NZ law with regards to pay cuts?

[Hemex]

Ok... so HP bought over the company I work for (which is a US based company called EDS - we handle all Telecom, Fonterra, All the banks datawarehousing and IT requirements for some) for USD 14 billion sometime last year...

This morning there's an email from HP's CEO, Mark Hurd, to all employees saying that due to not meeting expected levels of revenue... EVERYONE, worldwide HP, EDS, and whoever the fuck else HP owns, is going to get a 5% pay cut.. He's taking a 20% cut..Take it the hardest, like a true leader (insert Tui ad) Yeah Right!
Have a look at his earnings last year..
According to my calculations... hes only going to get 34.1 million a year now... oh woe is fuckin me... It'll take me the next hundred odd years to go close to what he earned in that one year!!

So, how (if it does...which I really hope so) does NZ law protect its employess from such dastardly acts?
Is this even fuckin fair?!

[Devil]

My brother works there too and I had the exact same discussion with him on Friday.
They cant cut your pay in NZ without agreement from you.
However, if people dont agree to have their pay cut, guess who's going to be on the redundancy shortlist!

[Devil]

Oh, while i'm here. that 20% cut of his is probably just to his base pay rate, which is 1. something million, not the 30 something million in bonus payments...

[Mully]

They cant cut your pay in NZ without agreement from you.
However, if people dont agree to have their pay cut, guess who's going to be on the redundancy shortlist!

Exactly what I was going to say. They can't unilaterally change the terms of your contract without you agreeing (in writing)

But yeah, you might get on the list if you don't agree.

Maybe time to dust off the old CV.

[Hemex]

Well thats good to hear... CV, here I come...
Being made redundant = 3 month pay out... one should hopefully line up a job in time for that... Have to wait and see..

[Hemex]

My brother works there too and I had the exact same discussion with him on Friday.
They cant cut your pay in NZ without agreement from you.
However, if people dont agree to have their pay cut, guess who's going to be on the redundancy shortlist!

Does he work in Smales Farm?

[Ixion]

The email is a worldwide one, which will not have taken any account of NZ employment law. It is very improbable that the CEO has ever heard of NZ let alone know that HP owns a company here.

Ask your HR department (or some more intelligent manager type person if you have one), what the EDS response is going to be)

Is your payroll processed through the States (unlikely) or locally. If locally states won't even know what people are getting paid individually

But,a s noted, NZ law does not allow a unilateral forced pay cut.

[Hemex]

The email is a worldwide one, which will not have taken any account of NZ employment law. It is very improbable that the CEO has ever heard of NZ let alone know that HP owns a company here.

Ask your HR department (or some more intelligent manager type person if you have one), what the EDS response is going to be)

Is your payroll processed through the States (unlikely) or locally. If locally states won't even know what people are getting paid individually

But,a s noted, NZ law does not allow a unilateral forced pay cut.

EDS is an american company... was #1 on the Fortune 500 IT companies... he might know that the company has a foot here after spending 14 billion to acquire it..
All our bonuses and pay rises are processed through the head office in Plano, Texas..
Although yours thoughts on his knowledge about local law.. very true!

Payroll keeps responding with 'we'll get back as soon as we hear something concrete'...Thought I should ask the knowledgeable ones..so here I am on KB

[Devil]

Does he work in Smales Farm?

Yer, Level 2.
Asia Pacific Integration Engineering - GM
IE-GM Identity and Access Management

[Skyryder]

My advice is (if your are willing to accept the cut)t put a time frame on this so that there is an expiray date and your wages will return to precut levels.


Skyryder

[mashman]

I used to work for HP... never again... but the guys i knew had the bonuses stopped last year and knew about the pay cuts last year... A chat was had with some of the senior management for Asia Pacific (Hurd but not seen was in the building) and the reason for them failing in NZ (despite the fact that BA's did DB design, Architects coded and Managers did nothing but feather their nests). It turns out that they applied the American business model to the NZ market... hmmmm... which means that they apply a 3:1 (business:employee) hourly rate... I've seen the papers personally and it's just not viable over here...

Get out if you can... It'll only get worse once the management get their teeth into the workings of EDS... I only know 1 guy that stayed and he's talking about leaving... Failing that enjoy your pay-cut, but ask them about E-Awards for salary top up (just don't tell anybody els about them )

[Max Preload]

My advice is (if your are willing to accept the cut)t put a time frame on this so that there is an expiray date and your wages will return to precut levels.

Might be tricky if they're on a collective contract.

[mikeey01]

In a nut shell....

Under present legislation they cannot do that.
Under present legislation they must prove they need to make cuts. i.e. open the books up!

Take a look through these web sites, if you should be able to find some info that will help. My lunch is over, gotta go back to work, I'll check back when I'm home later!

http://www.legislation.govt.nz/

http://www.ers.dol.govt.nz/publications/era_info.html

[Hemex]

My advice is (if your are willing to accept the cut)t put a time frame on this so that there is an expiray date and your wages will return to precut levels.


Skyryder

Thanks for the advice mate... I'm looking to go elsewhere... This place is just a fucking waste..If I cant get another job by the time they bring the cuts in... If I dont get a job by then, I'll have to see what the flipside is for not agreeing to it... Most likely to be redundancy and If I still dont get another job... Guess ill have to take the cut...can't go without a job as the mortgage payments have my balls nailed to the fence!

Might be tricky if they're on a collective contract.

What is a collective contract?

[Max Preload]

What is a collective contract?

Two or more people can form a union and collectively bargain for their employment contract. If you're a union member of some sort, they have sometimes negotiated an agreement which covers all members of the union and if you are party to that changes will require a great deal of work. I'm not sure if you have to be party to collective employment if you're a member of the union who made it.

I don't know that much about the details as I'm self-employed, but I gather that's the general jist of it.