To deal with the crisis, Hewlett-Packard plans to reduce wages in exchange for the preservation of jobs. Is this a workable idea in France
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On 19 February, Mark Hurd, CEO of Hewlett - Packard sent an e-mail to all of its employees around the world: "We decided to go further in the variability of our cost structure by reducing basic at HP wages". My base salary will be reduced by 20. The basic salary of the Executive Committee will be reduced by 15. The salary will be reduced and other leaders of reduced by 10. The basic salary of all other frames will be reduced by 5. For the non-management, the base salary will be reduced by 2.5.
Aware, however, of the need to take account of the laws of each country, he added: "of course, these put in place are subject to compliance with the laws and local rules."
Under French law, we will see it, Mark Hurd is already upgraded cantilever.
The point of view of the judges
Let's start with the form, this e-mail sent directly to 100,000 employees of the company and bypassing the staff representatives, announces a project but rather a decision. In so doing, under French law, Mark Hurd is guilty of an offence to obstruct, if it refers, for example, in the case of Marks & Spencer. It recalls that, on 29 March 2001, the employees of the French settlements of that mark had learned at 8: 15 a.m., programmed their store closing. Members of the Committee, they had had information at 7: 55 pm. The implementation of the decision was suspended by the TGI of Paris on April 9 and the leaders of the company sentenced for a crime of interference (Cass. crim. July 22, 2004).
Of course, this is not the conviction that concern to Mark Hurd, even if the tribunal support addition (audiences euros). See rather to what extent he can expect his wish to occur in France.
Home, salary is regarded as an essential element of the contract of employment, its even modest reduction is modification of the contract of employment, so cannot be imposed on the employee (Cass. Soc., May 19, 1998). When we say it, it simply means that, contrary to the American employee, is that "submit or resign", his French colleague may refuse the earnings decline,... resulting in his dismissal. Resistance capacity ends, neither employees nor their elected representatives can compel Mark Hurd to maintain the level of remuneration.
But the immediate economy is likely to cost him dearly in the medium term. Each employee who refuse will be fired, termination in support, and the reason for the dismissal being necessarily economic, from the tenth refusal, HP France will trigger a procedure for collective redundancies accompanied by a PES (protection of employment plan) to be of, if he does not want that layoffs are void. Even assuming that the figure of ten refusal is not achieved, will need to seek solutions for reclassification for those who have refused. Return back only to the recalcitrant is not conceivable, it would be contrary to the principle of equal treatment.
Will then continue to prove that the measure was justified under the economic difficulties present or foreseeable, otherwise the redundancies will be judged without real and serious cause.
Consequences for the company
If it decides to take the risk, how should the company proceed concretely It will have to send a registered letter with AR to each employee to offer him this salary reduction. The silence, in the period of one month, will be accepted.
It can also, as did Bosch in 2004, negotiate an agreement giving-giving with the unions, but this will not deprive employees of their right of refusal.