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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

 

I understand cutting back and I think most people are grateful to still have

a job. What I do not like is forcing someone to take time off without pay

and no warrning. Ok I understand we are suppose to be grateful to have

a job but a week without pay could mean no groceries or gas or for some

getting behind on their mortgage. Time off with pay is much more acceptable

this time of year. This could also mean no Christmas for some kids! If this

is what is needed advanced warning should be given in these tuff times.

My husband works for an automotive dealership body shop and he is

going without a weeks pay we have little savings and no way to make

this up but with cutting back something we truly need. I also work in

the automotive business so I truly understand how lucky we are to have

jobs. All I am saying is they probably knew they were going to do this

several months ago and Dell should have warned these folks ahead of

time like the company my husband works for should have told him.

Wait til we have to bail out corporate pensions. That would be fun.

My company is having a mandatory vacation period as well and all employees are asked to use their vacation balance. The salary people have tons of vacation time to use up however the little guys on the hourly clock not so much.  Basically we will be having an unpaid vacation time. Can't complain too much if we still have a job when we get back. No holiday party. More like a holiday pot luck which is fine with me as well.

Item 1. Unions have nothing to to with companies going under, that is upper managements fault, it is because of their greed and mismanagement that they are going under, the unions only try to get the worker fair pay and the same things upper management have that management thinks is only for their people and giving the lower worker crumbs, also unions help workers have a decient work enviroment where they are not treated as slaves the way management and upper management would like it to be.

Item 2. Look at Europe, the workers over their are given 2 weeks vaction with pay and they are more productive their then we here in the U.S. are even though the American worker puts in 60% more hours then the  Europiean worker.

Perhaps the American worker should take a look at the Europiean worker way of doing things.    

Bren, It seems to me that you are living paycheck to paycheck, with little savings in case of an EMERGENCY!  Wake up! When are you all going to realize that nothing in this world is a sure thing? Why not prepare for the future instead of living for today! Take a good look at your lifestyles...Do you really need a 56 inc TV? or the newest iPhone? Wii? Try using the word NO to your kids. I suggest implementing a 6 month salary in savings. I know it's tough, but trust me, it is definitely takes a load of stress off, knowing you'll have that in case you are laid off. I have 2 years salary in savings..I knew the economy was going to tank 2 years ago.STay informed. don't trust anyone.

IT sounds great to me!!! When I had my manufacturing plant in central fl we always shut down 2 weeks each year. July 4th week and the week between xmas & new years. Everyone was happy the best times to have off.  

I work for a company where the VP and CEO are out on the production floor tlking with employees daily. this is great!! they also have made all who have vacation time, take it before years end. I am happy to work there because of their effort to be involved with workers.

Ok..... I work for a major university and we've always had the week between Christmas and New Years off for as long as I can remember. It's cheaper to pay people to stay home; Cisco is just discovering this fact?!?!?!

Ok..... I work for a major university and we've always had the week between Christmas and New Years off for as long as I can remember. It's cheaper to pay people to stay home; Cisco is just discovering this fact?!?!?!

Holiday parties can fade away IMHO.  With all the employees mingling in an atmosphere of forced conviviality, the feeling tends to be somewhat like the peasants being invited to the manor once a year by the jovial lord and his reluctant lady.  A day off with pay (even if it is part of your hard-earned vacation time) is far preferable.

Unfortunately, many of the rank and file at these companies may already be out of paid time off and have to take these shutdown days as unpaid time.

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