sectors of the media indusrty, however, are continuing with a reduced working week. Among them, about half of all employees at oOh!media have opted to continue a nine-day fortnight for the next three months.
WPP AUNZ announced its first half results showing a drop in both revenue and profit.
However, the local arm of the world's biggest advertising group says June and July were more profitable than the same months last year.
“That is a very positive trend,” he says.
But WPP AUNZ is not yet commiting to forecasts: "Given the level of economic uncertainty, earnings guidance has not been provided for 2020."
The company took an axe to its costs in March, asking its executives to take a pay cut and encouraging its 4,000 staff to reduce hours to work nine-day fortnights or four-day weeks.
Around the same time company withdrew previously announced dividends to shareholders, saving $37.5 million.
The company has also renewed and extended its $420 million debt facilities with a syndicate of four banks to provide "stability and flexibility" to drive growth.
The quick move to reduce costs saved the company $28 million in the six months to June.
The half year results announcement shows full year cost savings of about $70 million in 2020, and $80 million to $100 million in 2021.
Monsees says the company was flexible and agile when COVID-19 hit.
"We were, I think, reacting quickly to the market, and the new demand," he says.
“With our transformation strategy, we were able to leverage our collaboration mode and reduce our complexity and have a much leaner and stronger approach.
"I think we have to look at it in two steps. So the first reaction is obviously quick and flexible. And then the more sustainable and long term impact is much bigger if you are streamlining the structures and reducing complexity. I am not talking now about only COVID but what was on the general transformation agenda.
"We have a new leadership model. We have a much more collaborative approach. I'm very proud of the team. They really achieved a lot in that short period."
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