HP staff voice their discontent over pay cut plan

Employees from UK and Europe tell Computing why they are so annoyed at chief executive Mark Hurd

Hurd: Under fire

HP staff around the world are protesting against chief executive Mark Hurd’s plan to cut their pay following a decline in the firm’s profit.

Computing reported last week that the pay decrease could affect up to 300,000 staff, with higher cuts for senior management.

But many HP employees have since contacted Computing through our web site to complain about their treatment.

“Some people within HP UK have had no pay rises for nine or 10 years. I know because I am one of them,” said an HP worker.

“Everybody has to say no to taking this cut. It will not save your job and you will have cost yourself some redundancy money when they get around to redundancies, which is a certainty.”

One Belgian employee of recently acquired subsidiary EDS said Hurd should admit he has made a mistake in the face of such a backlash.

“Don't forget we, the working force, are the motor of your HP vehicle. Do you really think it's a good idea to decrease the salaries of already underpaid and overworked employees?” he said.

Several HP workers pointed out that senior executives’ claims to be taking a higher pay cut are disingenuous when they are paid such large bonuses.

“Mark Hurd made $42.5m in fiscal 2008. HP gave him $25.4m in cash last year, including a $1.45m salary and $23.9m bonus money, according to compensation figures contained in the company's proxy,” said one employee.

“He gets $42,514,524, of which ‘only’ $1.45m is his base salary. He offers to cut 20 per cent of his base pay. Well, that still leaves him with $41,354,524 plus his stock options. In fact, his pay cut of 20 per cent is really only one per cent.”

A worker signing himself “Mr T” added: “This is the most shameful decision the high management of HP has taken.”

And another warned of the potential effect on HP’s business in the UK. “What on earth are they thinking? This will bring the firm to its knees. You now have the entire UK staff reduced to only doing the minimum effort, leaving early and generally not giving a damn what happens,” he said.

“This will soon be reflected in customer satisfaction and contracts will vanish. Someone else has to take on the contracts so people will still have jobs.”

The pay cuts were also announced after employees of HP and EDS demonstrated outside company offices across Europe last month 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.