TO ALL EDS / HP PERSONNEL
The common trade union front at HP / EDS call upon you not to accept the individual request for salary reduction.
The common trade union front at HP / EDS call upon you not to accept the individual request for salary reduction.
It is unacceptable that:
- the local unions were not informed.
- the employer addresses individual employees.
- the need for this reduction is unclear and on top of the serious restructuring currently in progress at EDS.
- nothing is given in return (eg. Guarantee on job security, temporary aspect of the measure, -sacrificed pay must eventually return to the employees,…).
- the local unions were not informed.
- the employer addresses individual employees.
- the need for this reduction is unclear and on top of the serious restructuring currently in progress at EDS.
- nothing is given in return (eg. Guarantee on job security, temporary aspect of the measure, -sacrificed pay must eventually return to the employees,…).
You can’t be forced to accept this salary reduction, you have the right to refuse without motivating why.
Management confirms that saying NO to the individual request for reduction will not have negative consequences for the individual.
Above point of view will further be commented on the employee meeting of 9 March.
Please do not hesitate to contact us if you have additional questions or comments.
Common Trade Union Front EDS & HP
ACLVB BBTK LBC-NVK
Please do not hesitate to contact us if you have additional questions or comments.
Common Trade Union Front EDS & HP
ACLVB BBTK LBC-NVK
Belgium
5 comments:
91% of N0 ! in France :
http://cftchp.blogspot.com/
Just say "No!"
Too bad that U.S. employees have no say. Well, bad for the employees, and great for mgmt.
Guess what? U.S. employees--for a limited time only...hurry!--get an ADDITIONAL 10% CUT for April! [15% for those already taking a 5% cut March 16th onward] Can't you just see the gleam in the exec's eyes as they contemplate hitting their profit targets and pocketing all of those shares and cash bonuses because of this boost?!
This is a really nifty idea. They should do it more often. But why be timid at 10%? Go for 25, 50% or more!
Take from the employees (with "temporary" deep cuts) and give to the execs (as they hit their quarterly and yearly targets).
It's just "good business".
From: EDS Worldwide Marketing - Communications
[mailto:EDSWorldwideMarketing-Communications@eds.com]
Sent: Friday, March 13, 2009 14:05
Subject: Additional, Temporary Compensation Adjustments
for EDS U.S. & Puerto Rico Employees
To EDS Business Unit Employees in the United States and Puerto Rico:
Since becoming part of HP last year, we have accomplished a
great deal and should be proud of what we have delivered together. Our
service excellence remains high, and we have closed a number of
significant deals. Our execution during the transition phase has been
outstanding. As we move from the integration phase into the
transformation phase, we know from experience with our own client
projects this will be the most difficult part of our journey.
Our goal is to transform the business into a future state,
which will grow faster than the market and enable us to take share
from our competitors. We will then be able to deliver above-industry
benchmark returns to our shareholders and price deals that win more
business while providing flexibility to invest in innovation,
delivering greater value to our clients.
The gap between where we are today and accomplishing our
goals is widened by the current economic climate. As a result, we need
to take temporary actions to get us through this difficult period. Our
customers expect EDS to be a financially strong partner and, as
employees, we expect a healthy company as well. With this in mind, we
announced specific actions on March 9 to reduce our cost structure and
enable the business to improve operating profit and grow as we enter
fiscal year 2010.
Unfortunately, we need to take additional action.
Specifically, we have decided to make a temporary, additional
reduction in base salary affecting EDS business unit employees in the
United States and Puerto Rico.
Base salaries for all United States and Puerto Rico
employees in the EDS business unit will be temporarily reduced beyond
those reductions previously announced by HP on February 18, as
follows:
* An additional, temporary reduction of 10 percent in
base salary effective for April 2009
* Base salary will not be reduced for employees below an
annualized, full-time equivalent income of $40,000 by this additional,
temporary action
In May 2009, base salary for United States and Puerto Rico
employees in the EDS business unit will be reinstated to the levels of
base salary effective on March 16. This includes reductions previously
outlined in HP’s February 18 announcement. While we have no plans for
an additional base salary reduction, we will continue to closely
monitor the performance of our business and make further adjustments
as required in the coming months.
We recognize these are tough actions, and you can be assured
we made this decision after much thought and assessment. We ask for
your support and understanding as we work through these very difficult
times. We are confident we will strengthen our position in a
consolidating market. We will be one of the industry’s strongest and
safest pairs of hands, trusted by our clients to solve their
technology challenges.
Sincerely,
The EDS Senior Leadership Team
March 17, 2009
To: All UK HP & EDS Employees
Employee Benefits Update
Following Mark Hurd’s announcement in February regarding the plans to optimise our cost structure we communicated information specific to the UK on 19th Feb 2009. As committed we are now providing further detail on both the salary reduction programme and UK benefits.
Salary Reduction Programme – Phase 1
As detailed in our previous message we will ask all leaders from HP manager 2 upwards for their consent to contribute through a salary reduction. In EDS this applies to all pay-banded staff. Changes will be effective 1st May 2009
Phase 1 involves approximately 700 people in the UK. Each individual will receive an email with full details including the requested percentage salary reduction and requesting individual consent to the reduction. Emails will be sent on 27th March 2009 and employees will have until 20th April to respond.
Salary Reduction Programme - Phase 2
Phase 2 relates to all other employees not included in phase 1. We will ask employees for their consent in June and salary reductions will be effective 1st September 2009.
Each individual will receive an email with full details including the requested percentage salary reduction.
Use this link for FAQs on this programme - http://intranet.hp.com/country/UK/Pages/UKEmployeeFAQs.aspx
Benefit Changes
In the UK we have been looking closely at our benefit spend and on February 26th we presented a number of proposed actions to the Employee Representative groups from both HP and EDS.
The measures being considered in this period of consultation are:
· Changes to the HP Plan (HP and Digital Sections)and EDS Retirement Plan final salary pension arrangements which will mean either an increased cost to employees or a reduction in future benefit accrual. Note that other EDS pension schemes are not affected at this time
· A reduction to the Company pension contribution for members of the HP Scheme
· A realignment of legacy-HP Car Allowances to differentiate by job type and market sector
· Eliminating the Food Subsidy at major HP sites
Details on the specific changes to your pension scheme can be found in the attached document. We have also provided an FAQ document with some more general information on the benefit changes so that the employees who are included in phase 1 of the salary reduction programme can make a fully informed decision.
Immediate Changes to HP Restaurant Facilities
As part of the move towards eliminating the Food Subsidy there will be some immediate actions to reduce costs in the short-term:
· A price (tariff) increase. This will be the first general tariff increase in HP since 2002
· A modest reduction in the number of choices available
· A review of opening hours at some sites
These changes will become effective on 30th March.
The increasingly challenging external environment means that we must aggressively manage all aspects of spend. We recognise that these changes will affect many employees but we need to make tough decisions now to build strength through a difficult economy and make the changes that will create a competitive cost advantage and fund growth for the Company.
We are sure you will have questions regarding these changes and urge you to read the attached documents which will answer many of them. Over the coming weeks we will continue the consultation process and will provide updates as this progresses. In the meantime if you have questions about these changes please talk to you manager/leader.
Thank you for your continued support as we go through this difficult period of transition.
Just found this blog and, reading what is happening now at HP/EDS, I'm kinda glad I got the "we're cutting your job" phonecall - even if it was on the 2nd day back in the new year (Happy 2009. Btw, you're outta here!!). I've not had one single follow-up call from my manager (how you doing? found another job yet? we're sorry this happened), which exemplifies the whole company's **** you attitude to its workforce. Luckily, I found a better job with better pay at a better company - quite astonishing given the current economic climate!
My advice - try looking for another job before they kick you out or drive you into the ground...there is a (better) life outside of HP! Good luck!
50 HP and EDS EWC representatives from 25 countries met management on March, 26th and 27th in London for an extraordinary European Work Councils session about the special savings measures announced by Mark Hurd.
EWC recommandation to EMEA employees HP and EDS EWCs members consider that management proposition is not acceptable :
· The current business situation does not justify the measures that management is taking and which impact mainly the mainstream employees. Should the crisis have more impact on HP, the EWC would like to discuss more balanced and fair measures (salary cut of top executives for example represent less than 1% of their total earnings). In particular EWC cannot accept that management asks employees for a definitive measures and do not make these measures temporary until the economy recovers and HP’s situation gets better.
· HP is misusing the crisis to justify the salary reduction which is actually aim at increasing the variable part of employee salary. The EWC has no guarantee that the savings will allow the company to grow and protect jobs. On the contrary, the EWC fears that the savings will be distributed to shareholders or to a few employees in a discretionary way (as shown by the distribution of an average PFR of more than 50.000 euros to managers in January 2009).
· Employees should be aware that accepting such a salary reduction will mean lowering their pension plan, vacation pay, severance packages and other salary related benefits.
· Management should resist the pressure that Senior managers may place upon them to accept the pay reduction. Managers who do not believe the salary reduction is the correct measure should be free to say “NO”.
· Just because employees or managers refuse to give their consent does not mean they do not support the company and contribute to its future.
For all these reasons, HP EWC and EDS EWC members clearly recommend that EMEA employees including managers to NOT accept the salary reduction
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