HP cuts pay of global workforce

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HP cuts pay of global workforce

Rebecca Thomson

The Unite union has said it is "astonished" at HP's proposal to cut the pay of 300,000 workers worldwide.

HP reported its first quarter results for 2009 today, which included revenue growth of 1% compared to last year to £20bn and profits of £1.3bn.

The company says it will cut the pay of its entire global workforce by up to 5%, with more for senior executives. The CEO will take a 20% pay cut, executive council members 15%, other executives 10%, and the rest of the company by either 5% or 2.5%.

Peter Skyte, Unite national officer, said "UK employees who have made a key contribution to the doubling of the HP services revenue and borne the brunt of redundancies in Europe will be astonished that a company that is increasing revenue and still making substantial profits is seeking a pay cut from its UK workforce."

A spokesperson for HP said, “While the actions that we are taking today are difficult, we believe they will allow us to emerge from this recession in a powerful position to create value for our customers, employees and shareholders over the long term and be in a better position to fund 2009 bonus programs.”

Skyte said the union would be seeking assurances from the company that any pay reduction would only be with employee agreement.

HP has recently come under fire from the union for the way it handled its acquisition of EDS and resultant redundancies.

HP acquired the company in May last year.

 

 


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