Staff at HP's EDS unit are facing a third round of pay cuts in a year as the
company seeks to further economise, according to local media.
HP
announced
salary cuts in February ranging from 2.5 per cent to 20 per cent, with top
executives taking the biggest cuts, and an across-the-board
cut
of 10 per cent for one month in March.
An additional round is planned that will reportedly see some staff losing 30
per cent of their salaries. The move has provoked anger and despair.
"I have been with EDS for almost 15 years, and the pride I once had in being
a part of this organisation has slowly and now surely become embarrassment and
disgust," a staff member told the Dallas Morning News.
"I know that my career with this company is coming to an end. I can't survive
after this kind of hit."
There has been tension over wages ever since HP took over EDS. HP chief
executive Mark Hurd said in February that he would take a 20 per cent cut in his
salary, but his $1.45m (£866,000) pay packet in 2008 made up a tiny proportion
of his total annual compensation of $42.5m (£25m).
HP has said that its actions are designed to ensure that the company hits its
financial targets, and will eliminate the pay disparity between staff at EDS and
HP with the same experience and job positions. HP has said in the past that it
is better to cut pay than make people redundant.
At present the pay cuts appear to affect employees in the US and Puerto Rico,
but overseas staff may also face wage pressures, depending on whether local laws
allow HP to arbitrarily cut staff.
HP reported a net profit of over $1.7bn (£1bn) for its second quarter this
year and will announce its third-quarter results on 18 August.
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