Employees
at IT company Hewlett Packard look set to accept a 10 per cent pay cut which
the company asked them to consider in response to the global economic slowdown.
Hewlett
Packard hopes the pay cut will save around £70 million and help balance revenue
and costs.
Staff
will be given eight days leave if they agree to take the pay cut for the
four-month period between July 1 and October 31.
The
cost cutting scheme is a global exercise aimed at all 90,000 staff including 3,700
UK employees, who have until Monday to make up their minds.
It
covers all salary grades including part-time employees, but staff on long-term
disability leave or maternity leave will not be asked to contribute.
So
far 23,000 employees have made up their minds, with 96 per cent opting to
accept the pay cut.
A
spokesperson said, “HP is hopeful that everyone will do their part but it’s
entirely a personal decision.”
In addition HP will make 70 redundancies across
the UK. A 30-day consultation period will start on July 10 and the redundancies
will be based on the skills needed for the business to progress.
