EDS boss: pay cuts will be voluntary for ANZ staff

In the US, HP and EDS staff took an immediate 5-20% haircut. But in Australia and New Zealand, employees are being asked to voluntary sign on to the salary reduction.

HP, which finalised its takeover of services giant EDS late last year, announced a global plan to reduce salaries on February 20. The cuts were pitched as a manoeuvre to avoid mass layoffs across both companies.

Chief executive Mark Hurd led the world wide pay-packet trim across HP/EDS, losing 20% of his own salary. Members of the company’s executive council took an immediate 15% haircut; other managers got a 10% trim and regular staff 5%.

Speaking at a media and analyst briefing in Auckland this morning, EDS Australia and New Zealand managing director David Caspari (pictured) said while the pay cuts had taken immediate effect in the US, other countries had different labour laws, preventing a blanket roll-out of Mr Hurd’s plan.

In Australia and New Zealand, HP and EDS staff are being asked to voluntarily sign on to the pay cut plan.

Asked if he had volunteered, Mr Caspari replied “Absolutely. Ten per cent.”

Mr Caspari says he is pitching the merits of the pay cut to EDS staff as a measure “to get the company’s cost structure where it needs to be." EDS is also talking to unions on both sides of the Tasman, but EDS New Zealand country Alfonso Gomez says that unions are much less of a factor in New Zealand than Australia.

There is no deadline for staff to sign on to the voluntary agreement, says Mr Caspari.

Merger-related redundancies to come
Mr Hurd's pay cut scheme was pitched as a way to avoid redundancies related to the economic slowdown.

Ironically, it was announced in the wake of a quarterly result that looked positively buoyant worldwide next to other big techs, and in which EDS was a star performer. In New Zealand, profit increased 64%.

But earlier, the chief executive said that around 7.5% of employees – or around 24,500 worldwide – would be laid off as HP rationalised its operations after its takeover of EDS.

Mr Caspari says job cuts in New Zealand and Australia will be in line with the 7.5% worldwide figure, and will be instigated over the three year time-frame outlined by Mr Hurd.

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Mark Hurd is taking a 20% 'base salary cut'.

as stated online at http://isitmeoriseveryoneelsestupid.com/ and on many other sites...

A 20% cut from his $1,450,000 salary - amounting to a reduction of some $290,000. In 2008, Mr Hurd also received :

$5.3m in Bonus
$12.9m in Stock
$3.4m in Option Awards
$18.5m in Incentives
$738k in Other Compensation.

Together with his HP financed home security ($256k), HP financed personal use of the company jet ($135k) and his mortgage subsidy ($71k) his total compensation for 2008 amounts to an extremely modest $42,514,524.

In real terms, this $290,000 he will be losing amounts to just over 0.5% of his total pay. Perhaps even more vulgar, he starts with over $42 million and ends up with, you guessed it, just over $42 million

Mark Hurd has a history of doing this. It is greed and a conflict of interest that he can make (in some parts of the world) employees take a pay cut that will be converted into a bonus for him due to the increased profits it generates. Bonuses should be structured so that only a portion will be based on cost cutting by pay cuts and redundancies. What ever happened to growing a business through innovative ideas? Greed is what happened!

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Mark Hurd is evil personified. EDS's profits keep HP propped up and all our beloved CEO can do is cut, cut, cut.

Performance related pay....out
Career development..out
Respect and trust...out

HP will crumble when the upturn arrives.

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nice to find some humour here - do you guys have editors at your paper? "In the US, HP and EDS staff took an immediate 5-20% haircut."

the truth is EDS are secretly slashing and burning jobs in NZ *right now* in addition to any cuts previously announced. noone in the company will spill the beans on numbers but based on every team we know being cut by 15-30% it must be 3-500 people in addition to what we lost in December. And the reason why?? did we make a loss ?? NO! NZ dollar dropped 30% so HP want EDS NZ to send 30% more US dollars.

Don't be surprised to see EDS failing SLAs and not delivering in 6 months time. There won't be any staff left.

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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 doen't save your job, It just means you work for less until your let go. Check HP jobs their are 1850 listings in China and other Asian countries. All they have to do is speak english I have nothing against Asians it the leadership that needs to be replaced. Some day maybe all of us HP and EDSers will standup and say NOMORE... The top 6 leadership made 1.6 Billion US $$ last year and now they want our money...

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