mardi 12 octobre 2010

HP prepares to scrap a further 1,300 UK jobs

The Independent + Telegraph Oct 12th

HP is preparing to slash a further 1,300 British jobs and move production overseas – a decision that led one trade union to describe the company as a "butcher".

The US technology giant has announced more than 2,000 UK job losses since June. Peter Skyte, the national officer for the Unite union, said: "Despite significant profits, HP appears hell-bent on continuing to butcher its highly skilled UK workforce ... Morale is at an all-time low."

HP said the cutbacks were part of a $1bn (£629m) restructuring of its services business, confirmed in June. As part of the overhaul, it plans to axe 9,000 staff from its global workforce, while filling 6,000 new posts.

Nearly 4,000 jobs have now been shed at HP in the UK over the past two years, with the figure now set to rise to nearly 6,000 by next April, Unite said.

Peter Skyte, Unite national officer, said staff morale had hit rock bottom following "quarter after quarter" of redundancy rounds. "It is becoming impossible for the workforce to work while they have an axe continuously over their heads," he said. "Morale has slumped and it is affecting productivity."

He added: "Lax employment protection in the UK compared to other European countries means that the UK is bearing the brunt of the cuts, as it's quicker and cheaper to sack UK people and export their jobs abroad."

The world's leading personal computer manufacturer announced in June plans to cut a further 9,000 jobs worldwide as it made a $1bn (£680m) investment in fully automated data centres, although the full impact on UK jobs was not known until Monday.

Mr Skyte said: "It's not exactly a recipe for efficiency and productivity. It's been nearly five months between the worldwide announcement and the [latest] UK one."

Unite refused to rule out strikes over the latest job cuts. HP staff who are members of the PCS union and working on government contracts walked out on a two-day strike in March this year in a row over job security and pay. Mr Skyte said: "All action will be considered including industrial action."

Alex Lock, an employment partner at Beachcroft law firm, said HP was acting within the law when it came to moving the jobs offshore. "Lots of companies are basically shipping off some parts of their basic workforce functions to countries like India and Africa."
He added the trend had "accelerated" during the recession as businesses were under pressure to cut costs. "You can get people there [overseas] to do essentially the same tasks, or provide the same technical facilities, but pay them a 10th of what you'd pay them over here."

Last year HP cut more than 700 jobs in the UK as part of a worldwide reduction of 5,700 workers. The job losses were on top of the company's previous plan to reduce its global headcount by 24,600 and shrink its wage bill by 5pc.

In a statement about the latest job cuts, the company said: "HP is in consultation with the appropriate representative bodies within the UK regarding potential workforce changes which were announced June 1st, 2010. This is an initiative to transform HP's enterprise services business to benefit clients through new offerings and improved service delivery."