Acco cuts worker salaries

Lincolnshire-based Acco Brands, which provides office supplies to the nation's largest chains, said Monday it is slashing most of its workers' salaries by 47 percent through late March in order to avoid layoffs.

Then workers will get part of that money restored, but endure a 20 percent pay cut from April through June.

The company has about 2,000 workers nationwide, including about 500 at its Lincolnshire headquarters and more at facilities in Wheeling, Hanover Park and Addison.

By late June, the company hopes to restore full salaries, but that depends on whether it meets its financial targets, said Acco spokesman Rich Nelson. "We heavily depend on white collar workers, and this cut affects them," said Nelson. "It doesn't affect our production and distribution hourly workers."

The downturn in the economy has hit numerous companies nationwide, including many of the office supply companies that Acco serves, such as Office Depot and Staples, Nelson said.

Acco is already working with 500 fewer workers in 2008 compared to 2007, due to a restructuring, Nelson said.

Acco plans to release its fourth-quarter earnings report on Feb. 27. For the first three quarters of fiscal 2008, the company already has lost around $81 million.