Capgemini asks expensive older staff to take a pay cut

The Dutch arm of IT company Capgemini has asked some 400 expensive, mainly older, workers to take a pay cut, Nos television reports on Monday.

Some people will lose up to 10% of their salary because of the cut, which cannot be forced through legally, the broadcaster says.
The company says there is a ‘mismatch between what people earn and what they can do’ and the relationship between older and new workers’ pay has become skewed.
If workers do not accept the pay cut, the company will have to undergo a reorganisation, leading to the loss of many jobs, board member Jeroen Versteeg told Nos. The works council has agreed to the plan.
Versteeg says the IT sector has a more urgent need to limit personnel costs than other industries, pointing out that turnover has gone down sharply since 2008.
In addition, hourly rates have also been reduced because much work is farmed out to India, he said. Some specialisms are now paying around €40, which is a less than a plumber earns.
Trade union De Unie described the plan to cut the wages of older staff as hot air. ‘Agreements have been made about pay and working conditions and if Capgemini wants to talk about them, they must first invite us to do so,’ official Han ter Halle said.
FNV Bondgenoten told the Financieele Dagblad it is noteworthy the board have not offered to cut their own pay packages and so set a good example to staff.

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