Harry & David cuts salaries 10-30 percent

Salaried employees at cash-strapped Harry & David Holdings will see their pay slashed 10 percent to 30 percent starting Wednesday.

The reductions impact about 600 employees at the gourmet food and gift retailer’s headquarters in Medford, its Hopewell Campus in Hebron, Ohio and Harry and David stores through out the country. Employees paid hourly are not affected.

The cuts are part of a plan instituted in the aftermath of a disappointing holiday sales period, and employees were told in meetings today that they were temporary.

Chief Executive Officer Bill Williams is taking a 30 percent pay cut and will lose country club membership, financial planning services and some executive medical benefits. His car allowance will be rolled into his regular salary, a company source said.

Management met with employees beginning at 9 a.m. today to discuss the changes.

The salaried employees, who receive between three and six weeks vacation annually, will receive an additional 40 hours paid time off this year.

"We are doing what is in the best interest of both the business and the employees," company spokesman Bill Ihle said.

— Greg Stiles

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