Employees of HP Enterprise Services, formerly known as EDS, have now mainly moved onto new HP contracts with equivalent conditions, according to the integrator's most active union, the Association of Professional Engineers, Scientists and Managers, Australia (APESMA).
The employees were asked to sign contracts from around September,
according to APESMA director of industrial relations Michael Butler. The
signatures would mainly have been collected by now, he said. According
to a spokesperson for HP, full legal integration including employee
transition was completed by 1 November 2009.
had been some concerns that new contracts would mean worse conditions. The
union said in a bulletin earlier this year that management had been speaking about moving employees
into an off-shore company on lower pay and working conditions
without recognising previous years of service or accrued leave.
"The issue stemmed from [HP's] belief that by the offer of new
contracts they could basically wipe the slate clean," Butler
However, doing so wasn't allowed under the Fair Work Act, according
to Butler, a fact around which the union rallied with success.
"Under these rules, if you are transferred from one business to
another (for example as part of a corporate takeover) and if you
are retained to do substantially the same work as before, then your
new employer must maintain your previous working conditions and
entitlements and recognise all of your accrued leave entitlements,"
APESMA said in a bulletin.
HP conceded to the rules after deliberations, APESMA said, so that the current EDS agreement was
transferred in its entirety, salary was preserved, the entire
period of service was to be recognised, and individual redundancy
and severance arrangements were to carry over. The association was very happy with the outcome.
HP was a little more cryptic on the transition. "The job migration process ensured that EDS jobs
were mapped and aligned to HP jobs and salary structures. This enables HP to effectively
drive its pay-for-performance strategy with a consistent job-based foundation for rewards, development and organisation planning," the HP spokesperson said.
The EDS brand has now been retired, with HP making the decision to end its life
just over a month ago.