Get ready for the benefits gut punch, Not getting into specifics but HPE HPE/CSC folks get ready for another gut punch. Your benefits are getting worse!
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Well, compared to the benefits that contingent workers get, HPE employees all have Cadillac plans, and should be taxed accordingly.
As I understand it the Bronze+/Silver/Gold/Platinum healthcare is for the newCo (merge with CSC) employees only. Those staying with HPE have the same plans as last year. I don't know though if their $$ to pay for it have went up or not. Also I think HPE keeps free short term disability while newCo people have to pay for it!
They really do not value the services employees anymore. Management just thinks they can pick a Taco Bell employee and hire them to do the job anymore. Really disgusting. When they say the benefits are on par with other companies who the heck are they comparing the newCo too? Certainly not companies like Google, Facebook, etc! HP will NEVER be able to hire decent employees anymore so they had better not let all the older workers go!
So I guess HPE is now Obamacare, with bronze, silver, gold and if you don/t want any money in your paycheck Platinum. Wow, another "incentive" to leave. I guess HPE is giving their competitors top people, like myself who actually make them millions a year on a "silver" platter - pun intended.
HPE employees (but not those going to CSC) got an email on Wednesday last week announcing the 50% of 6% 401K match that would happen only annually- if you were on the payroll. Also mentioned: LTD is now fully employee paid, after tax. They did extend dental to dependent children to age 26 and also autism benefits to dependents.
Life is much better after HPE... The 401K of my current employer... 100% match, up to 6% - vested immediately, plus a 4% extra Company contribution. My health insurance is not as good as the one I had in HPE (I work now in a much smaller Co.), but the 401K really kick @ss... It's a shame for a Company like HPE to have such crappy benefits. Just take a look at the comments about benefits in Glassdoor.com...
Watch what happens next with these 401K changes based on my experience with another large tech company that runs their 401K this way. The match will go to "employees of record as of Dec 31" and future layoffs will be timed to happen in late Nov or early Dec so those impacted do not get any 401K match at all even if they worked 11.5 months of their last year. Even for employees who survive the year, it is a huge financial benefit to the employer to keep the money in their account all year instead of yours because you miss out on a full year of growth on that balance that they get to keep instead.
You are absolutely right .. having, in effect, no 401K matching for a full year is a gut punch to those employees being "spin merged" out of existence and a benefit to mean Meg.
I'm surprised no one is talking more about the 401(k) end of year match payment. It seems like it relieves HPE of making any matches for the vast cohort of employees being spin-merged in 2017. If you're going to CSC, you probably lose about a quarter of your (reduced!) match. Software gets hit harder because it closes later in the year.
Is that right? Or am I missing something? If that's right, it's downright cold-blooded.
@2uvf HP already pulled that trick when they cut EDS staff over to HP job codes. So yes, it can be done again.
But they won't because we had amail yesterday telling us that people are our biggest asset. And they always mean that, right?
In EU can hpe change job code to lower paid one? A demotion? Across the business unit.
CSC severance package is based on length of service up to 8 weeks of pay.
@2yfr As I understand it, in the EU, they can't reduce your salary unless you specifically agree to that but everything else is fair game. I suspect they'll up the cost of things like health and cut allowances (cars, out of hours etc) and bonuses and just carry on with the pay freezes. THAT will for the plebs of course. Executive grades, being a higher form of life, will obviously need to be incentivised so will no doubt end up better off.
Four legs good. Two legs better.
Yeah I was aware that they could mess with pensions, but I don't think they can financially disadvantage us with the rest of the package. That would mean a swift resignation and constructive dismissal....(thoughts?)
See post below
Should have been addressed to @2drd sorry
@1qny People are talking from their own perspectives. In the UK we have some protections that residents of the land of the free and home of the exploited don't get.
That said TUPE will only give us so much protection and it does not cover pension provision. CSC closed their final salary scheme completely in 2010. In ES we've had reasuring mails about the position at point of transfer but I believe that anyone still covered by the EDS Retirement Plan or EDS 1994 Scheme will do well for them not to be hit once we are owned and assimilated by CSC.
Likewise with benefits. HP screwed us over on car allowances and mileage. Things like Health costs can go up at any time. Dont be surpried if they seek out some "synergies" that disadvantage employees in that area too.
1qny
How are they terminating the original contract? Toupe protects us from things like this.
Why would anyone work at CSC. It sounds like crap, and only seems from the comments will be worse when you get together with HPE. Why stay, there is so much well paying work with companies that actually care?
@1ftj - A merger of this type creates a new Company under a new financial/legal entity, so all HPE & CSC "ex" employees become part of the new one under it's new terms and conditions. Technically (and in legal terms), your existing benefits are not eliminated or modified. You will be terminated from your current Company, and re-hired by the new formed Company. Of course, they will honor years of service, etc., but that is not a requirement. It's fully optional, and it is considered a "new hire benefit". That's one of the key differences between an acquisition and a merger from a legal standpoint.
Let's see them try that in the UK..
Yes it is legal and agreed it can skew the numbers. The new CSC policy went into effect Sept 1st 2016. One can only speculate it was done to avoid vacation payouts when the upcoming layoffs occur. They are still legally obligated to pay you for the days that you previously had accrued. Also the CSC severance pay is two weeks irrespective of your length of service.
Not surprised by the insurance but the 401k policy is different. That way of handling vacation time though, the effect would give shareholders skewed numbers as it would lead to liabilities not counted right I would think. I would question the legality or at least whether it was good with GAAP.
That's already happened at CSC which started in 2014. 401(k) match only occurs at the end of the year and if you're still employed . Also had a massive increase in health insurance premiums which occurred at that time. Most recently CSC has eliminated vacation accrual. You no longer accrue any paid time off. Our "leadership" has tried to spin that into a positive saying that you can have unlimited vacation per your managers approval. You just won't get paid for anything when you get laid off. Their version of unlimited vacation is that you're allowed to take up to two weeks with managers approval. Of course if you don't hit your utilization target you're gone, and if you're on the bench you're gone. Since there's no longer any minimal amount of vacation you're entitled to the net effect is you don't get any vacation. Welcome to CSC
Except it's not a rumor, 50% match up to 6% for 401(K) contributed at end of year instead of quarterly.
Yep. It's a well known rumor going around... 401K matching reduction, and BIG changes in the health insurance (higher employee contribution & deductibles all over). That's not even counting the elimination or reduction on some perks that were optional, but nice to have...