• by Erik Sass  @eriksass1, March 2, 2010

In another sign that the newspaper business may finally be emerging from a prolonged decline, Gannett Co. revealed Monday that the company's U.S. Community Publishing division is ending its wage freeze on April 1, lifting a year-long hold on raises for employees of Gannett's local newspaper operations.

The news was announced in a memo to employees by U.S. Community Publishing President Robert Dickey, posted on the Gannettoid blog.

The company had indicated in January 2009 that it was prepared to lift the wage freeze at the end of March 31, exactly a year after the freeze was first implemented.

The end of the wage freeze delivers some much-needed good news to employees of the nation's largest newspaper publisher. In February, the company announced that the wage freeze at its national flagship newspaper, USA Today, would continue through the second quarter. Gannett also said that USA Today employees would be asked to take another week of unpaid leave in the second quarter.

Gannett said its total fourth-quarter revenues fell 14.4%, from $1.7 billion in 2008 to $1.5 billion in 2009, while operating expenses dipped 16.2% to $1.2 billion (not counting a $4.5 billion non-cash impairment charge in the fourth quarter of 2008).

The fourth-quarter revenue declines were largely the result of a 17.9% decline in newspaper ad revenues from $963 million to $791 million. Full-year revenues fell 17.1% from $6.8 billion in 2008 to $5.6 billion in 2009.