HP told to choose between becoming contractors with no benefits or being fired without severance

[jos]

A group of full-time workers, mostly hourly employees, were told in late July they were to become contract workers for contract agency Adecco on August 15. If they accepted the job, they would lose all accrued vacation time and PTO, all benefits, and all seniority. If they refused, they would be let go without severance.

 

The contract positions had some people taking big pay cuts. Others got pay raises. Some people who were supervisors were stripped of the title and others, some very junior, were offered supervisor positions.

 

Many of the workers in this unit refused the offer and quit.

 

HP confirmed that it was trimming its workforce by obtaining alternative jobs for workers. This is Second time this month they have used this tactic.

 

In 2012, HP said it planned to cut 25,000 people over the course of the next three years. That number has steadily ratcheted up. Last week, HP CFO Cathie Lesjak said HP would be cutting another 5% from its workforce, beyond the last target of 55,000.

 

Lesjak told Wall Street analysts that the additional cuts were not going cost HP more money.

 

 

 

 

Severance pay is often granted to employees upon termination of employment. It is usually based on length of employment for which an employee is eligible upon termination. There is no requirement in the Fair Labor Standards Act (FLSA) for severance pay. Severance pay is a matter of agreement between an employer and an employee. But i feel there is some ethical obligation and in some countries it is mandatory by law.but if the ship is sinking they can not do much..

Source: http://www.businessinsider.com/how-hp-cut-more-workers-without-severance-2015-8

 

[CydiaDash]

You missed the word "employees" in the title

[GzeroD]

Well another reason (Besides poor build quality) too not buy from HP. Really, if a company cant treat it's employees well how could I expect them to treat their customers any better?

[RH00D]

Does it say what country the employees are in? The only part that seems off is that they can be laid off without severance pay.

[Kurosaki Isshin]

HP is sinking? doubt it.

 

they probably just want more room to work with (room=money)

[Zeo2002]

In the USA, in most states, employment is "at will" and this is what can happen.

 

The amusing thing I've been told by HR when they tried to get me to sign a non-compete (technically non-solicitation with non-compete language) when I stated my worries that I'm an at will worker was "Well, we offer a severance package to help protect you.". I wasn't aware of that package and when I looked at it, the wording in the "agreement" stated "You may become entitled to receive benefits under the [severance pay] plan if, on or after the Effective Date:... and (5) you are an individual to whom the Company elects, in its sole discretion to extend the Plan." So -- what they are actually saying is "we have this little bit of carrot out here, but we never promise that we actually have to give you the carrot".

 

This is why it's extremely important for every employee to look and read what they are signing.

 

FYI: I didn't sign the non-compete (no promotion, move within the company, contract or extra money was offered), they terminated me after 4 years of service without cause and elected to not extend severance pay for me. Took me 18 months to find another equivalent full time employment, but it's still the same choice I would make - even in hindsight.

[jaggysnake57]

ha if this was the uk then they would get there severance pay....thats some bullshit right there

[Trik'Stari]

In the USA, in most states, employment is "at will" and this is what can happen.

 

The amusing thing I've been told by HR when they tried to get me to sign a non-compete (technically non-solicitation with non-compete language) when I stated my worries that I'm an at will worker was "Well, we offer a severance package to help protect you.". I wasn't aware of that package and when I looked at it, the wording in the "agreement" stated "You may become entitled to receive benefits under the [severance pay] plan if, on or after the Effective Date:... and (5) you are an individual to whom the Company elects, in its sole discretion to extend the Plan." So -- what they are actually saying is "we have this little bit of carrot out here, but we never promise that we actually have to give you the carrot".

 

This is why it's extremely important for every employee to look and read what they are signing.

 

FYI: I didn't sign the non-compete (no promotion, move within the company, contract or extra money was offered), they terminated me after 4 years of service without cause and elected to not extend severance pay for me. Took me 18 months to find another equivalent full time employment, but it's still the same choice I would make - even in hindsight.

I would have done the exact same thing. Non-compete contracts are bullshit. They ought to be illegal. Specifically because they're "anti-competitive" etc.

[GzeroD]

I would have done the exact same thing. Non-compete contracts are bullshit. They ought to be illegal. Specifically because they're "anti-competitive" etc.

I understand non compete contracts for advanced positions and management. They exist to prevent disgruntled employees from sharing confidential information about their previous employer with their new one, which could cause immense issues for the original employer.

Where I have an issue is where companies take entry level positions and force employees to sign non competes as a way of limiting their employ-ability and forcing them to make decisions they wouldn't of otherwise had too (not leaving for a better played position or pushing harder for a raise because they where afraid of getting fired and being nearly unemployable) because their experience from that job would be worthless for several years.

[Trik'Stari]

I understand non compete contracts for advanced positions and management. They exist to prevent disgruntled employees from sharing confidential information about their previous employer with their new one, which could cause immense issues for the original employer.

Where I have an issue is where companies take entry level positions and force employees to sign non competes as a way of limiting their employ-ability and forcing them to make decisions they wouldn't of otherwise had too (not leaving for a better played position or pushing harder for a raise because they where afraid of getting fired and being nearly unemployable) because their experience from that job would be worthless for several years.

Meh, I really have one motto when it comes to corporations: "f**k em".

[Zeo2002]

I understand non compete contracts for advanced positions and management. They exist to prevent disgruntled employees from sharing confidential information about their previous employer with their new one, which could cause immense issues for the original employer.

Where I have an issue is where companies take entry level positions and force employees to sign non competes as a way of limiting their employ-ability and forcing them to make decisions they wouldn't of otherwise had too (not leaving for a better played position or pushing harder for a raise because they where afraid of getting fired and being nearly unemployable) because their experience from that job would be worthless for several years.

 

My position was considered more entry level (though highly technical in nature). I had no direct reports, some internal leadership that I gained over the period of my time employed.

 

What I think you refer to for not giving previous employer information on is a non-disclosure agreement, which I completely and wholeheartedly agree and abide by. This is applicable to every level of employee and I'm fine with this.

[GzeroD]

Meh, I really have one motto when it comes to corporations: "f**k em".

For the most Part I can't argue against that but there are some companies that I like and I don't want them getting exploited because one employee went on a power trip and decided to screw them over.

[GzeroD]

My position was considered more entry level (though highly technical in nature). I had no direct reports, some internal leadership that I gained over the period of my time employed.

 

What I think you refer to for not giving previous employer information on is a non-disclosure agreement, which I completely and wholeheartedly agree and abide by. This is applicable to every level of employee and I'm fine with this.

 

I understand the non-competes for management because they can still steer the company in a direction without actually revealing confidential information. It really doesn't make senses for lower level workers unless your using it as a bargaining tactic when negotiating pay and benefits which is a grimy too say the least..

[Trik'Stari]

For the most Part I can't argue against that but there are some companies that I like and I don't want them getting exploited because one employee went on a power trip and decided to screw them over.

There are easier (and less scummy) ways of preventing that than non-compete contracts.

[Dabombinable]

Well another reason (Besides poor build quality) too not buy from HP. Really, if a company cant treat it's employees well how could I expect them to treat their customers any better?

Long story short, HP took Compaq behind the shed after buying it and shot it in the head, then they proceeded to do the same to themselves.

[Nowak]

Long story short, HP took Compaq behind the shed after buying it and shot it in the head, then they proceeded to do the same to themselves.

I still miss Compaq. Some of my first computers were by them. And then seeing what HP did to them... eugh.

[Dabombinable]

I still miss Compaq. Some of my first computers were by them. And then seeing what HP did to them... eugh.

I really miss my Compaq-HP transition of a laptop called the Presario R3000. That thing had brilliant build quality, was designed well and to this day is a far better multimedia laptop than anything from the same price range (around $1000 USD). The newer Compaq Presario CQ60 that my Grandmother has however.....*shudders* that thing is just plain bad.

[QueenDemetria]

I'm mad at HP right now, this only makes me more mad .

[Nowak]

I really miss my Compaq-HP transition of a laptop called the Presario R3000. That thing had brilliant build quality, was designed well and to this day is a far better multimedia laptop than anything from the same price range (around $1000 USD). The newer Compaq Presario CQ60 that my Grandmother has however.....*shudders* that thing is just plain bad.

I bet my old Windows 95 Compaq machine would still be running today if we didn't stupidly throw it away after we upgraded to 2000 and the Mistake Edition. That thing was built like a tank. Wish I could say the same thing about Compaq's (or HP's for that matter) more modern machines.

[HappySkyPoodle]

Wow. Good thing I didn't accept that job offer from HP.

[Dabombinable]

I bet my old Windows 95 Compaq machine would still be running today if we didn't stupidly throw it away after we upgraded to 2000 and the Mistake Edition. That thing was built like a tank. Wish I could say the same thing about Compaq's (or HP's for that matter) more modern machines.

All of the older laptops are built so much better. As for Windows ME-some features did make it a worthwhile upgrade-though 98SE was still very good (I've got the Windows 9* trio on my all in 1 installation disc)..

[Nowak]

All of the older laptops are built so much better. As for Windows ME-some features did make it a worthwhile upgrade-though 98SE was still very good (I've got the Windows 9* trio on my all in 1 installation disc)..

I had an absolutely terrible experience with Windows ME, I don't want to ever touch it again except to willingly break it -.-

 

I mean like sure it had some really neat features that are still in Windows today like System Restore and Universal Plug 'n Play, but most of my memories of it involve this screen. Funnily enough, the machine in question was an HP, which probably explains a lot of things.

[Dabombinable]

I had an absolutely terrible experience with Windows ME, I don't want to ever touch it again except to willingly break it -.-

 

I mean like sure it had some really neat features that are still in Windows today like System Restore and Universal Plug 'n Play, but most of my memories of it involve this screen. Funnily enough, the machine in question was an HP, which probably explains a lot of things.

I never encountered that at all. That being said it was me installing it, and when I install an older OS they always work as intended-no matter what hardware I'm using (though its a shame that Windows 9* doesn't support multiple CPU as I've got a server grade motherboard.

[Briggsy]

This is sad. I love HP laser printers (yes, in a weird way). Seems like the media are really turning their focus on companies that dehumanize (or appear to) their employees. 

[Nowak]

I never encountered that at all. That being said it was me installing it, and when I install an older OS they always work as intended-no matter what hardware I'm using (though its a shame that Windows 9* doesn't support multiple CPU as I've got a server grade motherboard.

Interesting. Was it something other than an HP? Because mine was an HP.