Feeds

HP Ireland asks staff to vote for pay cut

Dear turkey, early Christmas?

The Power of One Infographic

HP has begun asking EDS staff to take a pay cut as part of its wide-ranging cost cutting strategy.

In a bizarre email, seen by the Reg, titled HP Salary Reduction Programme, staff from the Electronic Data Systems are asked to agree a five per cent pay cut, and related cuts in benefits, by clicking on the "I Agree" button. The mail is from Martin Murphy, MD of HP Ireland, and addressed to all HP Ireland employees.

The cuts will come into force from 1 September 2009. Staff have until 21 July to make their minds up. Not surprisingly those who have emailed Reg Towers are unimpressed with the plan and are voting No.

Some staff are being offered a 2.5 per cent cut.

The email also said that if they agree to the pay cut then they will be able to change some of their flexible benefits.

Company cars are also in the firing line - HP will no longer provide "Status cars" to new hires and people being promoted will not get a car benefit. Lucky HP execs who already have a status car will keep them.

We contacted HP to ask for more details on cost-cutting, and what the hell a Status car is, but they've yet to get back to us. However, one employee explained to us that Status cars are not specially tricked out exec rides, but simply regular old company cars.

Many UK firms are asking staff to reduce their hours, or at least those they are paid for, in order to cut costs.

HP sent us the following:

As announced in February, during the Q1 results, HP announced it will reduce employee compensation and benefits to increase flexibility in the company’s cost structure. In the UK the proposed base pay reductions are subject to the consent of those concerned.

HP statement regarding Car Policy:

In November 2008 , we announced to our employees our plan to reduce our discretionary spending as part of our ongoing focus on operational efficiencies. These actions have been taken in order to keep the company competitive in the challenging economic environment.

Boost IT visibility and business value

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
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
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
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.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.