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Following HP’s warning that compulsory redundancies are on the cards, UK unions write letter of complaint to the European Commission

Unions representing workers at computing giant HP and EDS, the IT service provider it acquired earlier this year, have written a letter of complaint to the European Commission criticising the combined company’s plan to cut headcount.

It emerged last week that HP intends to shed 3,378 jobs in the UK, mostly on the EDS side, as part of its ongoing project to reduce headcount by 24,500. The company offered its workers a voluntary redundancy package, but only 663 accepted it.

“If we do not meet the synergy targets for H1 2009 through this second [voluntary redundancy] programme it is likely we will move to compulsory redundancies, subject to consultation with employee representatives and unions,” said HP and EDS management in an internal memo.

In a letter to the European Commission, unions including Unite argued that there was no good economic reason for the redundancies. “This is particularly unacceptable for a company like HP, which has just announced very good results,” the letter said.

In its most recent financial quarter, HP saw revenue increase 19% to $33.6 billion, with operating profit up 4% to $2.7 billion.

Further reading

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