HP keeps EWC out of restructuring plans

HP’s takeover of EDS, the computer services company, means lay-offs throughout Europe, of mostly EDS workers. HP’s EWC does not have a precise overview of the figures and reasons, but does not exclude that HP has set its sights high.

HP wants to fire 25 000 workers worldwide, over 9000 of which in Europe: 8500 at EDS and 800 at HP. The original figure for the Netherlands was 560 dismissals. That figure has been brought down to 421 dismissals, 381 of which at EDS.

EWC member Henk van de Weerdt says that the numbers have been set by Head Office in the US and only explained in very general terms to the European management. Any attempt of the EWC to get more information, let alone be consulted, has been met with being referred to the management of the national organisations.

Van de Weerdt, who is also the Chairman of the Works Council of HP Netherlands, does not hide the fact that he feels frustrated about this and that he is looking forward to a Directive that grants the EWC more competences. But he also says that the HP European management has not always been so reserved. “We used to get a breakdown of the figures before, under embargo. But French EWC members have leaked figures in the past and the managers in different countries were not happy about this. If there are leaks, then it’s mostly by the French. They sit on the EWC mandated by their federation, they’re even paid by their federations. They repeat anything told in confidence verbatim. They still don’t understand that they compromise relations that way.”

Figures
Van de Weerdt knows that the management teams in the different countries have not simply accepted the figures that have been set. “They’re concerned about whether HP can afford those types of cutbacks.”

“Comparing the figures provided by the country managers is the best way for the EWC members to gather reliable information.”, says Van de Weerdt, and he finds that that is the EWC’s prime asset in its current form. He gets the impression that the total figures given have been increased for tactical reasons and will not be reached. There is however still a lack of clarity about some countries, like Italy.

The staff cuts at HP have at least three underlying grounds. The first is 100% about the takeover of EDS: there were already plans there to off-shore work, to Eastern Europe for instance. The second driving force is the further automation of internal company processes. This also primarily involves EDS. The effects of integration are only relevant in the third rationale. Dutch HP workers will only be affected by the latter.

The legal integration will take place in June in the Netherlands. The employee representative bodies will be merged in October.