HP faces more unrest over staff pay cut plan

UK employees may be able to reject proposals for global salary cut

HP wants staff to take a pay cut

HP faces the threat of further employee unrest after announcing a plan to cut the wages of its global workforce by five per cent.

The move came after the technology giant announced a 13.5 per cent fall in its first-quarter profit.

The pay decrease could affect up to 300,000 staff, with higher cuts possible for senior management.

Last month, employees of HP and EDS demonstrated outside company offices across Europe in protest at plans to cut 3,400 staff following the merger of the two suppliers. Members of the Unite trade union took part in protests in London and Bristol as part of a European day of action also targeting sites in Austria, Belgium, Italy, Spain, France and Germany.

Unite national officer Peter Skyte said HP UK staff will feel particularly hard done by if they are affected by the proposed pay cut.

"UK employees who have made a key contribution to the doubling of the HP services revenue and borne the brunt of redundancies in Europe will be astonished that a company that is increasing revenue and still making substantial profits is seeking a pay cut from its UK workforce,” he said.

“The company has today told us that in the UK any pay reduction will only be with employee agreement and that no coercion will be applied, and we will be seeking written assurances about this when we meet the company next week.”