CGI is latest IT company to call for pay cuts

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.
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