Feeds

Staff penalised for Dick Brown's failure

EDS UK pensions under fire

  • alert
  • submit to reddit

Boost IT visibility and business value

Letter This letter from Colin Sambrook
Senior National Officer of the Public and Commercial Services Union was published in the weekend edition of The FT (Mar 29/30). We republish it with permission from the PCS.

You have recently reported on the turmoil in EDS, including the departure of Dick Brown, who will receive a $35 million severance package. EDS has considerable involvement in UK government work, including provision of IT services for the Inland Revenue and other government departments. Many civil servants have transferred over to EDS as their employer, and other EDS staff work on company contracts without that protection.

Whilst Dick Brown will receive his full contractual entitlement on his “retirement” from the company, my union is concerned about the position of other employees. EDS are proposing to change pension arrangements for new employees from a final salary scheme, as enjoyed by Dick Brown, to a purchase scheme, which means that employees will only be entitled to a pension based on the value that their contributions have earned.

What concerns PCS is that Dick Brown’s pension terms are not being replicated throughout the company. Those working on government contracts throughout the UK would not get the same severance terms as he enjoys, unless they have the protection of TUPE terms.

Dick Brown was seen as the key to EDS’s success when he was taken on, so his terms reflected that. But whoever drew up his contract of employment deserves to be brought to book for failing to ensure that there were any penalty clauses. Some of our members are being penalised in the new pension proposals for Dick Brown's failure, which is simply unfair.

It makes the company look bad. It undervalues our members’ contribution to the company’s successes. It makes them bear the financial burden where the company fails.

Yours sincerely,

Colin Sambrook
Senior National Officer

Related stories

EDS fires Dick Brown
Dick Brown: Action, urgency, excellence!
The price of failure: $35m

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.