HP along with many other computer makers has been hit hard by the poor global economy. Some computer makers have announced losses over the last several quarters with many of the firms reporting their first loss in many years.
HP has fared better than many and has still reportedly posted revenue growth of a modest 1%. A workers union for high-tech workers in the UK called Unite has released a statement today expressing astonishment that HP has announced it plans to cut the salary of 300,000 of its global workers.
The reason the union is shocked about the announcement is that HP didn’t post a loss; profits still grew. According to the union, HP reported its numbers for the first quarter of 2009 and had a revenue growth of 1% amounting to GBP 20B and profits of GBP 1.3B.
Unite national officer Peter Skyte said in a statement, "UK employees who have made a key contribution to the doubling of the HP services revenue and borne the brunt of redundancies in Europe will be astonished that a company that is increasing revenue and still making substantial profits is seeking a pay cut from its UK workforce. Whilst the basic pay of senior executives is being cut, they will more than make up any reduction in basic pay by increases in their executive bonuses brought about by reductions in everyone else's basic pay."
Skyte goes on to say that HP has told the union that pay reductions will be made only with employee agreement and that coercion won't be used. The union says it is waiting to get those claims in writing. HP announced this week that its profits has dropped by 13% and cut its 2009 forecast.