dpg50000 Posted February 19, 2009 Share Posted February 19, 2009 Hewlett Packard today announced the following: Pay cuts for the directors, CEO etc of between 10 and 20%. However, their bonus structure and share awards will still be there. Pay cuts in America from 16th March of 2.5% or 5% (depends on your contract), plus a reduction in the maximum amount they match in the 401(k) contributions. In addition, they've made their side of the contributions dependent on company performance, so some months they might not pay anything into the 401(k). They're implementing these cuts worldwide (where the employment laws allow). In EMEA region, they are asking the managers to "consent" to these pay cuts on a voluntary basis, again either 2.5 or 5% depending on which employment contract they're on. That starts in May. They are hoping to get the rest of the workforce to "consent" by the financial 4th quarter, i.e. August 2009. Note - these cuts are permanent - they don't plan to re-adjust salaries when things pick up. I find it unbelievable that companies such as HP never put anything away in the boom years. The first signs of trouble and it's mass layoffs (happened most of last year) and pay cuts all round. This wouldn't be so bad if I didn't know of people working there who, despite thoroughly deserving one, haven't had a payrise for 4 years or more. If this is how all companies have been run in the boom, we are in deep trouble. Quote Link to comment Share on other sites More sharing options...
ralphmalph Posted February 19, 2009 Share Posted February 19, 2009 It has got nothing to do with putting money away and everything to do with the Board and CEO making million of quid when the economy picks up. The HP board and other baords notable Cisco are saying we will work for 1 dollar a year, oh arnt we responible but for thi we all want 5 million stock options at no cost to us. So they then lower the whole cost base of the business as soon as the economy picks up the share price will rise and they will all make 10's of millions of dollars. Jut a bad as the banks really. Quote Link to comment Share on other sites More sharing options...
REP013 Posted February 19, 2009 Share Posted February 19, 2009 5 - 10% I thought. They've just bought EDS too who will have to do the same. Also stopping their discounted share save scheme in May. If the plan is to go company wide that's a lost of people and lost revenues for UK and US government. Quote Link to comment Share on other sites More sharing options...
dpg50000 Posted February 20, 2009 Author Share Posted February 20, 2009 5 - 10% I thought.They've just bought EDS too who will have to do the same. Also stopping their discounted share save scheme in May. If the plan is to go company wide that's a lost of people and lost revenues for UK and US government. It's capped at 5% for regular employees, and yes they are planning to go company wide with it (including all EDS staff). Quote Link to comment Share on other sites More sharing options...
qwe3333 Posted February 20, 2009 Share Posted February 20, 2009 Is that possible in Europe? I think some would prefer being laid off. Quote Link to comment Share on other sites More sharing options...
DrGUID Posted February 20, 2009 Share Posted February 20, 2009 This all helps the deflation story. HP have been doing pretty well of late though - they've pulled the rug from under Dell's feet on a lot of large corporate contracts. Quote Link to comment Share on other sites More sharing options...
spivT Posted February 20, 2009 Share Posted February 20, 2009 Hewlett Packard today announced the following:Pay cuts for the directors, CEO etc of between 10 and 20%. However, their bonus structure and share awards will still be there. Pay cuts in America from 16th March of 2.5% or 5% (depends on your contract), plus a reduction in the maximum amount they match in the 401(k) contributions. In addition, they've made their side of the contributions dependent on company performance, so some months they might not pay anything into the 401(k). They're implementing these cuts worldwide (where the employment laws allow). In EMEA region, they are asking the managers to "consent" to these pay cuts on a voluntary basis, again either 2.5 or 5% depending on which employment contract they're on. That starts in May. They are hoping to get the rest of the workforce to "consent" by the financial 4th quarter, i.e. August 2009. Note - these cuts are permanent - they don't plan to re-adjust salaries when things pick up. I find it unbelievable that companies such as HP never put anything away in the boom years. The first signs of trouble and it's mass layoffs (happened most of last year) and pay cuts all round. This wouldn't be so bad if I didn't know of people working there who, despite thoroughly deserving one, haven't had a payrise for 4 years or more. If this is how all companies have been run in the boom, we are in deep trouble. how do you know they didn't put anything away ? does the balance sheet confirm this ? sure tech companies are aggressive in acquisitions but some of the big tech companies are very cash rich, that was my understanding anyway. Quote Link to comment Share on other sites More sharing options...
this_prisoner_is_opting_out Posted February 20, 2009 Share Posted February 20, 2009 (edited) Yes it will be implemented for EDS staff. Yes, they turned a profit Q1 - however obviously they're not selling hardware and that made a loss. No, they're unlikely to get it past many EMEA governments - not so sure about UK! Not quite sure who'd sink money in to shares right now anyway... Edit: spivtastic - they did put money away - they have an enormous amount in reserves. Edit2: Staff who lose any wages in this manner have been told that they will likely see this money back in the form of a "bonus" if HP continue to turn a profit. IMO this is just a way to appease the shareholders. E.g., EDS said "we will shed x number of jobs" - and then EDS staff working on an RBS account where in-housed by RBS. Shareholders happy - people still have jobs. Edited February 20, 2009 by this_prisoner_is_opting_out Quote Link to comment Share on other sites More sharing options...
qwe3333 Posted February 20, 2009 Share Posted February 20, 2009 Just to confirm, pay cuts not legal in UK. This is gonna force others in the industry to copy HP, as it is a market leader. Quote Link to comment Share on other sites More sharing options...
libspero Posted February 20, 2009 Share Posted February 20, 2009 Just to confirm, pay cuts not legal in UK.This is gonna force others in the industry to copy HP, as it is a market leader. Correct.. which in some ways is a bit of a shame. Personally I would rather take a pay cut than lose my job! Quote Link to comment Share on other sites More sharing options...
the primitive Posted February 20, 2009 Share Posted February 20, 2009 Just to confirm, pay cuts not legal in UK. Pay cuts are not legal? Do you really mean that? Not at all? Seems incredible. Quote Link to comment Share on other sites More sharing options...
tim123 Posted February 20, 2009 Share Posted February 20, 2009 Pay cuts are not legal? Do you really mean that? Not at all? Seems incredible. Imposed pay cuts are not legal. There is nothing HP can do to make someone work for less money if they say no when asked. If they have been employed for more than 12 months all they can do is to to make redundancies and they would be on a very sticky wicket if they only selected people that said no. tim Quote Link to comment Share on other sites More sharing options...
Errol Posted February 20, 2009 Share Posted February 20, 2009 (edited) Imposed pay cuts are not legal.There is nothing HP can do to make someone work for less money if they say no when asked. If they have been employed for more than 12 months all they can do is to to make redundancies and they would be on a very sticky wicket if they only selected people that said no. tim deleted. Edited February 20, 2009 by Errol Quote Link to comment Share on other sites More sharing options...
the primitive Posted February 20, 2009 Share Posted February 20, 2009 Imposed pay cuts are not legal.There is nothing HP can do to make someone work for less money if they say no when asked. If they have been employed for more than 12 months all they can do is to to make redundancies and they would be on a very sticky wicket if they only selected people that said no. tim I find that absolutely amazing in a market economy such as ours. I woudl far rather take a 5% pay cut than a 100% one if my company went under due to payroll outpacing cashflow. I would believe it about France, but the UK?! Jeez really amazed by that. Quote Link to comment Share on other sites More sharing options...
Unexpected Posted February 20, 2009 Share Posted February 20, 2009 In the company I work (a large oil service company) it was announced today that all contractors (me and hundreds of others) will take a 10% pay cut. Fair enough I say. Better than losing my job. Not even going to bother looking elsewhere. Quote Link to comment Share on other sites More sharing options...
scrappy Posted February 20, 2009 Share Posted February 20, 2009 In the UK they cut your hours, thus cut your pay accordingly Quote Link to comment Share on other sites More sharing options...
Ellie Posted February 20, 2009 Share Posted February 20, 2009 Hewlett Packard today announced the following:I find it unbelievable that companies such as HP never put anything away in the boom years. The first signs of trouble and it's mass layoffs (happened most of last year) and pay cuts all round. This wouldn't be so bad if I didn't know of people working there who, despite thoroughly deserving one, haven't had a payrise for 4 years or more. If this is how all companies have been run in the boom, we are in deep trouble. I also know of a few people working for HP here in the uk - they are all very stressed at the mo. I too find it staggering how quickly companies are succumbing. It is evident that hardy anyone has been investing any returns from the good years in reserves, there is sod all to fall back on and this is just in the first six months! We've only just started and they are going down like dominoes. Presumably it's all been spunked on bonuses for the directors and divvies for the shareholders. Just like the rest of the population, not a bean put away for a rainy day. Quote Link to comment Share on other sites More sharing options...
sleepless Posted February 20, 2009 Share Posted February 20, 2009 In the company I work (a large oil service company) it was announced today that all contractors (me and hundreds of others) will take a 10% pay cut.Fair enough I say. Better than losing my job. Not even going to bother looking elsewhere. I would expext the majority of contractors are working through agencies, rather than direct. In this case, the company cannot impose a cut directly on you - only to the agency and subject to their contract. The agency in turn must renegotiate your contract, subject to the terms of that contract. The rate you charge the agency and the rate the agency charges the company are entirely seperate. Quote Link to comment Share on other sites More sharing options...
REP013 Posted February 20, 2009 Share Posted February 20, 2009 A few things here EDS debt was downgraded before HP bought them HP are in hoc to the US gov for $millions in CP There can be no forced pay cuts on permanent staff in the UK Quote Link to comment Share on other sites More sharing options...
informa Posted March 18, 2009 Share Posted March 18, 2009 A few things hereEDS debt was downgraded before HP bought them HP are in hoc to the US gov for $millions in CP There can be no forced pay cuts on permanent staff in the UK The Register is reporting further cuts for UK workers - gonna be some very angry employees there I guess when the pay is cut and the pension and the car and the canteen etc.. http://www.channelregister.co.uk/2009/03/1...staff_in_belly/ Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted March 18, 2009 Share Posted March 18, 2009 HP, guess they are not full of beans. Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted March 18, 2009 Share Posted March 18, 2009 I remember the days when people left when HP cancelled the Friday afternoon free cream cakes. Quote Link to comment Share on other sites More sharing options...
thecrashingisles Posted March 18, 2009 Share Posted March 18, 2009 HP, guess they are not full of beans. They're off the sauce for the time being. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted March 18, 2009 Share Posted March 18, 2009 (edited) They're off the sauce for the time being. Whose the Daddies? not HP If they keep falling behind they'll soon be playing ketchup Edited March 18, 2009 by Bloo Loo Quote Link to comment Share on other sites More sharing options...
Mikhail Liebenstein Posted March 18, 2009 Share Posted March 18, 2009 (edited) Interesting story on the side of the register article just posted about HP's canteen. http://www.channelregister.co.uk/2009/03/18/ibm_buying_sun/ I presume if this happens we will see server prices shooting up. I have used a lot of Sun kit my day, mostly back in the days when Ultrasparc was king at they and up until they had boxes like the E6500/6800 and E10k. Some interesting stuff with the UltraSPARC T2 Plus processors , though more for virtualisation, ut I guess this will be less viable if the story is true. Edited March 18, 2009 by mikelivingstone Quote Link to comment Share on other sites More sharing options...
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