Coronavirus economic toll grows: Pay cuts, furloughs for workers at Kentucky industries
As more businesses are shutdown during the coronavirus pandemic, workers across Kentucky are being laid off, furloughed and seeing pay cuts.
▪ Lexmark in Lexington has instituted pay cuts for all 8,200 employees worldwide. “Based on the impact of the COVID-19 situation, Lexmark is undertaking difficult but necessary actions to preserve jobs,” the company said in a statement. “While continuing to serve our customers and partners, we have tightened spending controls, implemented a hiring freeze and travel restrictions, and postponed or canceled events.
“In addition, we have asked each Lexmark employee to take a temporary 20 percent base salary reduction for a three-month period. Company executives will take a 30 percent reduction, and president and CEO Allen Waugerman will take a 40 percent reduction during this time. Employee benefits are not affected by this temporary change.”
The company has 2,000 employees in the U.S., including 1,400 in Lexington.
▪ Toyota extended its shutdown of plants in North America another two weeks, through April 17. In Georgetown, Toyota Motor Manufacturing, KY will pay team members and variable workforce through April 10, according to spokesman Rick Hesterberg.
For the week April 13-19 employees will have the option of using PTO or unpaid time off, he said.
▪ Churchill Downs Inc. announced that all employees at its casinos, including Derby City Gaming in Louisville, as well as its Arlington International Racecourse in Illinois have been furloughed indefinitely.
But the company said they will continue to receive benefits including health insurance coverage. Also, all remaining salaried employees across the company will have their pay cut; the percentage varies according to the salary with the most senior level of management receiving the biggest decrease.
“This is not a decision any company ever wishes to make and it is particularly tough when those affected are deeply respected team members who have helped us build great facilities and strong businesses of which we are all very proud,” said CEO Bill Carstanjen.
