News

Credit crunch not the problem for computer giant – short termist greed is the issue says Unite



Unite, the UK’s largest union, is calling on IT giant Hewlett Packard/Electronic Data Systems to rethink its decision to cut 3,400 jobs in the UK over the next two years. The union is warning the company that its remaining workforce will be working under dangerous levels of stress and that service to customers and clients may suffer.



Unite wants the company to develop a business strategy for long term growth rather than short term slash and burn indiscriminate cost cutting.



Peter Skyte, Unite national officer, said: “This is not about the credit crunch taking its toll again. HP/EDS are cutting a quarter of the UK workforce because this already rich company wants to increase its profits by indiscriminately cost cutting. In 2008, HP's profit rose 15 per cent to $8.3bn, sales climbed 13 per cent to $118.4bn and it is outrageous that HP Chief Executive Mark Hurd's 2008 compensation rose by 31 % while his workforce is being forced to make huge sacrifices.”



Unite is also warning the company that by cutting workplace levels to the bone, remaining workers will be in danger of developing stress related illnesses.



“It is always terrible to lose your job. But there are also serious implications for those who remain in their jobs and carry on service to customers and clients. Skeleton levels of staff will lead to stressed out workers who struggle to complete an ever increasing workload, The fact that the company is still retaining nearly 2,000 temporary staff and contractors merely adds insult to injury,” added Peter Skyte.



Unite members are also demonstrating outside the company site in Bristol, as part of a European day of action organised by trade unions across the company with events happening in Austria, Belgium, Italy, Spain, France and Germany.

-ENDS-



For further information please contact Peter Skyte on 07768 931 302 or Ashraf Choudhury in the Unite Press Office on 020 7420 8914 or 07980 224761.



Notes to Editors:

The EDS entity with 14,000 employees out of the combined HP/EDS 20,000 in the UK is bearing the brunt of the job cuts with around 3000, going on for 25% of the workforce. This is the pattern elsewhere across Europe, where the services businesses are being targeted, as part of an expanded off shoring strategy. In addition, HP/EDS has refused to use some of the customary measures to reduce the impact on the permanent workforce, such as natural wastage and significantly reducing the number of contractors and temporary employees.



Unite is particularly concerned about the continued off shoring of service jobs on the UK's knowledge economy. Having experienced the demise of the manufacturing sector and the creation of the service economy the union is now witnessing the off shoring of the very jobs that were designed to replace the manufacturing sector.



Unite is also calling on the government to create a level playing field for employment rights and protection. The job cuts planned by HP/EDS represent the latest example of the disproportionate effect faced by UK workers compared to employees in most other European countries as the government’s light touch approach on regulation and employment legislation means that it is quicker, cheaper and easier to axe jobs in the UK. Over one third of the total European job losses in HP/EDS are planned for the UK, and no other country in Europe appears to be facing the severity of the job cuts.



HP/EDS has offices throughout the UK, including Belfast, Birmingham, Bracknell, Bristol, Derby, Cheadle, Hook, Camberley, Erskine, London and Warrington.