Job cuts at HP/EDS cast doubts over sense of takeover
On 25th September the European Works Councils (EWC) of HP and EDS met in London. The meeting aimed at presenting to the workers’ representatives the details of the reorganisation following the acquisition of EDS by Hewlett Packard and the social repercussions this will entail. Management announced 9 300 layoffs for the combined company. EDS will be mainly affected by these job cuts.
The European Metalworkers’ Federation (EMF) and UNI-Europa which are representing workers in HP and EDS are condemning the planned job-shedding claiming that it does not bear any economic and industrial relevance. In their view, the plan does not address the real problems faced by the company. It is merely a short sighted cost-cutting strategy which will deprive the company of its most valuable asset, a qualified workforce.
The EMF and UNI-Europa are calling on HP management to provide full information to the trade union / employee representative bodies - both at European and national levels – on the economic motivation behind this plan as well as the long-term business plan for the combined company. The only business intention expressed so far is to offshore most of the jobs. From the trade unions' point of view this is not sufficient to ensure a long term perspective for the company and its employees.
UNI-Europa and the EMF also urge management to ensure meaningful consultation on the planned economic and social measures. In particular they demand the HP and EDS EWCs to be consulted on employment issues as stipulated by their respective agreements.
EMF and UNI-Europa expect the companies to negotiate effective social plans with the employee representatives. It is also expected that HP and EDS offer appropriate training for those whose jobs are threatened and engage in active labour market measures to enable them to re-integrate into work as soon as possible.
They reiterate their opposition to any compulsory redundancies/layoffs and expect management to shoulder its social responsibility by providing a European-wide plan for redeployment and re-skilling of the existing workforce.
The EMF and UNI-Europa will convene a meeting of their affiliated trade unions in the coming days to discuss the situation on HP/EDS and future steps.
Italian trade unions have staged public protest agains the job cuts. See pictures.