HP forces swingeing pay cuts on EDS staff

HP is asking US based EDS staff to take their third pay cut of the year - this time as much as 30 per cent of their salaries.

Staff in the UK and Ireland have already been asked to take cuts of up to five per cent, and have also been encouraged to take unpaid leave over the summer.

But The Dallas Morning News reports that EDS workers are being asked to take a third pay cut this year. In February wages were cut between 2.5 per cent and 20 per cent. In April, all US and Puerto Rico based staff had to swallow a further ten per cent reduction in pay.

HP said the most recent cuts were necessary in order to get EDS pay in line with HP's and would not hit all staff.

One of several unhappy EDS workers told the paper: "I know that my career with this company is coming to an end. I can't survive after this kind of hit."

EDS staff on this side of the pond have seen cuts in canteen subsidies, pension and car allowances as well as pay cuts.

In more bad news for the ink giant, it emerged today that problems with its in-house commission system, Omega (inherited from Compaq), mean that about 2,000 of its top sales people are not getting the right monthly commissions. And they've been getting the wrong amounts for most of the year, according to The Wall Street Journal.

The paper has seen a string of emails apologising to staff for the pay problems which began in November. On the 8 June an email promised a final fix to the system. Four days later a further email apologised again for continuing problems. HP told the paper it had problems with an application but: "we expect to have this resolved shortly...".

HP sent us the following statement: "As part of the EDS integration process, a project was undertaken to ensure that employees in both EDS and HP, holding the same roles, receive comparable compensation based on market rates. While pay will not be impacted for the majority of employees as a result of this process, some employees will receive pay reductions while others will benefit from salary increases.

We understand that these changes personally impact our employees and we are working closely with them during this transition. EDS is an integral part of HP’s long term strategy to provide more services and solutions to our clients."

http://www.channelregister.co.uk/2009/08/06/eds_hp_paycuts/

HP Warns Worried EDS Workers: Don't Go to Media

EDS employees in Plano are comparing their job security to that of an undrafted rookie trying to make the Dallas Cowboys roster.

Andy Mattes, the senior vice president of EDS Americas, addressed employee concerns about salary cuts and layoffs -- and warned workers not to talk to the news media -- in a podcast obtained by NBCDFW.com.

"A., this is not easy, and we as a management team appreciate that," Mattes said in the podcast. "B., if you're impacted, that is painful, and there is nothing that I can tell you that's going to make that pain go away."

Mattes began the employee town hall with a "legal disclaimer" that "anything that I do or say may or may not resemble the truth when it comes to forward-looking statements."

HP: If Leaks Continue, "You'll Get Whitewashed Statements"
HP: If Leaks Continue, "You'll Get Whitewashed Statements"
WATCH

HP: If Leaks Continue, "You'll Get Whitewashed Statements"

Mattes also urged employees to not speak with the media about their concerns. An EDS employee anonymously told NBCDFW.com last week that his salary was being cut by one-third.

"People have been leaking stuff into the news," Mattes said. "I can only urge you to keep the conversation that we're having here amongst ourselves. The more we can keep it amongst ourselves, the more open we can talk. If we have to get the feeling that everything that we do will show up in the newspapers tomorrow, you'll get whitewashed statements."

But several EDS employees said they feel information is already being whitewashed for themselves, as well as customers and potential clients. They said the warning against speaking to the news media is intended to keep issues of morale and the potential impact on customers quiet.

Employees say morale is low, anxiety is high and productivity is down as many workers spend part of their days on task and part of it searching for new employment.

Workers said they fear every day that they will receive a tap on the shoulder -- or an e-mail -- informing them their services are no longer required.

Hewlett-Packard, which bought the company last year, is relocating 150 information-technology jobs from North Texas to cities such as Austin, Houston and Atlanta.

"HP will transition IT resources from Plano, Texas, to other locations..." the company said in a statement. "All affected will be given the opportunity and financial support to relocate to other HP offices."

But employees described it as a take-it or leave-it offer from a company that is asking some employees to risk relocation while at the same time cutting salaries of EDS workers up to nearly 50 percent in some cases.

In the podcast townhall meeting about the company's new job architecture, Mattes said 20 percent of HP-EDS employees regionally have been impacted by the salary cuts.

He repeatedly said the changes are painful, but necessary and would have been worse years from now if the company had not taken steps to restructure in this economy.

HP spokesmen confirmed the 150 job relocations but offered no comment on Mattes' statements in the podcast or on questions about cuts and other issues.

Source:
http://www.nbcdfw.com/news/business/HP-Warns-Worried-EDS-Workers-Dont-Go-to-Media-53188707.html