Cut my pay, no way - April 2009
The proposed 5% pay cut that most people will be asked to sign
up to by September has been justified by HP with reference to the
economic downturn. The alternative HP says is further job cuts. A
veneer of fairness has been added by the CEO accepting an apparent
20% cut in pay.
Looked at closely the proposed pay cut has little to do with
genuine HP hardship. For Q1 2009 the company showed revenue growth
of 1% compared to last year to $28.8bn (£20bn), and profits of
$1.85bn (£1.3bn).and there is little likelihood that in 2009 the
company as a whole will not make a profit, especially with the
extra breadth and stability provided by the acquisition of EDS in
the services market.
6 people at the top of the HP pyramid accounted for
$142,774,325 in compensation in 2008. The Chief Executive's total
remuneration package according to Business Weekly is over $42m
alone. That is an obscene amount of money.
So why a pay cut? It is not temporary and will not be made
good in a recovery, nor does it offer any guarantee of job
security. There are still plenty of jobs to be lost as part of the
merger of EDS into HP. What it does is further HP's aim of
increasing "variablised pay" - low pay supplemented by possible
bonuses. Sadly these will not be as reliable nor as generous as
those received by the HP CEO whose total cut in compensation
reduces to only 0.7% when considered in the light of his 2008
package. This pay cut of $290,000 is nearly compensated by
the $256,000 the Chief Executive receives for personal and home
security. This percentage figure could reduce
further if our members' pay cuts fuel profits.
With few exceptions most HP employees have not had a pay rise of
any significance in the past three years despite their workload,
and the company profit, increasing significantly.
HP employees who are promoted into new roles with higher
accountability, more work and more stress do not receive an
immediate remuneration increase in line with the new position.
Instead they have to wait for the yearly review which more often
than not sees them bitterly disappointed. If you are employed into
a new role in February you will wait until the end of the year for
your remuneration review..
The much touted company performance bonus has the bar set just
high enough that it’s only had two significant payouts in more than
5 years and never makes up for the loss in real pay.
In the UK, you generally cannot be compelled to take a pay-cut
unless agreed. That won't stop many people feeling fearful to
answer the question that will be put to them. But no-one is alone.
Talk with your colleagues, there is widespread opposition to this
pay cut. If asked to attend a meeting with your manager, request
that you be accompanied by a Unite representative.
Only by being organised will there be any chance to do anything
about possible further attempts to erode terms and conditions. The
evidence for this is that in the US, HP/EDS employees are having a
further unilateral pay of 10% for the month of April.
Say "No" to a cut in
your pay and join Unite.
Cut my Pay - No Way!"
ACT TO PROTECT YOUR PAY AND CONDITIONS -
JOIN UNITE - THE UNION FOR HP/EDS
