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 Weak Economy Forces Goodwill to Make Adjustments Just like so many other businesses, Goodwill has also been hit hard by the weak economy. Cuts in funding have hurt Goodwill’s operations. Funds from contracts with the Ohio Department of Job and Family Services in both Mahoning and Trumbull County were either used up or canceled. Money from these two contracts cost Goodwill approximately $30,000 a month, but Goodwill is hopeful that both contracts will be renewed for Job and Family Services new fiscal year in July. Weak store sales and the loss of janitorial contract jobs in 2008 have also contributed to the loss of revenue.
In February, Goodwill had to issue pay-cuts, layoffs or restructure jobs in order to compensate for the loss in revenue. All staff members took either a 5% pay cut or a reduction in hours. Two staff members were laid-off. Two other staff members who saw their hours cut in half, were able to recoup some of their lost hours, although at a lower pay-rate, by working in Goodwill’s retail stores where there were current openings. “I have been here 30 years and seen other downturns, but this seems to be worse because it affects everybody, says Mike McBride, executive director.” On a positive note, Goodwill retail stores have slowly begun to pick up. “It’s a tough time, but one area we’re fortunate, we have the retail stores. We started to see an increase in sales at the end of 2008, which has continued through the beginning of this year where sales are up 2 percent,” says McBride. Goodwill’s eight retail stores account for nearly 60 percent of Goodwill’s revenue. [ return to home page ] |
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