Tech companies force workers into paid time off - Top Stocks Blog - MSN Money
 
Search Top Stocks:

Tech companies force workers into paid time off

Posted Nov 24 2008, 11:45 AM by Kim Peterson
Rating:

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

 

You all won't believe this... my husband is a designer sales associate who works at a very well know box store...that sells tools, lumber, home repair etc. etc. etc.  and his dept. managers have told him he has to triiple his sales from last year... and they said THE (*(& ABOUT THE ECONOMY!  Those managers must be worried about their bonuses - you think?

The part that bothers me so much about forced time off is the lack of notice given. If you knew that you were going to have to take some time off at the end of the year, you could save $25 (or more) a week - a relatively painless amount = $1,250 for 50 weeks - all year long and have a small slush fund to get you through the time off. You could also stash any extra income from OT, bonuses, etc. (ultimate goal would be two weeks worth of take home pay) and actually have a plan to take care of yourself.

I don't agree with being forced to use vacation/sick time for company closures, you should be given the option to take it at no pay. This is especially important to families with kids. Everyone needs some vacation time off to decompress and enjoy your family without having to worry about money for that brief time.

As I read this, I think all it takes is a little discipline... wouldn't it be nice if our employers had thought the same way and did a little planning so no one would have to deal with this mess at all?

I agree with many other commenters... be glad you at least have a job and work as well/hard as you can to hang on to it.

"

Sounds like the Unions are at work here.  Unions and work go together like oil and water.  

Biff "

I suppose you'd rather go back to the 48 hour work week with no health benefits at minimum wage.  If you have more than that, you have the unions to thank for it.

The people who actually have a job and work for a living are the ones who are being hurt in this economy.  The things that a person HAS to have are the things that have gone up so much in price. These are things such as heat for homes, electricity, food, medical bills , insurance , esp. health, and the like.  The people who live on the public dole, Social Security, welfare, medical assistance, etc.  are shielded from these things, because for them they are paid for, and they dont bite so much into their income.  Also, their incomes, Social Security, disability, etc. are raised every year according to the inflation figure.  Those of us who work, are losing hours, because there is not enough work, and we are not getting raises, because of the economy.  Yes, we are glad we have jobs and health insurance, but we are actually on a DECLINING income.  Where as those on the government are on a FIXED income.  I would LOVE to be on a fixed income right. now.  My paycheck  AND my husbands income are BOTH declining.  that makes things very difficult, esp. with everything going up in price.  Also, my health ins. deductibles are up from $250 to $1000, so that is a HUGE difference, which those on public assistance do not have to pay  Also, we who work, end up going into debt for medical expenses, whereas those on government assistance, walk away with no medical debt!!.  I think that it is getting to to point where those who live off of the government, actually have more money than those who work.  Everything has changed so much.  It is getting to the point of, why work?  (Socialism!!)

I am a nurse and I just started at a new position a couple of months ago.  I don't have a huge savings account and don't have a lot of piled up vacation time.  One day every pay period I have been asked to stay home and use what ever vacation time I have just earned.  It is crazy and very stressful.  It may sound fine to ask employees to take time off - but people plan for their earnings and want to decide when they want to take vacation - and what they want to do with it.  

Forced vacation time is STRESSFUL!  It is better than the company going down - but I believe there are other ways to cut spending.  

by the time I receive my pay, there is very little left.  They take out medical insurance, a small amount for retirement, money for the medical spending account, and Taxes Taxes Taxes.  My paycheck is so cut up, that if I had to take upaid time, there sure would not be much left.  And as far as taking benefit time for forced time off, man, there are so many other times in the year when you need time off for something , or else just need a break for your body and mind.Or your family.

My employer has done this for about 20 years. During the holidays attendance is low, everyone must use their Vacation /PTO time or loose it. So they "shut down" for a week or so, they idle the equipment in the factory and save the company A LOT of money at the end of Q4.  If we must bail out the Auto industry then we must abolish the UNIONS. Will the Feds have to meet  Union demands now? RIGHT TO WORK is the only competitive way to go.

I've urged my employees to please, please not use your vacation and sick times unless you absolutely have to use it. I've been speeling it for 2 years now. Now that I have been forced to cut their hours, those that listened to me are happy they did and in most cases, work even harder for me than they did before the cuts. Those that didn't... well I feel for them but not only did not they not listen, but their workplace attitudes have sorely disintegrated as well. I gave up 3 raises so far and will give up even more if that means keeping my people employed as well.

When times were hard for the company that I worked for.  We  took one day every two weeks using vacation or choice of no pay.  Everyone got to keep their jobs which was a good thing.  

The compny i work for just announced last friday we will have thanksgiving week off. there is nothing i can do about it, but stay home and enjoy the time with my family. It sounds like we might be having more time in December.

Send a Comment

Comments must be directly related to the blog entry. Comments with offensive language will be deleted. Your e-mail address won't be displayed.

(please, no HTML tags. Web addresses will be hyperlinked):