The country I am working initiated works council negotiations.
Impacted positions is about 16%.
The process will start next week and finish by end of February.
16 replies (most recent on top)
You make a very important point ... " the reputation of the company, which would incur significant damage if HPE is labeled as a typical rude American hire and fire company". That threat of losing face is stronger than labor laws. In the US, they have already lost face more than a decade ago. HPE is no longer sought after by young energetic brilliant college grads. Bright minds that remain are steadily leaving the company. The management knows there is nothing more to lose if they lay off people in hoards without paying any severance, or paying just a pittance. The result is what you are seeing played out.
"Switzerland: Strong labor laws that cannot be circumvented by mean companies like HPE"
This is actually not true. Switzerland has one of the most liberal labor laws in Europe. (France, Italy, Germany, Belgium, Netherlands are very protective with high resulting high unemployment rates). In Switzerland an employer can give notice to an employee without having to state any reason and the contract will be terminated within 1 to 3 month, depending on years of service.
Companies must announce mass layoffs to the authorities and then there is a consultation phase to verify possible alternative options.
The severance package paid by HPE in Switzerland is voluntary and not mandated by labor law at all. The reason HPE is paying these packages is the reputation of the company, which would incur significant damage if HPE is labeled as a typical rude American hire and fire company. It would be difficult to hire because people would not want to work in such company and customers would not want to do business with such reckless companies.
So it is kind of a double standard in HPE, depending on country. Since it is quite common in the USA to treat employee as expendables, and the people would never vote for any US politician that even smells a little bit like a social democrat. The US mass hysteria about communism is still going on .
Has something changed in terms of US severance formula since end of October? At that time It was one week for and up through 11 years with 2 days for every year after. The was no cap.
Severance package info:
US - doles out chicken feed - 1 week for every year of service capped at 3 months
Switzerland: Strong labor laws that cannot be circumvented by mean companies like HPE
1/24th of the annual salary per year of continuous service, capped at 28 years.
"You make it sound as though what HPE is doing is normal and perfectly ok."
That's now what he said. He that that in the US that employers aren't legally bound to provide any severance at all. So anyone who provides any severance is being generous, at least by USA standards.
Is it OK? Of course not. But it is the reality in the US these days. And employers across the board are becoming less and less generous with their voluntary severance packages. Many offer as little as two weeks pay, Some offer nothing,
Generous? My foot. Most ridiculous comment. You make it sound as though what HPE is doing is normal and perfectly ok.
The legal system in the US is anti-labor. Plain and simple. It always favors all these loser companies out there and their management that is constantly looking for ways to to stick it to the employees.
And it's worth noting that in the US HP ins't legally required to give any severance benefits. The one week per year of service, with a 3 month cap is actually generous by American standards.
Sad to see the ongoing cuts going on at HPE.
That severance offer in Switzerland is way better than in the US. In the US, they can get away with anything with its highly anti-labor policies. In the US it is 1/52 of annual salary x number of years of service. There is a cap at 3 months max or something close to that.
Severance package in Switzerland is 1/24th of the annual salary per year of continuous service, capped at 28 years. So for 12 years of service you get 12/24th = half of an annual salary. For 30 years you get 28/24th of your annual salary.
Same here: Switzerland 16% of positions will be eliminated through WFR starting now in January. Problem is that it is not only overhead, but we are cutting deep into the muscle down to the bone (Pointnext service delivery).
France
What kind of severance is required by law in Ireland? In the US it is completely optional.
Ireland
My guess is, Europe. Could be any European country. That is where they have work councils.
And that country is????
What country?