Australian EDS staff face new contracts

EDS Australia workers have claimed that the company plans to ask them to sign a new employment agreement following the company's acquisition by Hewlett-Packard. But, terms on maintaining conditions and pay remain uncertain.

"We have heard very disturbing rumours that the company is about to make new offers of employment with reduced pay," Michael Butler, director of industrial relations at the company's most active union, the Association of Professional Engineers, Scientists and Managers Australia, told ZDNet.com.au.

"It's of concern," he said. "I hope it's the rumour mill working in overdrive. We'll be seeking to meet with the company."

Other sources who contacted ZDNet.com.au about the move suggested that workers may have 10 days to accede to or reject an agreement with a new, differently named company which might be put to them sometime next month.

A HP spokesperson was unwilling to speak on the issue. "It is not EDS or HP policy to comment on internal matters relating to employee terms or conditions," the spokesperson said.

The combined company has already gone through a round of redundancies which led to about 7.5 per cent of local staff being shown the door. The company also asked local staff earlier this year if they would be willing to accept a pay cut to reduce the likelihood of further redundancies. While staff voted on that, sources said there was another round of redundancies.

"The integration of EDS is going well and customers are responding positively, with some significant local signings announced recently," the spokesperson said. EDS recently won a $190 million deal with Telstra to carry out its application development and maintenance. The Australian Taxation Office also extended its outsourcing deals for end user and centralised computing with the company.