Australian EDS staff face new contracts

EDS Australia workers have claimed that the company plans to ask them to sign a new employment agreement following the company's acquisition by Hewlett-Packard. But, terms on maintaining conditions and pay remain uncertain.

"We have heard very disturbing rumours that the company is about to make new offers of employment with reduced pay," Michael Butler, director of industrial relations at the company's most active union, the Association of Professional Engineers, Scientists and Managers Australia, told ZDNet.com.au.

"It's of concern," he said. "I hope it's the rumour mill working in overdrive. We'll be seeking to meet with the company."

Other sources who contacted ZDNet.com.au about the move suggested that workers may have 10 days to accede to or reject an agreement with a new, differently named company which might be put to them sometime next month.

A HP spokesperson was unwilling to speak on the issue. "It is not EDS or HP policy to comment on internal matters relating to employee terms or conditions," the spokesperson said.

The combined company has already gone through a round of redundancies which led to about 7.5 per cent of local staff being shown the door. The company also asked local staff earlier this year if they would be willing to accept a pay cut to reduce the likelihood of further redundancies. While staff voted on that, sources said there was another round of redundancies.

"The integration of EDS is going well and customers are responding positively, with some significant local signings announced recently," the spokesperson said. EDS recently won a $190 million deal with Telstra to carry out its application development and maintenance. The Australian Taxation Office also extended its outsourcing deals for end user and centralised computing with the company.

Advertisement

Talkback 10 comments

    EDS Anonymous -- 03/08/09

    Every Day Sucks....

    Typical Every Day (does indeed) Suck -- 03/08/09

    Nothing that EDS does surprises me anymore. Their treatment of staff would make any Dickensean employer proud.
    I feel so sorry for the EDS employees that have lived with various swords over their heads for years now.

    not surprise at all Anonymous -- 03/08/09

    I've be shown the door of redundancy after relocating to canberra nearly 1 year. The truth is I was the top 3 high paid employee (incl the manager) who rejected the voluntary salary reduction request from HP. Since they would not give me the guarantee that I would be ditched if I accepted the reduction, I decided well I must just enjoy my days and months with EDS with the current salary. But it lasts 3 more months. Two days after I leave, the second highest paid employee leaves the company as he secures the contract before being ditched. I said tohim Good on you !

    Now the manager must be happy on how much money he saves for not having two highest paid employee. I can tell you more and more EDS employee are leaving or intending to leave. They are looking for another jobs . Once they have secured ones, they will say 'adios' to EDS.

    Join a union Anonymous -- 04/08/09

    Guys, get organised and join a union to fight this nonsense. The old EDS is gone, we have to fight to create a new EDS that is worth working for.

    If everyone says no to new contracts, what are they going to do ?

    New Contract J -- 04/08/09

    Guys, the things they'll try to get rid of are the R&R provision, Leave Loading, Defined Benefit Scheme.

    EDS T's and C's Anonymous -- 04/08/09

    For other big outsourcing companies Leave loading went years ago...but fight for your rights by all means...they will probably pay you out for it and then not give you a pay rise for 5 years..big brother always wins in the long run!

    New Contracts & Redundancies Mark -- 05/08/09

    In India labours gather every morning at one place called as (Labour Adda) in every city and town, and people who has some work will pick up the necessary labour and get the work done.

    In EDS it is no different, EDS employees are also treated in the same way, everyday employees come into office and try to find a work, or their time goes on bench. once an employee is on bench for 4 weeks then he will shown the door, and when the work comes back same employee is often taken back as a contractor with huge pay. This is one side on the other side, EDS management is not bothered about the service to customers, they bring people from India from their subsidary mphasis and try to get the work done to AUS and NZ contracts, people who come from India
    * does not have a business knowledge
    * does not have a proper training
    * are mostly employed before 2 weeks or 2 months before they are sent to AUs or NZ
    * does not know how to do simple things

    and to compensate and hide their weakness they start creating a lot of useless paper work which is going to cost the customer. finally the customer pays the same amount to EDS and EDS might save few peanuts at the cost of customer dissatisfaction and loss of business knowledge with the employee going out by redundancy.

    EDS is not trying to understand a simple point,
    * if you want to become a world class Company
    that should be done by world class customer service not by employee numbers.

    * this excercise of making people redundant and cost saving measures are going hit them back in big time by losing big contracts in near future due to incompetency.

    then people will start writing books titled "Rise and fall of HP" or "Learn what not to do in Management, real example of HP" and so on...

    Wake up management, don't just say in words that employees are the assets to HP & EDS give some respect to those Assests, dont throw the familes onto roads, employees curses are very bad for the company.

    who ever are initiating this excercise of redundancies will have a very ill fate in long runs, he will also come onto roads without a single cent in his pocket.

    Outsourcer Idiots Anonymous -- 05/08/09 (in reply to #320183137)

    Organisations like EDS will reap what they sow.

    Watch the redundancy get cut Anonymous -- 06/08/09

    Most things in the HP agreement are similar but some are not. Redundancy for example under HP is poor compared to EDS. EDS people agreement is 3 weeks for every year but some commonwealth bank people are on 4 weeks redundancy for every year - under HPA this will dwindle to 2 weeks for every year - a 33% reduction and a 50% reduction respectively.
    If you had 40 weeks redundancy money under EDS, you will end up with 20 and watch how fast HP will make the EDS people redundant after they sign. HP are going to ride on the EDS good name for service but will only give crap service that HP always gives.

    In addition to redundancy cut... Anonymous -- 06/08/09 (in reply to #320184319)

    EDS people agreement gives employees 13 weeks Long Service Leave (equivalent to approximately 3.25 months per 10 years), whereas HP only gives 2 months per 10 years.
    So that's a potential loss of 1.25 months worth of pay!!!!!!!!!!!!!!!!!!!

Add your opinion

Latest Videos

Sponsored content

Power Centre - Content from our premier sponsors

Blogs

  • Chris Duckett Get extensions going in Firefox, redux
    Previously on Null Pointer we looked at getting extensions working in Firefox betas, and that was great until the fine folks at Firefox changed their minds.
  • Array How reliable is IP telephony?
    Have you ever heard a weird kind of hissing, crackling or popping noise when calling someone on an IP telephony line? How rare is the phenomenon these days?
  • Array Forget the NBN, 100Mbps is already here
    Telstra and TransACT will shortly begin offering 100Mbps broadband to many customers. By moving early, the companies have not only raised the bar for Australia's broadband services, but thrown down a challenge to a government that now faces increased pressure to deliver the NBN as promised.
  • More blogs »

Tags

Back to top

Featured