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Hewlett-Packard on collision course with European workforce

On May 23rd HP announced plans to reduce its workforce, with 27,000 jobs to be slashed, as communicated by HP Worldwide. In response to this announcement a meeting of the European Works Council (EWC) was held in Amsterdam 12th – 14th June. Since figures are healthy for the EMEA region and no labour surplus exists there, it comes as no surprise that HP has failed to provide information on which and how sites are to be affected by the 8000-plus job cuts planned for Europe. According to the global business and technology services division of Hewlett Packard, Enterprise Services (ES), about 45% of the cuts are yet “to be determined”.

Although HP refused the EWC their legal right to be assisted by experts of their choosing thus rendering the EWC meeting somewhat unfruitful, the latest has attempted to bring HP management back to the negotiating table. The current European Works Council (EWC) agreement for HP stipulates that local restructuring processes cannot start until the European consultation and information process has been fully carried out. Clearly, the consultation process has not started, given that not even the basic information rights have been satisfactorily fulfilled.

HP management has thwarted every attempt by the European Works Council to come to a compromise. HP wrongfully claims that the EWC agreement, which clearly stipulates “the spirit and the principles” of the relevant EU 1994 and 1997 apply, exempts the company from respecting the European labour legislation. As of early July, HP began implementing the restructuring plans in the European Union, contrary to its contractual and legal obligations. In France and the Netherlands, the lay-off figures have already been communicated, and, in Spain, lay-offs have begun in the absence of any form of local consultation.

In the face of such an aggressive approach, the EWC decided, by an overwhelming 95,5% majority, to terminate the current agreement with Hewlett-Packard. HP will now have to start negotiations for a new European Works Council with full consultation and information rights under the new European Directive of 2009. Awaiting the setting-up of this new body, the European Works Council also decided to sue Hewlett-Packard for non-respect of its European obligations. Considering the old agreement was signed under Belgian law, the case will be filed with the Brussels’ Labour Court.

Uni Global Union, industriAll European Trade Union and the European trade unions are deeply concerned by HP behaviour. Only a decade ago, HP had a positive image as an innovative company which fulfilled its social responsibility. Today, the recent bad press in the USA, namely the “negative governance list” (http://www.reuters.com/article/2012/07/23/idUS169854977820120723) as well as poor financial management (http://www.nasdaq.com/article/als-emporium-h-ps-air-farce-20120723-00284) are topped off with the open conflict between management and the European workforce.

As compared to its competitors, HP is maintaining high profitability in the EMEA region. The announced lay-offs are so incommensurate with the company’s operational reality that HP EMEA management had to ask McKinsey to come up with a plan of execution for the American marching orders. The stock market driven lay-offs undermine the operational base of HP in Europe and are destined to further damage client satisfaction rates. The Trade Unions in Europe call on HP to halt its spreadsheet management and to return to its roots, which made the company successful: innovation, client satisfaction, people care and social responsibility. After years of mismanagement, HP must give the first positive signals by returning to the negotiating table, respecting the European labour legislation and remaining open-minded in order to turn around the announced plans and make HP a better company… once again.

UNI Global Union and IndustriAll European Trade Union support the EWC's decision to terminate the agreement and stands firm behind the EWC in its upcoming negotiations with company management. They are mobilizing their affiliated unions and workers to make sure that HP honors its contractual and legal obligations and bargains in good faith with the EWC.

Uni Global Union and industriAll European Trade Union will also rapidly launch an initiative towards the European Parliament and contact the European Commission for talks on the current situation of HP in Europe.

For more information, you can contact the trade union coordinator for the European Works Council of HP: Koen Dries, +32 478 566 481 – kdries@acv-csc.be