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CGI is latest IT company to call for pay cuts

Wednesday 16 January 2013

CGI has become the latest IT company to ask staff to take a pay cut and wants all 3,500 workers to agree to a more flexible pay system, the Financieele Dagblad reports on Wednesday.

GCI, formerly known as Logica, also wants to increase the performance-related aspect of staff pay, the paper says, quoting Ron de Mos of CGI Nederland. The effect will be to ‘tackle’ the pay of more expensive staff, the Financieele Dagblad said.

Last week, Capgemini said it wanted to cut the salary of around 400, mainly older, workers by up to 10% in order to improve the balance between income and productivity. Ordina and Atos have also called for pay cuts on a limited scale.

'Capgemini has raised an issue which plays at other companies,' De Mos said. 'Namely, the people who have reached the end of their careers but who no longer bring in what they cost the company.'

De Mos is to discuss his plans to make salaries more dependent on company results with the works council and the unions in the next couple of months.

Pay deals

According to Bas Rupert, a pay and conditions consultant at the corporate advisory group Towers Watson, companies will increasingly try to break open pay deals and end automatic pay rises.

Some 48% of companies are cutting costs by not taking on new staff and 43% have made some workers redundant, Rupert says. He bases his claim on research involving 62 Dutch firms with a total workforce of over 100,000.

'We did not ask companies if they were planning to cut salaries, but 30% indicated they were taking other measures, and reducing pay could be among them,' he told Trouw.

Do you work in IT and would you take a pay cut? Share your thoughts using the comment form below.

© DutchNews.nl


Readers' Comments

I joined Logica NL from the UK in 2001 as they were offering an attractive package. Since then my salary has hardly increased and my wife is forced to work just to make ends meet. A pay cut would ruin us, we desperately need a large increase, not a cut.

By Mike | 16 January 2013 8:38 AM

As a software engineer I know that these large IT companies are hopelessly inefficient compared to start-ups. Cutting wages will probably exacerbate this, as they will have difficulty retaining their best people, who will find higher wages elsewhere (the Netherlands still has a structural shortage of IT professionals ). Their biggest problems relate to their flawed business models -> to many powerpoint slides and not enough high quality code. Cutting wages wont change this.

By Thomas | 16 January 2013 11:21 AM

Like Mike came here in 2000. Salary gone down 1000 net a month since 2008. Barely making ends meet. Sat in doctor's as I type with blood pressure 147/110 working 2 jobs.

By Sarah | 17 January 2013 8:47 AM

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