A Message from National Press Club President Michael Freedman
Dear Colleagues,
The financial reality of the coronavirus crisis, which has already affected many news organizations and other businesses across the country, has finally hit home for the National Press Club. There is no way to downplay the actions now necessary, including temporary furloughs and salary reductions, in order to maintain our financial stability.
As many of you know, the Board of Governors voted to keep full-time staff at full pay and benefits for more than three months since in-person operations were suspended and telework initiated on March 16. Our top priority then, as now, has been the health and safety of our Club family, including staff and members.
Over the past two weeks, under Phase One of Washington, D.C.’s easing of restrictions during the continuing health crisis, the Club has resumed limited in-service operations. The anticipated move to Phase 2 will allow for the resumption of additional services and expanded capacity. Still, a return to normal operations as we knew them prior to the global pandemic, is not within sight.
The Club was fortunate to receive a CARES Act Paycheck Protection Program (PPP) low interest loan which allowed for the continuation of full pay and benefits for an extended period. If all goes as planned under terms of the CARES Act, the loan will be converted to a grant. We have now come to the end of that funding.
As a result—with the likelihood of a slow return to full operations and to protect the Club’s long-term financial stability—the Board of Governors has authorized Executive Director Bill McCarren to proceed with a plan to furlough up to 50 of our 113 regular staff members and temporarily reduce the salaries of remaining professional staff by 15 percent, in order to align payroll costs with current and anticipated levels of business during the Covid-19 pandemic and ensuing economic recovery.
This package was one of several considered by the board and was deemed the most reasonable for staff under the circumstances.
Under the plan, all furloughed staff members are eligible for unemployment benefits, their health care will continue, they will receive pay for accrued vacation time, and there is an expectation of being recalled as business returns.
Had the Board opted for layoffs, all benefits would cease for most employees and there would be no expectation of a callback.
While there have been short term furloughs imposed in the past, nothing of this magnitude has been necessary in the 113-year history of the National Press Club.
In taking this difficult action, the Board of Governors offers our heartfelt appreciation to all our employees for their dedicated and substantial service. And we look forward to the day we can welcome them back.
We thank Bill McCarren for his guidance and his thoughtful management of our Club during this unprecedented period. And we thank you, our members, for your comments, suggestions, recommendations and active engagement throughout this challenging time, as well as your support of – and dedication to – the National Press Club.
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