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Tech companies force workers into paid time off

Posted Nov 24 2008, 11:45 AM by Kim Peterson
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Cisco Systems and Hewlett-Packard are turning out the lights in December, forcing employees into paid time off to save money. Cisco will shut down its offices from Dec. 29 through Jan. 2, and is "strongly" encouraging workers to also stay home for three days before Christmas, according to an internal memo obtained by Valleywag.

Company-funded parties are out. The memo asks workers to celebrate in "creative ways that result in no cost to the company." Hey, how about making Christmas ornaments with leftover toilet paper rolls?

Cisco is also cutting back on hiring and employee travel. And it's carefully reviewing spending on equipment, employee training, big purchases and outside services.

Memos like these are popping up at companies from coast to coast. H-P is extending its one-week holiday closure by an additional week. Micron is making a similar move. And Dell wants employees to take five days off -- but without pay.

Forcing people into holiday vacation means employees are being paid to do no work. But that's cheaper than running a huge company at a time when most workers are gone anyway, and when nothing really gets done.

Related reading:

How bad is it? Don't ask

What's wrong with Wal-Mart CEO's move

Who gets left out of unemployment benefits?

Comments

 

How idiotic to say that sacrifices don't ruffle too many feathers if upper management is sacrificing pay/benefits in a similar manner to all the underlings...  Management is salaried while the ones they are asking to take off are paid by the hour.  Management can take two weeks off and still get paid while the workers suffer. Unions are and underlying cause of this.  Unions have driven everything up to a point where companies aren't making it.  Just look at the automotive industry in the north verses those plants in the south that aren't union.

I'd love to work for a company that required paid time off. How can you complain about that?

I work at HP and I echo Chris' sentiments that even with the belt tightening, I'm happy to be employed right now. Maybe if these Wall St. guys were so forward thinking, we'd still have that $700 B still in our Treasury!

I am a nurse and since april 2008, I have been forced to take days off without pay every month as a means for our hospital to cut costs.  Being a large hospital in the area, most nurses have lost 1-2 shifts per month as a result.  That is a large chunk of cash when you work 12 hour shifts.

Taking paid days off is a whole lot better than being forced to take unpaid days.  My boss recently told two contract employees that he wasn't paying them for a week because we were moving our office.  Both of these folks did do some work during that week (out of a sense of loyalty) and got no pay.  The rest of us worked from home and helped with the move - some more than others.  It's very refreshing to see these companies tightening their belts and trying to save a few bucks on overhead rather than laying workers off.  They should all be grateful to have a job.  

I work in a large manufacturing company. They are making us take 2 paid vacation days, even borrowed from next year for the people who don't have any. I am thankful to have a job. 5 years ago we were a struggling company. Last year we did so well we all recieved a bonus, a first. This year we are stil doing well. I trust my CEO and CFO to make the right decisions, even if they play the economy card.

Take a moment and think about all the people this is effecting. At some point we will all feel it. Be happy your only being asked to take days off and the company you work for isn't shutting down.

Our company is shutting down for all of Xmas week 1st time in the 24+ years I've been there. People whine and complain but it sure beats the hell outta being laid off if your one of the lower senority people. I'm far from being a company kiss a$$ but they have to do what they need to to make it thru this period.

I work in a large hospital in an affluent area, and a few weeks ago I and several coworkers with seniority and accrued vacation time were "strongly encouraged" to take several days off to help the bottom line.Employees who work PRN (as needed) have gone from being able to work as much as they want, to not being offered any work at all. We're told that we, and hospitals across the country, are seeing a big drop-off in insured patients seeking medical care-theoretically, they are afraid to take time off work with layoffs everywhere, and/or can't afford the co-pays.Everyone has always said that healthcare is recession-proof; doesn't look like that's true.

First, I see a lot of people saying they would rather take the time off than be out of a job. What we are not realizing is the amount that is being taken from us. First our pensions then this then that. When do they stop taking? This is the problem I have, as though the company is doing me a favor. I worked (hard) for those benefits, so shutting up and playing happy is not what created america and what made us a great industrial nation. Mismanagment and over the top pay for executives is a major problem here. This thing about year over year (yoy) profit is rediculous. No company can profit at those levels yoy. The "preferred stock" holders need to relax. It is the drive to line their pockets that causes some this. Those are the rich peoples stock, not the common stock you and I can purchase, in case you did not know. Second problem, you can't lay off half a million people then wonder why sales are down. Corporate america has been laying people to save money and this rediculous method of cost cutting is finally coming home to roost. And they are so bright, what do they do, lay off more people. DUMB! It is better to make less money per item and make it up on bulk sales than no sales. THAT is a strategy, not laying off the very people who are to buy these products.

The auto workers are not making 71 an hour that number is with all there benefits. And the 14 an hour is new hires, not existing employees.

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