Volt Asks Temps To 'Vote" For Microsoft Pay Cut
theodp writes "In an email sent Friday evening to its Microsoft temp workers, Volt Workforce Solutions asked the techies to 'vote' to agree to a 10% pay cut. From the email: 'We want to support you in continuing your assignment at Microsoft and respectfully ask that you respond by going to the upper left hand corner of this email under the "Vote" response option and select, "Accept'" by close of business Tuesday, March 3, 2009. By accepting you agree to the [-10%] pay adjustment in your pay rate.' Microsoft managed to keep the Feb. 20 email detailing plans to slash rates from leaking while it pitched its Elevate America initiative at the 2009 Winter Meeting of the National Governors Association, touting Microsoft skills as just the ticket to economic recovery."
GM doesn't pay much more than Toyota. In 2005 GM paid on average $31.35/hr vs Toyota paying $27/hr.
The big cost difference comes from GM paying people who aren't working (Job banks and retirees[460,000 vs 1,600]) as well as taking more man-hours (34.2 hrs vs 27.9) to build a vehicle than Toyota. Some Toyota plants actually pay more than some GM plants.
HP / EDS pulled the same stunt. Oh, except that the CEO's taking a 20% cut in his basic (but pulled a $40,000,000 bonus last year), and there's no vote involved.
http://go.theregister.com/feed/www.theregister.co.uk/2009/02/19/hp_pay_cuts/
"None are more hopelessly enslaved than those who falsely believe they are free." -- Goethe
A large portion of their contractors are really contracted through temp companies. For example, I install computers in the Microsoft offices through one company while testing Xbox 360 hardware/functionality through another. I never received one of these letters, it was answered for me. I would also like to note I have barely had work for the last couple months, and it is terrible. Microsoft is a corporation which uses its contractors as fodder in order that it doesn't get the media that is normally involved with laying off employees.
All "a-" (contract employes) were told to take a 10% pay cut. Those of us at Aquent weren't even asked to "vote".
We're trying to get the word out on this site: http://www.msratecuts.org/
There's no headcount for permanent hires now, and I don't think any Blue Badges are getting raises, but that's different than taking a 10% pay *cut*. However, at least on my team, they're still hiring contractors.
On the Aces (Flight Sim) team, they fired the whole team and then asked about 3/4 to come back as contractors, forgoing their severance.
IMHO: This is an excellent catalyst for unionizing.
I've heard that benefits for employees are also vastly in big 3 workers favor.
I found one 'for example'
http://www.wsws.org/articles/2008/nov2008/pers-n13.shtml
[i] Like Friedman, he writes indignantly of decades (now ended) during which Big Three workers received "gold-plated medical benefits that virtually no one else had," under which United Auto Workers members had "no deductibles, copays or other facts of life in these United States."[/i] opinions of the validity of the argument aside, such benefits add a lot to the bottom line....
every day http://en.wikipedia.org/wiki/Special:Random