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16 Mar 2009
HP is to cut wages at its EDS unit by a further 10 per cent, on top of the company-wide reductions announced in February.
HP said that the move will affect employees based in the US and Puerto Rico. It promised that the cuts will be "temporary" and that employees below an annual income of $40,000 (£28,000) will not be affected.
"In May, base salaries for US and Puerto Rico employees in the EDS business unit will be reinstated at the levels of base pay prior to this temporary base salary reduction," said the company in a statement.
The initial February cuts in pay and benefits came after a disappointing first quarter for HP, although the EDS division had seen growth and outperformed other areas.
HP chief executive Mark Hurd reduced his own pay by 20 per cent, executive council members' pay by 15 per cent and exempt employees' pay by five per cent.
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Do you agree?
EDS
EDS is about making money. The money motivates the management to generate profits for shareholders. It is not about customer satisfaction, providing jobs, employee morale, or quality. Only money. They would outsource the toilet bowl cleaning if it made money. The company has changed over the past 10 years, and the current management is truly awful in its employee relations and is building a strong current of resentment. However, management is financially in a position to not care. A tuly self serving and frankly incompetent bunch. Any EDS blog site is full of complaints and frankly, given the quality and bad press related to what we do, I dont understand why any company would do business with us.
Posted by: Jim Jones 27 Mar 2009
EDS US Backs UK
I'm a EDS US employee for 10 years, we do back you for a NO vote, we have no say over how much they rob for us. as for me your sending a message back to Hurd for ALL EDSers. and if you vote NO I support you and Thank-YOU. The ones that don't support you are putting their anger in the wrong place. EDSers are EDSer no matter where you are but a Turd stinks no matter where it is.
Posted by: John 25 Mar 2009
US EDS employee
I am an EDS US employee, I have worked for EDS for almost 10 years and I say Thank You if you vote NO, We have no say in what Hurd robs from us. As for me I Thank You for saying what I would say. Anyone from here (US) that says it unfair is pointing their anger in the wrong direction. Here in the US we need to unite and get in a union to. A EDSer is an EDSer no matter where you are. The only way Hurd will get the message is if every EDS and HP world wide united and said NO and walked out for a few days. But that will never happen so at least I can Thank You for sending him a message.
Posted by: John 25 Mar 2009
Remove leadership before they destroy the company
When I first started working for EDS almost 10 years ago, I was really excited and happy to work for EDS. It was a pay for Performance Company. They also gave bonuses when employees worked hard and gave 120 percent as a way to say thanks to us as an individual. But over the years and different leadership (not our group, I mean the TOP of the food chain leadership). To me and a lot of others it seems the workers have become less important and what has become most important is company profit (which I can understand) what I can't understand is the TOP leadership's greed to put as much in their pockets and take away from the ones that made the money for the company. This is what it looks like to the workers. 1. 10 years ago Performance Company that cared for its workers. 2. Over time Employee recognition day forgot about 3. Bonus taken away 4. Raises getting further apart. 5. Raises not given out for last 2 ½ to 3 years. 6. Insurance changed from HMO to PPO, so Company could save more money, but more was taken away from employee. In the name of putting our health in our control. 7. No raises for the next two years announced 8. 2 ½ to 5 percent taken away from base pay by leadership 9. 10 percent taken away from base pay by leadership 10. The workers have gotten poorer as leadership has gotten richer. Some day the board of directors is going to wake up and find that they have been replaced and Mark Hurd and Joe Eazor and their partners will be long gone with their pockets full. This has been the trend with the Dick Brown and Ron W. etc. The company will be with out the talented people it once had working for it and be all broken up. It just seems like no one cares that the Hurds are lining their pockets at the employee expense. AIG used the US Government for a bailout HP/EDS is using their employees. I guess I might be dreaming I would like to have a leader that would plant his feet into the company, stick with it for the long hall and fight for the company and his people, not his own wallet and then leave in a few years. Hopefully the Board of Directors will wake up before it's too late, and maybe someday they might have the same dream. Don't get me wrong I do like my job and I work with a great group of people, I just want to keep working with them and hate seeing the real workers that made this company what it is today demoralized and taken advantage of because of the times and leadership knows they can get by doing it to the employee. A yes vote doesn't save your job, it only means you work for less until you get let go. a NO vote sends a message. The top 6 or 9 of the leadership split 1.6 billion US $$. It's all GREED they don't care about us.
Posted by: EDSer123 22 Mar 2009
Worse than the press knows
Anybody within HP/EDS who found another HP/EDS job after being told their job was being eliminated, has most likely also been subjected to an additional pay cut. The March 13th cut was the THIRD pay cut in the last few months for a friend of mine who was "lucky" enough to find another job within the company. My friend's pay has now been cut by 25% and each time they complained, the management response was "too bad, you don't like it, go find another job, there are 60 to 80 people out there who we can find to replace you." Please sir, can I have some more?
Posted by: Mark 22 Mar 2009
Greedy Turd
Yes we had a little "Pep" rally today lead by Joe Sleazor....we are "family" we can do it....................Why the F would we want to.... to put MORE money in their pockets!! What possible motivation is there when they take a disgusting amount of the profits and try to justify it as it is their well deserved salary. Do you realize that if they did not pull those outrageous greedy salaries we would not need to take any action. How dare they have the gall to ask US - to work hard, to can bring this company back,,,,,,,,,,,we do work hard and look where it has gotten us. They just stole from us, robbed of our bread and butter! They just sit there getting fatter on our dime, doing nothing but thinking of the next load of BS they can drop on us. Hey Turd and Sleazor -news flash no one on the phone today bought it. In fact most of my office hung up 15 minutes into the bull session. This is all about your disgusting greed, and I hope the American public it smart enough to see this and not waste their hard earned money on your HP products.. Spend wisely and invest or spend your money on a respectable company. It is just so unbelievable that they can think what they are doing is justified. NO ONE needs or merits 42 million a year not even M. Turd. Maybe if he ate less he could manage on 10 million. Livermore got a 31% increase from 2007 to 2008 while everyone else got pay cuts - you figure it out.
Posted by: Carol 19 Mar 2009
EDS Europe
On this side of the pond, it looks like no one will be taking any notice of the HP pay cut. Most of the European employees have legal protection, and therefore the pay reduction is entirely voluntary. We might lose our jobs on the back of this, as HP management will not stop the job cuts until Return on Investment (the USD 13 billion they paid for EDS) targets are achieved. This is a sad time in the history of EDS, and client deliverables will no doubt be impacted by the ongoing workforce reductions. One other thing to note is that this is fast turning into a Public Relations disaster for HP/EDS Management.
Posted by: Tom 17 Mar 2009
EU must be joking Hurd
Understand US workers frustrations but the law is the law is the law. If and when (and I hope we all do) tell Hurd to stuff his pay cut then don't take the management spin that it is the EU or Australia & NZ letting its colleagues down. If we bend over and just accept it he'll be back for more. Hurd is the one with his hand in your pockets, not us - remeber that. This is about greed, preserving profits ($1.9Bn in Q1) it is nothing to do with saving the future. We've been offered nothing. If we bend over and just accept it he'll be back for more.
Posted by: My 2 Euros worth 16 Mar 2009
U.S. workers take cut. HP treading carefully with European workers
HP seems to think that they can get away with this here in the U.S. The email announcing the additional 10% cut was only addressed to the US and Puerto Rico employees. HP is still trying to get the European sector to accept the cut announced Feb. 18th. Interestingly, the Feb. 18th email from CEO Mark Hurd noted that HP Services, as a result of EDS and TS, had a strong quarter, delivering VIRTUALLY ALL of the local currency revenue growth and more operating profit than any other business. With this being the case, why should the EDS Business Unit be punished by taking an additional 10% cut. Is it fair to EDS to have to bear the burden of carrying a poorer-performing HP? What is really going on here? If HP's European workers will not take the original Feb. 18th announced, it seems that U.S. employees would have even more reason bring up that ugly "unfair labor practices" term.
Posted by: Andy Potter 16 Mar 2009
non-exempt
Also, non-exempt emloyees base pay was decreased by 2.5%.
Posted by: anonymous 16 Mar 2009
Hurd's real pay cut
If you look at Mark Hurd's compensation last year, his 20% cut isn't anywhere close. His base salary was around US$1.5m, with an additional US$24m in cash/equivalents, and another US$17m or so in stock/options etc. A total of US$42m. A 20% cut to base salary as he states is around US$300k - or a little under 1% of his total compensation. The top 6 at HP made US$142m between them last year - try to not feel too sorry for them when they all take less than a 1% cut this year. The average EDS US Worker has already had there health benefits slashed, their retirement contributions suspended, a 5% reduction in base salary, and now an addition 10% cut. Of course, HP management wouldn't shed a tear if anyone left...they'd just shift the work to India or wherever else they can that is cheaper.
Posted by: EDS in Detroit 16 Mar 2009
Mark Hurd did not 20% pay cut...
The reduction was against his annual base salary, which is a drop in the bucket compared to his gross compensation. Unlike myself and my associates, whose 5%(and now 15%) paycuts are just that... The latest pay cut for North American EDS employees is very hard to understand considering we outperformed HP, we are one the few profitable arms of the parent company, we have loads of new business to service, and we are already spread thin after last year's layoffs. They're using the current "economic environment" to veil their own greed, they've literally provided no other explanation, and have demoralized their workforce in the process.
Posted by: scr#wed 16 Mar 2009
What a shame
Come work for CompuCom! No pay cuts here!
Posted by: G 16 Mar 2009
Why should EU staff feel forced to give in
"If HP's European workers will not take the original Feb. 18th announced, it seems that U.S. employees would have even more reason bring up that ugly "unfair labor practices" term. Posted by: Andy Potter, 16 Mar 2009" EU staff have the right, nay a duty, to say "NO!" So do the Australians and New Zealanders. We cannot be bullied into accepting this. If we bend Hurd will come back for more. If Hurd spins this to US staff as EMEA people not taking their share of pain then look through the spin. It aint us picking your pockets Yanks. It's the Fat Controller. What they did on Friday is immoral and unforgiveable but that does not mean that EMEA have to let it happen to them too
Posted by: Dick Brown's Expensive Wife 16 Mar 2009