Unlike the New York Jets, who will start mandatory furloughs in the event of a lockout, the Kansas City Chiefs will reduce the pay of all employees when the league’s business is suspended, according to The Star.
The salary-reduction plan would be phased in over eight months, according to a Chiefs source with knowledge of the plan. No employees will be laid off or furloughed. Employees would retain full benefits.
Salary adjustments would be tiered across the organization and those with the highest salaries would receive the greatest percentage reductions.
“The plan contemplates any and all scenarios,” the source said. “Even in the worst-case scenario, the average reduction for all employees would be less than 10 percent. The salaries of top executives, vice presidents and assistant coaches would be reduced by less than 20 percent, on average.”
If the owners and players reach a labor agreement in time for a full 2011 season to be played, employees would be reimbursed for the salary lost during the duration of the lockout.
“Everyone is paid in full if we play a full season,” the source said.
Considering how many jobs the team has cut over the last two years, it’s great to see them make sure their current employees all keep their job and, just as importantly, their benefits. Also, knowing that they will be reimbursed will help any cash-strapped lower level assistants plan their budget knowing more cash is coming.
Obviously the best case scenario is avoiding a lockout all together, but this is the best way to handle a terrible situation.