European trade unions act against compulsory redundancies

Press Information ▪ Press Information

European trade unions act against compulsory redundancies
and the cutback of benefits at HP and EDS

Demands on European action day on 13th November

Trade union and European Works Council representatives from HP and EDS have already made it clear on several occasions that they will not accept a merger of two companies merge with the aim of downsizing (see EMF press releases of 8th September and 15th October 2008). They have called on the new management to explain how and where the new merged company would grow and how this would benefit its employees. They reject the plans to lay off 9,330 workers. These plans exceed the ‘worst scenario’ expectations held by many.

Against this background, the European trade unions have decided to call on all HP and EDS workers to mobilise on 13th November in a demonstration of European solidarity against the management’s plans.

On 13th November, EMF and UNI-Europa affiliates throughout Europe will undertake local/national actions as a sign of protest against plans for mass redundancies and cutbacks in benefits. They will call for alternative solutions aiming at safeguarding jobs and securing a sustainable future for their companies.

On this day of unity and solidarity, they will call on management to:

- provide full information and proper consultation with the trade union/employee representative bodies both at European and national levels;
- recognise the employees’ right to bargain collectively and to negotiate social plans;
- stop any compulsory redundancies;
- provide a detailed plan for redeployment and re-skilling for those whose jobs are at risk and prepare for anticipated skills shortages;
- create the conditions for the establishment of a new EWC to be built on the best elements and practices of the existing EWCs.
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The EMF is the representative body defending the interests of workers in the European metal industry. The EMF has a mandate for the external representation and coordination of the metalworkers' unions and a mandate to engage in bargaining at European level.
UNI-Europa is the European trade union organisation for skills and services.

For further information please contact:
Editor, Peter Scherrer, EMF General Secretary
Isabelle Barthès, EMF Policy Advisor on Company Policy +32(0)2 227 10 12
Gerd Rohde, UNI-Europa + 41 (0)1 792 02 19 28

Letter to Mark Hurd

Mr. Mark HURD
President Hewlett Packard
3000Hannover Street
Palo Alto
CA93304 – 1185
USA

Brussels, 20th October 2008

Dear M. Hurd,

Re: HP/EDS workforce reductions in Europe

We are writing to you, as European trade union federations representing the HP/EDS workforce across Europe, and following meetings on 8 September and 15 October attended by both union and European Works Council representatives from 10 countries.

Our position is as follows:

- HP/EDS management should ensure that it meets its obligations to provide full information and proper consultation with the trade union/employee representative bodies both at European and national levels. It has failed to do this so far at European level.
- HP/EDS management should recognise the employees’ right to bargain collectively and enter into negotiations on the social consequences of their planned decision.
- HP/EDS management should not proceed with any compulsory redundancies/layoffs.
- HP/EDS management should provide a detailed plan for redeployment and re-skilling of the existing workforce in order to fill current and anticipated skills shortages as an alternative to redundancies in this reorganisation.
- HP/EDS management should create the conditions for the establishment of a new EWC which will capitalize on the best practices of each EWC agreement.

The trade unions will not accept that HP and EDS merge in order to downsize. They want the new combined company to say where and how it will grow and how this will benefit its employees.

Accordingly we would appreciate your commitment to provide the following:
- Full financial information on the savings HP/EDS wishes to make across Europe
- Full employment information for the next 3 years, including the total employee number for each year across Europe and broken down per individual countries

A detailed presentation on the future goals and development plans across Europe

The European Commission is currently reviewing the European works council Directive. We believe that the lack of full and meaningful information and consultation by HP/EDS with the trade union/employee representative bodies at European level is a glaring example of why there is a need for the EWC Directive to be strengthened.

We do hope that you will arrange for the information set out in paragraphs (a) to (c) above to be made available, by 7 November where possible.

You should understand that we are currently considering HP as a potential case to be raised with the European Commission and the European Parliament, as an example of why the European Directive needs strengthening. This is a will inevitably expose HP to unwelcome publicity.

We trust that such actions will not be necessary and look forward to your early response.

Yours sincerely,

Peter Scherrer Bernadette Ségol
EMF General Secretary UNI-Europa Regional Secretary

International Trade Union House (ITUH)Boulevard du Roi Albert II, 5 (bte 10)B-1210 Brussels
Tel: +32/(0)2/227 10 10
Fax: +32/(0)2/217 59 63
http://www.emf-fem.org/ ▪ emf@emf-fem.org
UNI-Europa
31, rue de l’Hôpital
b-1000 Brussels
Tel : +32 2 234 56 56
Fax : +32 2 235 08 70
http://www.uni-europa.org/

More information in the comments about EDS +HP employees from Germany and Italy in action again (picture above from Germany). Massive European Action Day : Novembrer 13th

Italian EDS unions already hold industrial actions (sept 22nd)

COMUNICATO STAMPA

Eds Italia. Calitri (Fiom): “Primo risultato dell’azione sindacale: un incontro con l’Azienda fissato per il 6 ottobre”. Oggi sciopero oltre il 90% e manifestazione nazionale a Roma

“Il grande successo dello sciopero odierno dimostra quanto sia profonda la preoccupazione diffusa tra i lavoratori di Eds Italia per il proprio futuro, e quanto sia stata forte la motivazione che li ha portati ad aderire all’iniziativa di lotta assunta oggi dai sindacati dei metalmeccanici Fim, Fiom, Uilm.” Lo ha detto Canio Calitri, coordinatore nazionale Fiom-Cgil del gruppo Eds Italia.

“Secondo i dati in nostro possesso – ha spiegato Calitri – le adesioni allo sciopero di 8 ore proclamato per oggi hanno superato il 90%. Un risultato già alto di per sé e altissimo se si considera che questa cifra è stata raggiunta in un’impresa collocata in un settore come quello della Information and communication technology, in cui il sindacato non ha mai avuto uno dei suoi punti di forza.”

“Del resto - ha proseguito Calitri - la convinzione dei lavoratori nell’aderire all’iniziativa sindacale è stata ben visibile nella manifestazione che si è svolta oggi a Roma. Al corteo, che da piazza della Repubblica ha raggiunto piazza Barberini, hanno partecipato infatti oltre 1.000 lavoratori, ovvero circa il 50% dei metalmeccanici dipendenti dalla multinazionale Usa nel nostro Paese.”
“L’iniziativa di lotta – ha ricordato Calitri – è stata assunta per difendere l’occupazione dai tagli che sono stati annunciati da Hewlett Packard dopo l’acquisizione di Eds, e per protestare contro la disdetta degli accordi aziendali comunicata il mese scorso dal management di Eds Italia. Lo sciopero e la manifestazione odierni hanno già ottenuto un primo risultato. Una delegazione degli scioperanti è stata ricevuta al ministero dello Sviluppo Economico che ha fissato, per il 6 ottobre, un incontro con l’Azienda sulle sue prospettive produttive e occupazionali.”

Eds Italia conta circa 3.000 addetti, di cui 2.000 con il Contratto dei metalmeccanici. I siti produttivi dell’Azienda sono collocati a Roma, Pomezia, Pozzuoli, Bari, Torino, Milano e Siena. A fine agosto, Hp ha acquisito Eds formando una multinazionale del settore Ict forte di oltre 300mila addetti. L’Azienda ha però annunciato tagli occupazionali che, a livello globale, potrebbero raggiungere le 25mila unità.

Fiom-Cgil/Ufficio Stampa
Roma, 22 settembre 2008

9.300 job cuts announced at European WorkCouncil (HP + EDS)

HP said on Thursday that its Europe, Middle East and Africa division would account for up to 9,300 job cuts over two years out of 24,600 previously announced cuts following its purchase and integration of EDS. Country numbers should be known on Oct, 6th. EWC urge Management to think redeployment instead pure workforce reduction.

HP surprises Wall Street with size of EDS job cuts

SAN FRANCISCO (AP) Extracts :

When Hewlett-Packard Co. announced five months ago it was acquiring technology-services firm Electronic Data Systems Corp., Wall Street expected big layoffs from the combined company.

But the size of the job cuts -- 24,600 jobs over the next three years, nearly 8 percent of HP's 320,000-employee work force -- came as a shock when HP laid out its plans Monday for integrating EDS.

"Today's story is kind of an eyebrow-raiser -- I was surprised at the magnitude of the cuts," said analyst Bob Djurdjevic with Annex Research.

The cuts represent HP's most aggressive cost-cutting move yet under Hurd, who engineered the $13.9 billion acquisition to challenge IBM Corp. for more of the lucrative, long-term business of helping companies manage their computing infrastructure.

Most of the cuts will come from within EDS's ranks, and nearly half will be jobs in the U.S., HP announced Monday after the stock market closed. HP said it plans to eventually add about half the positions back as different jobs in different departments within the company.

Some of the areas expected to get hit include the finance, human resources and legal departments, areas where there are traditionally overlapping duties within combined companies.

HP had not previously detailed how many employees of the combined company would lose their jobs. Before the acquisition, HP had 178,000 people and EDS had 142,000.

HP expects to save $1.8 billion per year from the cuts once the restructuring is complete. The company will incur a $1.7 billion charge in the current three-month period, its fiscal fourth quarter, for a goodwill adjustment and other costs connected to the restructuring.

At a conference with financial analysts Monday, HP Chief Financial Officer Cathie Lesjak said the EDS deal is expected to add to HP's net profit in the 2010 fiscal year.

As huge as the reductions are, they're not the biggest in tech history.

One of the biggest challenges facing Hurd has been finding new ways to improve sales at a company that last year cracked $100 billion in revenue for the first time while keeping Wall Street happy with improving profit margins.

Hurd has been aggressive about cutting costs since he was hired in 2005. His first big act was a major restructuring that eliminated nearly 15,000 jobs.

European trade unions demand full information and consultation from HP in EDS takeover

Press release :
More than forty trade union representatives from Austria, Belgium, Germany, Spain, France, Sweden, UK, Italy and the Netherlands, met on 8 September to discuss the Hewlett-ackard (HP) takeover of Electronic Data Systems Corporation (EDS) at a meeting organised jointly the European Metalworkers’ Federation (EMF) and UNION NETWORK INTERNATIONAL (UNI).

Participants expressed concerns about the possible effects on employment and working conditions of the take over of EDS by HP. They also voiced discontent about the lack of information provided by both EDS and HP managements so far.

The meeting :
1) Called on HP management to ensure full and meaningful information and consultation with the trade union/employee representative bodies both at European and national levels prior to decision-making;
2) Expressed their opposition to any compulsory redundancies/layoffs;
3) Urged HP management to provide a detailed plan for redeployment and re-skilling of the existing workforce to fill current or anticipated skills shortages as an alternative to redundancies in the event of reorganisation.

UNI and the EMF will closely monitor the impact on the workforce of any proposals expected to be announced by HP management on 15 September and with affiliated trade unions take all possible steps to safeguard the interest of the workers.
___________
The EMF is the representative body defending the interests of workers in the European metal industry. The EMF has a mandate for the external representation and coordination of the metalworkers' unions and a mandate to engage in bargaining at European level.

For further information please contact:Editor, Peter Scherrer, EMF General SecretaryIsabelle Barthès, EMF Advisor on Company Policy + 32 2 2271057UNI Head Office, Avenue Reverdil 8-10, CH- 1260 NYON, Tel: + 41 22 365 2100
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HP laying off in Corvallis

Portland Business Journal :

Eugene television station KVAL reports that employees at HP’s Corvallis plant began receiving layoff notices Monday. In a statement, the company said its imaging and printing group announced in June its plans to “realign and streamline” by reducing its business units from five to three. Some parts of the imaging and printing group “will experience reductions while investments will be made in high growth segments of the business,” the company said.

HP is reported to employ about 2,500 people in Corvallis, and 1,000 in Vancouver, Wash. The company declined to confirm these numbers. These two locations, along with a site in Boise, Idaho, are part of HP’s imaging and printing group.

Recent reports in The Oregonian and The Columbian have said HP plans to lay off as many as 300 people in Corvallis, and that some engineers and marketing employees in Vancouver could be told to find work with other HP divisions. HP is also reported to have put its 174-acre Vancouver campus up for sale, with plans to lease it back. HP declined to comment the matter.