Conference 7.286::digital

		Worldwide News                      LIVE WIRE


                       New phase of U.S. downsizing announced
 
  Increasingly intense competitive pressure within the computer industry -- 
  business practices, technological advances and manufacturing efficiencies -- 
  are placing added pressures on the company's cost structure, in spite of 
  ongoing cost reduction efforts that focused on increased productivity and 
  efficiency and two voluntary downsizing programs.

  An analysis of the results of these efforts has been completed and was 
  reviewed this week by the Corporate Operations Committee and the Executive 
  Committee. This analysis shows that those cost reduction efforts, while 
  impressive, have simply not been enough, in light of the increased pressures 
  applied by economic conditions. 

  As a result, a new phase of the U.S. downsizing effort, involving involuntary
  selection methods, has been approved effective immediately. The decision to 
  move into a new phase was finalized yesterday. 

  As we move ahead into this phase, it is critical for everyone to try to 
  grasp the full impact of the intense competitive and economic forces at 
  play. Those pressures are driving fundamental changes in this company and 
  this industry. And even as business improves, we can no longer expect things 
  to "return to normal," as many of us assumed in past economic downturns. 

  This phase is different in two ways from prior phases. It will involve 
  involuntary methodology, and while a financial support package will be 
  offered, it will be somewhat less generous.  

  While we need to move ahead quickly, we also intend to proceed in a rational 
  and orderly way that will not disrupt business. This program is a U.S. 
  program. Other downsizing programs will continue to be implemented outside 
  the U.S., based upon business conditions, local laws, customs, and 
  traditions, on a country-by-country basis. 

  Regarding methodology, two primary factors will determine whether an employee
  is selected: 1) his or her work has gone away; 2) he or she is selected from 
  a larger group being reduced based on performance (i.e., the last documented 
  performance rating, as indicated on the employee's most recent performance 
  evaluation).  If additional selection steps are required, they will be based 
  on additional performance criteria (those details are being further refined 
  and will be finalized shortly.)

  The elements of the financial support package include a lump sum payment 
  based on years of service to the company; maintenance of medical, dental, 
  and life insurance coverage for a period represented by the total payments, 
  not to exceed one year; formal outplacement/employment assistance; 
  and, where applicable, five-year acceleration of any restricted stock 
  options.  This latter element is subject to approval by the Compensation 
  Stock Option Committee (CSOC).  There is no open-window period as before.

  Though the manner in which the payment will be made has been structured 
  differently than in previous programs to accommodate certain legal 
  requirements, the total payments will be as follows:

      0 - 2 years of service               13 weeks of pay
      3 - 10 years of service              13 weeks of pay, plus three weeks 
                                           of pay for every year of service 
                                           between three and ten years.

     11 - 20 years of service              37 weeks of pay, plus four weeks 
                                           of pay for every year of service 
                                           between eleven and twenty years.

                                           77 weeks of pay will be the maximum 
                                           financial bridge available.

  The progress of this program will be assessed periodically, and we will 
  endeavor to communicate relevant information to managers and employees as 
  quickly as possible through the appropriate communication channels.

Re .0:  Unfortunately, those most qualified to answer won't reply. Those
selected for "involuntary termination" aren't likely to have the time or
inclination - or access to a system account - to post details.

I've talked to a friend who was "selected" a few days ago. By the time
he was finished being told, his system account had been disabled. He got
a chance to come back to take personal items from his office (the next
day), but that was it.

As for the hypothetical case of getting a job offer from another company
right away, I should think it would be the equivalent of winning the
lottery with your prize equal to your severance money (assuming the
new job pays what your old one did). And you've just saved DEC the cost
of your "outplacement assistance."  (Still, in these times it's a "lottery"
I wouldn't want to enter.) 

    I have learned from someone who was "selected" that leaving under these
    circumstances does not preclude your being rehired.  However, you must
    wait a minimum of six months or the full extent of your severance
    package (whichever is longer) to reapply.  Also, you are subject to the
    same constraints of DIGITAL's "no rehire" policy as anyone who has left
    the company. That requires VP approval, etc.
    
    mdh

re Note 1366.3 by CSSE32::M_DAVIS:

>     Also, you are subject to the
>     same constraints of DIGITAL's "no rehire" policy as anyone who has left
>     the company. That requires VP approval, etc.
  
        Really, even though they left involuntarily, through no
        fault of their own?  (Other than committing the offense of
        being "expendable"?)

        Bob

    Bob, let's carry this conversation to another note regarding ISP.  I'd
    prefer, as I believe I mentioned in .0, to keep "discussion of the
    merits" separate from the facts.
    
    regards,
    Marge

    I was told by the Personnel Manager in our group, that the policy was
    (as of Jan. '91), that even if you are laid off - involuntary leaving -
    that there will be a two year freeze on hiring you back.  Also, if
    after you are involuntarily laid off you will start over as a new
    employee.  So if you had 15 years with DEC, you will start over as a 1
    year employee.
    
    A vendor came in yesterday to speak to our group yesterday, and during
    the presentation it came out that he accepted a transition package 8
    months before.  After the presentation, and after he left the
    conference room, he was quietly escorted out of the building and told 
    that it was TWO years before he could come back.
    
    I can understand if one voluntarily leaves the company about these
    policies, but why do laid off employees have to be treated in this
    fashion.  
    
    My 2 cents,
    
    Tina

re Note 1366.5 by CSSE32::M_DAVIS:

>     Bob, let's carry this conversation to another note regarding ISP.  I'd
>     prefer, as I believe I mentioned in .0, to keep "discussion of the
>     merits" separate from the facts.
  
        Perhaps the problem is that "let's unmuddy the waters", as
        the topic title, is very muddy as to the subject at hand (and
        it seems unreasonable to expect everybody to memorize, or
        re-read, the .0 topic notes before replying to a reply).

        Bob

    Your point is well taken.  I'm changing the title.
    
    regards,

    The poilicies in this topic so far DO NOT APPLY WORLDWIDE. As far as I
    can determine, they are US only. In the UK, you can be rehired without
    the usual 6 months+VP signature rigmarole if you are laid off.

    I'm told my use of the expression "employment contract" is not correct,
    that what we have signed is a "confidentiality agreement".
    
    mdh

re Note 1366.12 by CSSE32::M_DAVIS:

>     I'm told my use of the expression "employment contract" is not correct,
>     that what we have signed is a "confidentiality agreement".
  
        Well, is it a contract, i.e., a binding agreement, or is it
        not?

        It was a condition of employment, and covered some terms of
        that employment, no?

        Bob

    (I can't remember the professor's name in Paper Chase :-)
    
    Steve

    Kingsfield.
    
    Anyway, yes, I consider it a binding agreement, but in the Personnel
    sense, an "employment contract" has a specific meaning, outside that of
    the confidentiality agreement which each of us signed.  I believe it
    has more to do with a waiting period (presumably during which your
    technical expertise becomes adequately stale) before which you may work
    for another firm in the industry.  Anyway, we didn't sign one, so I
    don't want to rathole on that topic.
    
    thanks,

    
    Re: .15
    
    An "employment contract" is usually used by the high-powered
    types coming in to take VP jobs and the like.  They negotiate
    their personal T+Cs of employment and it is usually stuff like
    bonuses, stock options, etc.  So these things tend to be one
    of a kind stuff.
    
    The "confidentiality agreement" is a more generic thing and applies
    to employees in general.
    
    In any case, they are both binding on the parties who sign them.
    
    Steve
    

    Re .11:
    
    A friend in Personnel informs me that:
    
    --The nine-week period covers the 60 days of severance pay that
    Massachusetts law requires companies to offer laid-off employees.
    
    --The nine weeks of pay is *not* in addition to the severance package
    as computed using the company's formula (13 weeks plus...etc.);  it is
    part of that package.  Pay for accrued vacation hours, of course, is in
    addition to the package.
    
    --Employees who are affected by this plan are considered to be
    terminated when they leave the building on the day of their notice. 
    They may *not* seek transfers or other employment at Digital until
    the prescribed period has expired (two years?).  Upon rehiring they
    would be considered "new" employees.
    
    --Digital has retained Drake, Bean, and Morin, 119 Russell St.,
    Littleton, MA, as an outplacement agency.  Terminated employees may go
    there to attend outplacement seminars, prepare resumes, make phone
    calls, etc.  I believe Digital is underwriting these services.
    
    Mac.

    Well, that makes more sense.  
    
    Thanks, Mac....

regarding contracts of employment.

Don't know about you colonials, but what I signed when I joined had better
be a legal contract of employment or Digital is in deep doo-doo!

We in Britain have a legal right to a contract and Digital (or any other
employer) can't side step the issue by using fancy words.

/. Ian .\

    I understand that layoffs are forbidden by law in most European
    countries, and that contracts of employment are commonly offered to
    employees as a group.
    
    No such parallel exists in the U.S.  Layoffs are not a matter of law
    (except in certain states where certain conditions must be observed --
    e.g., the 60-day notice or severance required in Massachusetts), and
    contracts of employment (that is, governing salary and/or period of
    employment) are negotiated only individually -- mostly by company
    executives, professional athletes and entertainers, and government
    appointees.  For others, only collective bargaining agreements offer
    any protection (and it's limited!) against layoffs.  However, largely
    because of tales about restrictive work agreements and internal
    corruption, labor unions have declined greatly in popularity in the U.S. 
    Digital has few if any collective bargaining agreements with its U.S. 
    employees -- possibly only with vehicle drivers represented by the
    Teamsters Union.
    
    Mac.

re .20

Do you have any reason to believe that any of DEC's vehicle drivers are
represented by the Teamsters Union?

    Re .21:
    
    No, I have no direct knowledge of Teamsters representation at Digital
    -- just a guess based on the Teamsters' reputation for, let us say,
    persistence in seeking representation, their pervasiveness in the
    trucking industry, and the -- ahem -- difficulties one can encounter 
    with other carriers and handlers if one employs non-union drivers.
    
    Does anyone know for certain?
    
    Mac.

    Please start a new note for discussions of labor unions.
    
    thank you,

    The no rehire applies for six months or for the length of the
    separation package, whichever is longer.
    
    

    ok....I've read tons of notes regarding the layoff but am still
    wondering....
    
    Does the nine weeks mean that you will get a pay check every week
    for 9 weeks, and then a lump sum?
    
    KC

    I have some information at home that I plan to enter in this note this
    weekend.  It is a listing of questions and answers that was given to
    a group in a downsizing meeting.
    
    The answer to the question in .25 is you will receive a pay check 
    every week for 9 weeks.  If you have auto-deposit it will continue
    to be deposited.  If you have a live check it will be mailed.  During
    the 9 week period you will be required to sign a severance agreement
    before you will receive your lump sum payment.
    
    

Q.  If I receive a job offer from another Digital group during the 9
    weeks I am receiving a check from Digital, may I accept the offer?

A.  No

Q.  If I accept a job offer outside of Digital during this period, will
    it jeopardize the remainder of the 9 weeks of payment and/or lump
    sum?

A.  No, it will not affect the 9 weeks payment.  As long as you sign
    the Employee Severance Agreement, you will also receive the lump
    sum payment.

Q.  Am I eligible for rehire?

A.  Rehire will be in accordance with Digital Personnel Policies and
    Procedures, Section 2.01.  In the event that a former employee
    might be considered for rehire, the individual will not be 
    eligible for rehire prior to the completion of the financial 
    bridge payment period.

Q.  May I work as a contractor for Digital or for a third party with 
    whom Digital contracts?

A.  You may work as a contractor for Digital AFTER the period of your
    lump sum payment.  Should you be employed by a company with whom
    Digital contracts, you may NOT work on Digital premises during 
    the period of the lump sum payment.

Q.  During the 9 week period, do I have access to Digital facilities, 
    and can I return to my work place?

A.  It is expected that you will not return to Digital facilities during 
    the 9 week period or following your termination.  You may continue
    to access the Digital Credit Union offices in accordance with 
    visitor practices.

Q.  Do I accrue vacation time and pension credit and time during the
    9 week period.

A.  Yes.  In addition, components of your Transition Financial Support
    package (e.g.; lump sum payment) are calculated based upon 
    termination at the end of the 9 week period.

Q.  Are Assistive Services (EAP) available during the 9 week period?

A.  Yes.  Confidential assessment and referral assistance will be 
    provided offsite.  Appointments can be scheduled by calling the
    telephone number included in your packet.

Q.  Do I have access to outplacement services during the 9 weeks?

A.  Yes.  Refer to the outplacement registration form in the information
    package for contact and registration information.

Q.  Do I have access to outplacement Services and Assistive Services after
    the 9 week period?

A.  If you sign the Transition Financial Support agreement, both services
    are available for a period of 6 months, inclusive of the 9 week period.

Q.  Am I eligible for a salary increase during the 9 week period?

A.  No.

Q.  Will I automatically receive my TFSO payment and associated benefits
    at the end of the 9 week period?

A.  No.  You must sign and return an unaltered Transition Financial Support
    Agreement via mail by the deadline specified in your information 
    package.  That agreement should be mailed to your TFSO Administrator.
    

    re: .27
    
    Thanks very much for providing that information.
    
    
    >> You must sign and return an unaltered Transition Financial Support
    >> Agreement via mail by the deadline specified in your information 
    >> package.  That agreement should be mailed to your TFSO Administrator.
    
    Does anyone know the contents, terms, etc., of the aforementioned
    Transition Financial Support Agreement?  It's mentioned often enough
    (and in sufficiently ominous tones) to make me a bit suspicious as
    to what we might be signing (away?).
    
    Chris
    

    
    
    I was told...so it might be bogus info....
    
    That you sign an agreement not to sue Digital.
    
    
    Lou

    Since this is an "INVOLUNTARY" separation, does anyone know if those
    affected will be able to collect unemployment...especially related
    to MA residents?
    
    cin
    

    My understanding is that information will be provided by Digital to the
    state as regards your termination.  Any unemployment compensation is a
    matter between the individual and the state.

>A.  Rehire will be in accordance with Digital Personnel Policies and
>    Procedures, Section 2.01.  In the event that a former employee
>    might be considered for rehire, the individual will not be 
>    eligible for rehire prior to the completion of the financial 
>    bridge payment period.
  This seems to be saying that a laid-off employee has no advantage in being
rehired, compared to someone who resigned, assuming everything else is equal.
This is an important point. 

>A.  You may work as a contractor for Digital AFTER the period of your
>    lump sum payment.  Should you be employed by a company with whom
>    Digital contracts, you may NOT work on Digital premises during 
>    the period of the lump sum payment.
  Does anyone know if "working on Digital premises" includes visiting a DEC
plant (beyond the lobby) as a vendor representative?