HP hits UK workers with canteen, car, pension cuts
Cuts in May
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Hewlett-Packard and EDS employees in the UK who are currently bracing themselves for pay cuts can now expect to see food subsidies axed, a pension scheme shake-up and changes to their car allowances.
HP told workers yesterday in a memo seen by The Register that prices in the company’s canteens would be jacked up, fewer meal choices would be on offer and a review of opening hours at some sites was also underway.
It said the changes to its restaurant facilities would come into effect on 30 March.
Meanwhile, HP is also consulting with employee reps about possible changes to the company’s various retirement plans for both HP and EDS staff.
It has proposed that its HP Plan (HP and Digital Sections) and EDS Retirement Plan final salary pension arrangements could see changes that mean either an “increased cost to employees or a reduction in future benefit accrual”.
In addition the firm is considering a reduction in its contribution to the HP pension scheme.
HP revealed its latest efforts to keep a lid on costs as it continues to undergo a painful restructuring strategy involving the loss of thousands of jobs worldwide.
In the memo penned by HP UK and Ireland managing director Steve Gill and EDS regional vice president Sean Finnan, the company also reiterated its pay cut plans that were first announced last month.
HP said it’s seeking consent from senior managers and all EDS “pay-banded” staff to agree to salary reductions of between 2.5 and 15 per cent by 20 April. Those 700 or so UK-based employees who accept the pay cut will see changes brought in on 1 May.
The company plans to then move to a second round of salary reductions in June in which it will ask all employees in the UK to consent to a pay cut that will be effective from 1 September this year.
Late last week HP confirmed its EDS employees in the US and Puerto Rico would have their base salaries cut an additional ten per cent for April 2009 only.
It admitted some workers would temporarily suffer a second drop in pay to help HP execs steer the services outfit through tough economic conditions. UK's largest union Unite slammed the move describing it as "trigger happy management actions more akin to the Wild West in the 19th century". ®
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COMMENTS
HPs Original Brains
Left with Agilent. Now they inflate volume (but not profit) with PCs and get most of their profit off ink. I was a bit amazed they decided to milk the poor sods who bought HP printers, that is sure to boost future sales. Wait, that's next quarter, we don't care about that....
A company that develops a schism between the "management" and "workers" (as if the whole lot aren't all aren't just employees of the OWNERS) has already failed management 101. Unfortunately, that is most companies....
Mines the one with the HP41CX in the pocket, from the glorious old days.
HP Way?
What ever has happened to the inspired and enlightened HP Way that puts people first?
HP is now being a bit brutally financially engineered and in time this will impact their overall performance and quality in my view.
Can only imagine how this will impact employee morale and the constant fear such 'leadership' moves engender.
Meanwhile in the Hurd executive suite and top teams they are richly rewarding themselves with great multiples of greed.
My view of HP has changed greatly for the worse.
Yes times are tough but there are enlightened ways to do things rather than just the easy options.
HP employees and contractors be strong. This approach is just not nice or good longterm business sense.
Re: Hypocritical comments
You obviously dont work for HP. If you did you would be aware of the extreme anger around this proposed cut.
For the past 3/4 years HP has been growing at a staggering rate now becoming the number 1 IT vendor in the world, this is because of several reasons:
- HP has used its engineering know how to develop decent products the market wants and have bought by the shed load.
- Aggressive aquisiton allowing us instant access into lucrative markets where we have applied economies of scale and point 1 to bring costs down and generate high margin on the products.
- Hurd has aggressivly pursued cost savings to maximise profts and ensure a excellent source of cash for point 2, also used to rationalise engineering to focus develpment and product range only on profitable endevours leverage technologies accross multiple products and so on and so forth.
Now Hurd is effective at cost rationalisation no one questions that. Unfortunately like he did at NCR, he contsantily pushes till the boat doesnt just start leaking it implodes in a rather impressive fireball!
The cracks have been appearing for a while now, most employees have not had a pay rise for several years, the justification has been that HP is moving towards a bonus scheme; your business area does well, so do you. Slight problem with this no one south of senior management has actually seen a bones that reflects their BU performance for quite some time, there is always a way for them to wriggle out. Your BU is doing well, for the purposes of the bonus its gets lumped in with an underperforming one.
Now they turn round to us and say that because of an "under performing" economy they want us all to take 5%. Yet they have stated that when the economy returns to normal they will not be giving any financial uplift (either bonus or base salary).
Do you think that is fair or indeed hypocritical of us?
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