Vivendi gifts its employees the chance to get online

Over a quarter of a million staff at French media giant Vivendi are to receive free PCs in a deal with People PC.

Under the deal announced today, Vivendi will pay for its 260,000 staff to receive a HP computer and free internet access. People PC will manage the implementation. The first phase of rollout is currently under way in France where 110,000 staff will logon to free PCs as early as this summer. The rest of Europe and the States should follow suit within the year. In a statement, Jean Marie Messier, chairman and chief executive of Vivendi, said the company wants to provide all staff with affordable internet access. Staff in France will pay a nominal fee of E3 (£1.90) a month over three years, after which time they will own the computer. Such schemes have become popular incentives with companies struggling to retain skilled staff. People PC have also inked deals with Delta Airlines and Ford. Intel introduced a similar project for its 70,000 staff last April. But in the current climate of cost cutting measures are free staff PCs an affordable perk? Intel didn't think so. Last week Intel cancelled its project as part of a wider savings strategy. Despite Intel's U-turn, and the current reversal of fortunes for many technology companies, Marion King, European managing director of People PC, believes the deal is a wise investment by Vivendi. She said: "It is difficult for some companies to justify the cost involved, but Vivendi is finding that there are huge commercial benefits to itself and its employees when the employees can go online. Vivendi's showing its staff something positive at a time when everyone else is announcing cutbacks and that's good." Vivendi did not disclose the sum involved in the deal.