Australia - In response to the global downturn, about 1,000 employees have been asked to take a pay cut by EDS, a Hewlett-Packard subsidiary, but with no guarantee of keeping their jobs.
Hewlett Packard, which bought EDS last year, announced in February it would slash salaries globally after first quarter profits fell 13%. In an email sent to staff in the Lockleys call centre, EDS said "cost actions" were needed in the face of the "current challenges", reported Adelaide Now.
"We greatly appreciate your understanding and support in this difficult and challenging time, and trust that your efforts to co-operate with company policies will yield positive results for the operations of the company," the company said in an email.
The email added that the acceptance of the request "does not constitute a guarantee of ongoing employment".
While EDS did not reveal the number of employees that may be affected, Australia's Finance Sector Union (FSU) estimates the number to be at least 1,000. Under the proposal, the staff would give up 2.5% of their pay and any salary-related benefits starting 1 June. FSU has urged EDS employees to reject the offer, claiming it is illegal under present wage agreements. Even if they agree to the cut, they have been told not to assume that their jobs are safe.
Debbie Black, the union's SA/NT secretary, estimates employees could lose up to SG$1,100 a year. "We believe what they are asking staff to do is not entirely legal in the current industrial relations climate."
However, Tamara Plakalo, EDS Asia Pacific and Japan executive relations manager, explained that the pay cuts would allow the company to emerge from the recession in a "powerful position".
