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May 24, 2012

Unite union slams HP over job losses

Industrial action a possibility as Unions fight proposed UK job cuts

By Steve Evans

Unite, the UK’s largest trade union, has said it will fight any potential job losses in the UK following HP’s announcement that it will be reducing its headcount by 27,000 over the next two years.

All HP has said on proposed redundancies in the UK is: "We have not yet announced specific plans with regards to specific locations. We do expect the workforce reduction to impact just about every business and region. Beyond this, we don’t have any additional details to share at the moment.

However, the company expects about 8% of its workforce will leave. If that figure is applied in the UK, up to 1,600 workers could lose their jobs.

HP currently runs offices in Bracknell, Berkshire, Bristol, Derby, Dublin, London, Manchester and Sheffield.

Kevin O’Gallagher, Unite’s national officer for IT and communications, criticised the proposed cuts and said the technology sector is vital to the UK’s economy.

"This is a devastating blow to the technology industry in the UK – a sector we need to develop to create future jobs and growth. We will be working with the PCS union to use every means possible to protect these vital and high-skilled jobs."

He added the Unite is looking to set up meetings with HP’s representatives here in the UK and internationally over the proposed cuts.

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"Hewlett-Packard is still a highly profitable company which is, we believe, simply aiming to cut costs to increase both its market share and profits, while showing scant regard to its loyal and dedicated workforce," he added.

Peter Olech of the PCS (Public and Commercial Services) Union even threatened industrial action if HP pushes ahead with the cuts.

"We are prepared to send an unequivocal message to Hewlett-Packard that job cuts and compulsory redundancies will be resisted with every tool at our disposal, including industrial action if necessary," he said.

HP’s decision to cut 27,000 workers is a response to falling revenue and profit at the IT giant.

The highest profile casualty so far is Mike Lynch, founder and CEO of Autonomy, the UK software company bought by HP last year for nearly $11bn. He has left after a "disappointing" second quarter when Autonomy’s performance was not up to scratch, according to HP CEO Meg Whitman.

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