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The CSC Grinch who stole Christmas

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CSC will not be paying its employee bonuses in the UK this year.

The enterprise software and outsourcing giant has cited poor financial performance. Employees normally get a 10 per cent salary bonus for the financial year, only half of which is meant to be based on the financial performance of the firm, we're told.

Back in May the bonus was reduced to around five or six per cent. Now it seems in true Christmas spirit, the LA, California-based CSC has decided there will be nothing for UK staff, our sources say.

In a statement, CSC told The Register:

In respect of bonus payments at CSC, all such payments are of course discretionary and therefore determined by our ability to meet targets set out at the start of each year. Achieving the current years targets is challenging however, in particular given the significant investments we have made in successfully securing large scale business re-competes this year such as Schroders, MBDA, Whitbread, AVIVA and BAE Systems. All of these will provide us with a strong platform for growth going forward. The UK has benefited enormously from our extension with the NHS which, together with one or two other recent contract signings will support our growth into next year and beyond.

CSC declined to comment on the bonus reductions.

Earlier this year, a mass restructuring plan by the CSC board was launched with a view to shedding 5,000 jobs worldwide. The business review which accompanied the cuts singled out European operations for over capacity. In the UK, 1,200 were for the chop.

The Register has received dozens of emails throughout the year from current and former CSC staff unhappy at their treatment. Scheduled pay reviews were repeatedly delayed, bonus cut announcements were botched and had to be reannounced, and morale is at an "all-time low".

We'll leave the last word to one of our correspondents: "The sense of dissatisfaction is growing stronger with each blow. If the union called for industrial action, how would the company respond? The implications for any of their contracts would be significant, but for their biggest contract; the NHS, the impact is unimaginable. Perhaps the only reason it hasn't happened is because the unions and employees know the company simply could not survive such an event." ®

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