Conference 7.286::dcu

842.0. "Wage Freeze" by OASS::MDILLSON (Generic Personal Name) Thu Jun 02 1994 15:09

Digital announces immediate wage and salary ...             Date: 02-Jun-1994
Page   1 of 1  
             Digital announces immediate wage and salary freeze 
       
         Digital management has decided to implement an immediate freeze 
   in base wages and salaries as part of the effort to reduce costs and 
   return the company to profitability, according to Richard M. Farrahar, 
   vice president, Human Resources.  Performance-based incentive plans 
   currently in place are not affected.
         "Digital is at a critical stage of our turnaround.  We are 
   examining every aspect of our business with a determination to focus 
   on long-term success and hold costs in check to assure operational 
   flexibility," Farrahar said.
         He explained that management had examined payroll, one of 
   Digital's largest fixed costs, and after careful consideration, 
   concluded a freeze was necessary.  The freeze applies to payroll 
   worldwide, unless prohibited by law or other binding legal obligations.  
   In countries where the freeze is prohibited, managers are required to 
   submit the same level of cost reduction by other means.
         In outlining provisions of the freeze to senior managers, 
   Farrahar said, "It is important for employees to understand that this 
   is part of our overall effort to reduce costs and restore profitability.  
   We -- each and every one of us -- must continue to do the difficult 
   things necessary to get Digital back to profitability as quickly as 
   possible.  Our shareholders expect it, our customers want it and I am 
   confident that our employees will understand the necessity."
         Consistent with Digital's "pay for performance" philosophy, 
   however, performance-based incentive plans will continue where they are 
   currently in place.  These include sales incentives, organizational and 
   country success sharing programs, annual performance-based incentive 
   programs and the stock option program.
         In addition, funding has been increased for the FY94 Top Performer 
   and FY94 Employee Recognition programs "to provide more financial reward 
   opportunities for high-performing employees at all levels."
         Continuation or termination of the freeze will be determined by 
   Digital's future financial performance, Farrahar concluded.


















                       FOR DIGITAL INTERNAL USE ONLY

    

    Oh, well, wonder if my creditors will accept an equal percentage
    reduction in my obligations.

    
    Well, I may be new at this moderator stuff, but it seems to me that this
    note, while rather interesting, is not particularly germane to the
    discussion of DCU issues.
    
    Note is write-locked; I will consider any compleeing arguments to the
    contrary.
    
    May I suggest the DIGITAL conference...
    
    
    Bill -- co-moderator DCU