Conference 7.286::digital

    
    Why wasn't this instituted before Mr. Palmer's salary increase?
    
    Sigh.....

It's not clear to me that Palmer's salary is frozen by this plan.

    I just wondered "aloud" in ::DCU whether or not my creditors would
    accept an equal percentage reduction in my obligations, as if what I
    might have gotten...  (I was due this month)...
    
    Can't even afford Lottery tix.  :^(

    If funding has been increased for the FY94 Top Performer and FY94
    Employee Recongition programs, how do I nominate myself for these?

    One more question -- if they lift the freeze by September, do we get it
    then or do we have to wait for next review period again?
    

    
    If someone just got thier raise letter yesterday does the raise
    go through for June?
    
    

    re: .5
    What makes you think it will ever be lifted? 
    
    re:.6
    The way I read .0, if it ain't in your check now, forget it.
    
    Dave

Hmmm...does anybody see this as risking the ever-shrinking population of capable
people (to leave that is)?  It seems to me that the reasons to stay for the truly
excellent/good people keep going away.  When this company reaches 65,000 people,
will they all be the political/bureaucratic do-nothings that even now impede the
progress of the producers?

Having lived through some of these salary freezes, I predict this will be
indefinite, stretching to at least 1 year.

:-(

    Well, time to examine options, perhaps join the part-time job market,
    or start a partime business, put the wife to work, put the kids to 
    work, trade/sell the new car for a bomber, get rid of the dog/cat,
    (get rid of the kids?-nah), sell the house-move in with the parents/
    in-laws, do your own repairs, hold off on that cruise to Tahiti, 
    work under the table for your drinking buddies, etc, just a small
    smorgasbord of ideas to keep you afloat.
    
    Oh....we were already doing this........
    
        

    
    
   >> in-laws, do your own repairs, hold off on that cruise to Tahiti, 
    
   Don't hold off ont he cruise, just make it oneway!!!
    
    ed

    whenever I see a wage freeze, I always suspect that it is at least
    partially instigated to encourage some attrition......and it will.
    
    steve

I've lived through several salary freezes in the past, as far back as 1979.
Each time, any salary reviews were pushed out by the duration of the freeze,
so if it lasts, say, six months, that's an added six months until you MIGHT
see an increase.  Of course, raises keep getting pushed further and further
out; 15, 18, even 24 months nowadays.  The only saving grace is that (at least
in the US) we've got almost no inflation.  Other countries won't fare so
well (so to speak).

It's really too bad that the SLT doesn't have the courage to bear at least
SOME of the burden of all this cost-cutting on themselves, for example by
accepting a 10% salary cut, the way Scott McNealy did at Sun.  Every single
cut I've seen has been aimed at the general employee; senior management has
spared themselves.  It's as bad as the US Congress.  I'm cynical enough now
to say that it wouldn't astonish me at all to see Palmer voted another
raise.  The disconnect between the SLT and the rest of the corporation is
mind-boggling.  They're turning Digital's greatest asset, its (remaining)
employees, into a bogey-man which is said to be solely responsible for
the corporation's declining fortunes.  Do we change the way we do business
so that we grow again?  No!  It's easier to chop heads and tighten nooses
around those who remain (so that, as .8 suggests, additional employees 
choose to leave on their own.)

Of course, history also tells us that if Digital ever DOES pull out, the
noose will remain taut.  It'll never be made up to you.  Instead, the SLT
will get bonuses.

The announcement's references to various incentive programs must have been
put there to taunt the majority of employees who aren't eligible for them.
How cruel.

Re: .6

I agree with .7; this is how it worked in the past.  Tough luck.

				Steve

    Good thing they got the Stock Option Plan squared away before
    implementing this freeze. :) ;) 8{
    
    fwd

    Does anybody know if the bonus' for management are affected in anyway
    by this tightening of the belt, so to speak?  Other companies have
    addressed bonus as another cost-saving measure.  At our current 
    situation, should we be awarding bonuses?

    'scuse me fer being dumb, but what does "SLT" stand fer???
    
    
    JaKe
    

    Senior Leadership Team, i.e., BP and his cronies....
    
    Toodles.....JP

>         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.

	'pay for performance philosophy'.  yah right.  I thought that
would mean getting a raise for doing a really good job (like saving
or making money above & beyond).  and as far as stock options, I suspect
that they tend to be managment carrots that most of the workforce would
never see.

re: .15

It's supposed to mean Senior Leadership Team.  Unfortunately, their actions
don't seem to reflect the name.

Bob

    thanks fer the answer.
    
    JaKe
    

Well, I got my performance review yesterday, guess it won't amount to
anything more than a pat on the back now. But hey, the good news is,
I got a paycheck this week! That'll keep me happy for now! Actually,
this does not surprise me, and while I would certainly enjoy having
the extra cash, I would feel guilty about getting a raise while all
around people are being shown the door. Every man for himself, sure,
but you need to maintain some perspective.

RE: .12

	Steve, I have to say that that is the most riled I have seen
	you in years.. If it's getting to you, things MUST be bad.

							mike

    	Based on recent events, the AEE has been renamed to AEM, Achieving
    Engineering Mediocrity. By laying off the bottom rungs and driving all
    the best performers away, the medium performers will be left with
    confusing messages as to what they're supposed to be doing and no
    incentive to achieve anything other than mediocrity. Sounds like a
    success scenario to me!

    
    	God I love this place....
    
    	Where else in America (or the world for that matter) can you work
    for a true multinational that is totally disconnected from everything;
    its markets, its people, its management levels, its shareholders, its
    Bored of Directors (no typo here).
    
    	This is great. I've never experienced a real soap opera before - and
    now I is IN one. You know the SLT really wants us to write checks to
    Digital for being allowed to work here. If you all think this is a
    little facious, remember that they're many of us in field sales that
    are having one fantastic year.
    
    	Cecil B. DeMille would just love this place.
    
    		the Greyhawk

    and many who are not....thanks to
    morgan,mustang,noname,medulla,avanti,et al
    
    

    
    	Hey - you sell what you can ship. That is the first rule of sales.
    
    	If you want to play futures, join Merrill Lynch.
    
    	It really is a tough world.
    
    

    Has anyone ever considered stopping ALL excellence programs, all DEC
    100's, etc until the company turns profitable again?  I mean it seems
    to me there should be reward for performance...and I don't think it has
    to include spending 10's of 100's of thousands of dollars flying the
    team to Hawaii ...
    
    Keep the salary increases in for individual performance...while you
    don't necessarily reward people as a group, one or two, in Hawaii or
    the Virgin Islands, etc 
    
    
    You know, each year the amount of people funded to go to those things
    shrinks anyway...
    
    Why don't we just say no more until the company turns profitable again?
    
    

BTW:
Regarding SLT, I just heard that they have renamed themselves
as SMC.  I assume that it stands for "Senior Management Committee".
This much more closely matches what I've seen out of them than
"Senior Leadership Team"...

    i think only those who think they actually have a career left with this
    company would really care much about this freeze. hell, except for a
    few select areas, things have been pretty much frozen for YEARS
    already.

    I'm surprised more people haven't clicked on an aspect of the freeze.
    Since the company went to only dispensing raises quarterly, all the
    folk who were told back in April/May they would be getting a raise 
    aren't; in effect this is a retroactive action.
    
    And you can be sure that the incentive programs for senior mgmt won't
    be touched; in fact, I'll bet it gets dispensed due to the fine job
    they are doing at reducing expenses (ie dismantling the company).
    
    I've been through freezes before, and it isn't the freeze per se that
    bothers me, but the total picture of whats happening is scary; it's
    like watching the death throes of some animal. We've been in cutback
    mode for 5 years now; when are 'they' going to wake up and realize 
    that this cut cut cut strategy just isn't working??

I sure as heck hope that the execs in the company aren't arrogant
enough to take any sort of compensation increases while this wage
freeze is in place.  I'd have to think that would be just a little
too much.

re: .-1

Where's the "smiley"?

-Jack

    
    
    to me this looks just another like another symptom of 
    a corporate variant of Alzheimers or Parkinsons disease.
    
                                                helmut
    						
    

    Keeping the individual bonuses/stock options, etc. valid will simply
    reinforece the need for individual success over the good of the whole
    company.  Business A that steals or prevents business from going to
    the other businesses (similar to the recent problems we encountered)
    will be rewarding for business A, regardless of how good the folks are
    in the other businesses.  IMHO, this decision simply makes the 
    infighting success rewards stronger.
    
    Mark
    

We need a half dozen or so new VP announcements to improve morale around here,
don't you agree?

    Raise?  What's a raise?
    
    \dave

    Would someone care to comment on the applicability of Demming's laws to
    this situation?  It appears to me that every decision I have seen in
    the last two years *completely* ignores management's involvement in the
    problems.  A wage freeze smacks of inspecting quality in - at least to
    me.
    
    I'm struggling.  First, B.P. inherits a mess - but he knew what he was
    getting into.  Then, without doing much of anything (visible anyway),
    he gets a, what?, 400K raise.  Now we have the last few quarter
    results.  We don't get salary increases - performance, COLA, whatever -
    because the company isn't doing well.  He gets one to bring his pay
    into line with other CEOs?  Sorry, I have to conclude that the purpose
    is to increase attrition.

    
.0>         Digital management has decided to implement an immediate freeze 
.0>   in base wages and salaries as part of the effort to reduce costs and 
.0>   return the company to profitability, according to Richard M. Farrahar, 
.0>   vice president, Human Resources.
.0>   .
.0>   .
.0>   .
.0>         Consistent with Digital's "pay for performance" philosophy, 
.0>   however, performance-based incentive plans will continue where they are 
.0>   currently in place.  These include sales incentives, organizational and 
.0>   country success sharing programs, annual performance-based incentive 
.0>   programs and the stock option program.
.0>         In addition, funding has been increased for the FY94 Top Performer 
.0>   and FY94 Employee Recognition programs "to provide more financial reward 
.0>   opportunities for high-performing employees at all levels."
    
    This solves a mystery that has long baffled me: How can so many managers
    insist that "pay for performance" is real, and so many individual
    contributors call "pay for performance " a joke?
    
    The answer is now crystal clear. According th .0:
    
    o  "Pay for performance" is not implemented in "base wages and salaries",
        which have been frozen.
    
    o  "Pay for performance is manifested by "success sharing", "incentive",
       "stock option", "Top Performer" and "Employee Recognition" programs,
       which continue in these hard times and in some cases receive even
       more funds.
    
    How many managers are remunerated based solely on the former? How many
    individual contributors have experienced, have even heard of, any of
    the latter?
    
    
    EUREKA!
    

    
.40>    I'm struggling.  First, B.P. inherits a mess - but he knew what he was
.40>    getting into.  Then, without doing much of anything (visible anyway),
.40>    he gets a, what?, 400K raise.
    
    In all fairness, it was only $150,000.
    

The more often I read the Livewire announcement, the more cynical I become.
Can it really be the case that the "speakers" quoted and the PR dweebs
who authored it and provided the spin and the "positive outlook" actually
believe that the bulk of the populace of the corporation is so naive and
stupid as to buy any of it? Why do they bother? Is it just another way to
insult us? It reminds me of some silly Soviet commissar trying to incite
his starving, bedraggled underlings after a propoganda session - "Come on
comrades! Unite!"

Horsepuckey. Telling us there's a freeze, period, and saving the extraneous
bits would be a more genuine approach.

-Jack

    
    	Well, over here on the right side of the pond, we have had a
    payfreeze since 1991!  Hopefully, we shall start to get pay rises three
    years before those who are just starting their pay freeze now!!!!
    
    	There is some other news (rumour) over here:  poor Geoff Shingles,
    our departed MD had to make do with a Golden Handshake of a miserable
    �1,200,000.00 (that is about $1,680,000.00)!!!!  My only consolation is
    that he will have to hand over �480,000.00 to the Inland Revenue.
    
    				Malcolm.

    The *profitable* subsidiary Holland has had 4 rounds of right/downsizing
    and has a payfreeze since a year now.
    
    Charles
    

>.40>    I'm struggling.  First, B.P. inherits a mess - but he knew what he was
>.40>    getting into.  Then, without doing much of anything (visible anyway),
>.40>    he gets a, what?, 400K raise.
>    
>    In all fairness, it was only $150,000.
    
    
    	 -- which is three to four times most people's total salaries.
    

    last few
    
    Okay, I munged the numbers - I want to be fair.  Nevertheless, it
    appears that his salary is tied to what others in corporate America
    receive while ours are tied to 'performance'.  I need to remember this
    management style when I start my own company.  It will serve as an
    example of how not to run the company.

Pay cuts...

Stay tuned---

After all, it's only natural given the way things are going.

P.S. Has the PO been placed for the parking meters? ;-)

    .46...  nope, just did the math, it's more like 5.25X my annual GROSS
    salary, pun intended...  we won't discuss the net salary.  I was due
    this month...  ah well, financial solvency is _so_ unfashionable
    anyways, isn't it?

    After reading this announcement, I couldn't get the image of Alec Baldwin
    in "Geln Gary, Glenross" out of my head.

    >.46...  nope, just did the math, it's more like 5.25X my annual GROSS
    >salary, pun intended...  we won't discuss the net salary.  I was due
    >this month...  ah well, financial solvency is _so_ unfashionable
    >anyways, isn't it?
    
    	I was being generous of my estimates of individuals' salaries.
    	
    					andrew

    
    I think I'm stuck in a Stephen King nightmare.
    
    

    
    
    
    	Nahh! It's more like Freddy's return, over and over and over and...

    	Re: .54
    
    That's what pissed me off also. I've been expecting this freeze to
    happen. I expected it to take effect on July 1st. Someone who works for
    me has worked extremely hard over the past year and is low in the
    salary range. I made sure I got the review and paperwork in early to
    get his June increase. Now this. This person could easily get a 15-20%
    salary increase by going elsewhere. This sucks bigtime.
    
    The bonus/reward money is a crock. By the time what's left filters down
    to worker bees, you're lucky to be able to give someone a couple of
    hundred dollars. That's not going to keep good people here. With lots
    of jobs out there for software people, I wouldn't blame anyone for
    leaving under these circumstances...but, then again, that's very likely
    what they want anyway.

This company makes me sick.  Freeze the pay, that is a good way to get
us back on track. 

EXCUSE ME BOB PALMER, BUT HERE IS AN IDEA FOR YOU, CUT THE SLT PAY BY
20% AND GIVE TO THE PEOPLE THAT REALLY DESERVE IT........... YOU KNOW
THE ONES THAT ARE WORKING TO GET THIS COMPANY BACK ON ITS FEET.   THE 
ONES THAT ARE UNDER 30K A YEAR, 



                      <<< Note 3131.23 by STAR::DIPIRRO >>>
                                    -< AEM >-

    	Based on recent events, the AEE has been renamed to AEM, Achieving
    Engineering Mediocrity. By laying off the bottom rungs and driving all
    the best performers away, the medium performers will be left with
    confusing messages as to what they're supposed to be doing and no
    incentive to achieve anything other than mediocrity. Sounds like a
    success scenario to me!

    Re: .-1,.-2
    
     I agree....  A day before I got the salary increase letter approved
    no problem..  I signed the letter and gave the review/raise.  The
    next day the note came out.
    
     Such mis managment..  The raises only take effect every 3 months.
    They should have sent notice about this in April.  A month after the
    last ones and 2 months before the next..
    
    Sad, sad, sad....
    
    Jon
    

    Re. .54
    
      Where in the livewire report did you see anything saying that the pay
    freeze is retroactive for the current quarter?  What if someone got a
    raise back in the begining of the quarter? Is that person supposed to
    give the monies they received back to the company?
    
                                                  JRW

    I believe that the point being made was that if you don't have the
    money in your paycheck right now, you won't see it.  even if the paper
    work was in weeks ago, you're SOL.

    Note that TFSO payments are based on n weeks of your current pay level. 
    If you are TFSOd say week after next and you received a raise last
    week, you'd be getting your TFSO walking-around money based on the
    higher figure.  Now TFSOs are all being based on March salaries, even
    for people who haven't been formally tapped yet.

    So what's the big deal?  Are you all really going to miss the 2.2 %
    salary increase that Digital had planned for you?

    
    
    		I wondered when someone would come out with this
    	sentiment. REALLY ! 2.2 percent is not enough of a pay
    	raise for me to cry about losing this year anymore than
    	it was last year , or the year before that , or the year
    	before that........let me see......
    
    			40 hrs. x 52 weeks divided by 2 percent
    
    			Yep , what I thought, just about half the
    		sick time I had to take last year. The benefits make
    		the difference.........
    
    		Pablo
    
    

    
    
    In around '83-'84 when HP had just embarked on the PA-RISC program
    (Spectrum then), it went thru tough times - everybody took a pot shot
    at it (including the mighty Digital machinery!!). 
    
    Yep, there was ... INDEED... a pay cut lasting 6 months (don't recall)?
     10% cut if you're in management, 5% from individual contributors and
     as far as I knew, there wasn't ANY exceptions.
    
    
    

>    Note that TFSO payments are based on n weeks of your current pay level. 
>    If you are TFSOd say week after next and you received a raise last
>    week, you'd be getting your TFSO walking-around money based on the
>    higher figure.  Now TFSOs are all being based on March salaries, even
>    for people who haven't been formally tapped yet.
    
    Actually, people being TFSO'd last spring with termination day June 25,
    and pay raise scheduled for the same day, DID NOT see the pay raise in
    their TFSO money - being put on notice immediately cancels the raise,
    apparently.
       

          
    
    yeah, for some that 2.2% is nothing to sneeze about.  but for those
    performers that were slated for a whopping 5+%, who are at the bottom
    of their salary range, it's gonna be missed. 
    
    and that's looking at the small picture(which is so common).  that 2.2%
    would be a chunk of the next 2.2%, and the next.
    
    it all adds up over time.  or, now, it doesn't.
    
    bri

    Let's see, I walk into McDonald's and say - I will no longer pay more
    than XXX for your hamburgers.  And McDonald's says.......

     Re .56
    
    Well said ! At least I can think of one SLT member who is collecting 
    a huge pay for doing NOTHING. If one takes a closer look at the list of 
    SLTs, any one can easily identify this person.  If this person is canned, 
    no one will notice the differnce. Perhaps they can take this person's 
    salary and put it in the Bonus pool or use to pay some important
    company bills.
    
    In my opinion the reorganization begins with SLT. I am sure BP realizes
    which SLT members positions are nothing but fluff or fancy titles or make 
    shift positions created to keep some one employed.  I am confident he
    will do the RIGHT thing. 
    
    Nobody asked.. just my opinion !

>Note 3131.67  ELMAGO::PUSSERY 
>                     -< But what about the benifits (%^)! >-
     
>    		I wondered when someone would come out with this
>    	sentiment. REALLY ! 2.2 percent is not enough of a pay
>    	raise for me to cry about losing this year anymore than
    
>    		sick time I had to take last year. The benefits make
>    		the difference.........
    
>    		Pablo
    
    Well, 2.2% for say $35K/year is not going to alter one's life style, 
    but over time, it adds up. 2.2% of $50K+ is a usable sum of money.
    I hear rumors that some folks earn even more than that! So 2.2% 
    could be put to good use. Also, some were planned for ~5-6% or more.
    That is definitely going to be missed.
    
    Having been through two wage freezes in the past, I do not welcome 
    this one.
    
    As for benefits, well, they just keep chipping away at them too. 
    
    /Bob

    An article in the local newspaper this morning about Digital's
    wage freeze states that bonus and incentives for high level
    executives will NOT be affected.

    
    	And there you have it... Any questions?
    
    	Is anybody really surprised?
    
    		the Greyhawk

    I'd say that would be *politicaly* correct.

>>    An article in the local newspaper this morning about Digital's
>>    wage freeze states that bonus and incentives for high level
>>    executives will NOT be affected.

	The memo said the same thing......why the surprise?


Pat

    re: .72 (BP evaluating the SLT)
    
    >   I am confident he will do the RIGHT thing. 
    
    That's 80's talk... we no longer do the right thing!
    
    Sandy
    (note: absence of smiley's intentional.)

    RE:.74

    	You really weren't surprised where you?  Anyway I think I've figured
    out why they implemented the pay freeze.  They're using it to fiance
    the price cut on the Alpha chip.  It really sucks when they give you a
    pay raise tell you the amount and then tell you it'll be affective in
    June 13th then 4 or 5 days later they implement a pay freeze.

    Joe

    P.S.  I'll bet my performance review 
    reads better than BP's and look what 
    I got.

    This reminds me of something I came across recently:
    
    In the Beginning was the Plan
    And then came the Assumptions
    And the Assumptions were without form
    And the Plan was completely without substance
    and the darkness was upon the face of the workers
    and they spoke among themselves, saying
    'It is a crock of S__T, and it stinketh'
    And the workers went unto their Supervisors and sayeth,
    'It is a pail of dung and noe may abide the odor thereof.'
    And the Supervisors went unto their Managers and sayeth unto them,
    'It is a container of excrement and it is very strong, Such that none
    may abide by it.'
    And the Managers sent unto their Directors and sayeth,
    'It is a vessel of fertilizer, and none may abide it's strength.'
    And the Directors spoke amongst themselves, saying one to another,
    'It contains that which aids plant growth, and it is very strong,'
    And the Directors went unto the Vice Presidents and sayeth unto them,
    'It promotes growth and is very powerful.'
    And the Vice Presidents went unto the President and sayeth unot him,
    'This new plan will actively promote the growth and efficiency of this
    Company, and in these Areas in particular.'
    And the President looked upon The Plan,
    And saw that it was good, and the Plan became Policy.
    
    This is How S__T Happens.

    it sounds like scientific evidence to me...

    .80
    
    		THAT was GREAT!  Gimme an electronic frame, please!
    
    							Tex

    	.80
    
    		PERFECT. I'll bet lunch RP beieves it, too.
    
    			the Greyhawk

re. 80

We call that the "Erich Honecker way to tell your superior". This
phenomenon seems to work in nearly every company or country. The information
gets better the higher the level of manager or politician. Nobody has the
courage to tell the truth because everybody thinks he will be fired to
tell the truth.

Stefan�

    ABSOLUTELY WONDERFUL!
    
    MAY WE COPY IT???
    
    
    TONY

    Re.80
    
    Yes you may copy it as it's not copywritten or protected in any way.
    
    Maverick

    	My wife and I where both lucky enough to get stiffed out of our 
    raises a few weeks ago, my wife was also planned for job level 
    increase (promotion) which she hasn't got yet.  Upon questioning her
    manager she was told that promotions where also frozen.  I don't recall
    seeing that in any of the announcements that came out or did I miss it?
    Can anybody shed any light on this?  Thanks

    Joe

Mail came out about a job code freeze back on the 6th of June.  I'd post it
here but I do not have the author's permission.

It did say that Job Code Changes are temporarily delayed through the remainder
of Q4 up to and including July 2nd.  It also said that another notice would be 
coming out when the delay was removed.

bjm

<many forwards removed>
From:	POWDML::POWDML::MRGATE::"A1::VANDERPOT.MAURICE"  7-JUL-1994 13:41
To:	LJSRV2::HEINTZ,MPGS::CLARK,MROA::MCQUADE,WECARE::COTTER
Subj:	Job Code Freeze                                                        1

From:	NAME: Maurice Vanderpot @MSO        
	FUNC: Human Resource Information      
	TEL: 223-7113                         <VANDERPOT.MAURICE AT A1 at POWDML at PKO>
To:     See Below

Effective Monday, July 11, 1994, the freeze on job codes changes is lifted. 
Please communicate this information throughout your organization. All 
transactions for pending job code changes should have an effective date of 
July 11, 1994 or later as appropriate.

No job code changes should be retroactive.


If you have questions, please call.


Maurice

(223-7113)

To Distribution List:
<removed to save space>

    RE: Last two reply's

    	Thanks for the quick reply's.

    Joe

    This is interesting in view of one of the reasons codes where frozen.
    According to the personnel person I spoke with, job codes where frozen
    because there where to many promotions in the work that would not meet
    minimum on the wage scale. With a salary freeze, they had to freeze the
    job codes as well. It seems that you have to bring people up to minimum
    of the pay scales you have defined. However you can always give people
    the work load and not the title, and you don't have to be concerned
    that you're not paying them adequately.
    
    Gail, still waiting...

    Any news when the freeze will be lifted?

re: .92
>   Any news when the freeze will be lifted?

I would guess it will be when Digital becomes profitable.  And that appears
to still be over the horizon.  I think the last freeze was 6 months, and
I'd be very surprised if this one was shorter than that.

	Steve

re Note 3131.93 by SMURF::STRANGE:

> I would guess it will be when Digital becomes profitable.  And that appears
> to still be over the horizon.  I think the last freeze was 6 months, and
> I'd be very surprised if this one was shorter than that.
  
        I thought we were to be profitable by the end of the calendar
        year?

    My sources in HR say 18 months.

    
    Does the wage freeze affect the so-called "Senior Leadership Team"
    (SLT)?
    
    re: .-1
    Does 18 months of salary freeze imply that our "plan to return to
    profitability" will take 18 months?  Or is the 18 picked out of a hat
    like many other numbers are?
    
    Thanks,
    
    Dennis
    

    no 6 3/8 would have been picked out of a hat.  18 probably came
    from a more sophisticated device, such as a roulette wheel.
    
    ed

6 3/8 is a very small hat.  Are you implying that pinheads are running the
company?

    .98:
    
    I'd think that 3 3/8 would be more appropriate for a pinhead.
    
    Dick

DEC 19 5/8 + 1/4; DJIA unknown

    RE:.98

    Great reply I haven't stopped laughing yet.  

    Joe

    Re: .98 and .99
    
    They seem to think they're wearing party hats, but they sure look
    like dunce caps from here!
    
    Meanwhile, I'm told to wear more and more different hats every day.
    

    Someone in a position to know such things says that the wage freeze was
    scheduled to be in effect for 6 months.  Unless something changes, we
    should see the wage freeze end before the close of the calendar year.
    
    -- Russ

	hahahahahahahahahahaha


	Sorry, I thought I was having a dream...


							mike

    Re .104,
    
    Russ,
    	We just took a 1.7 billion dollar loss this quarter, not counting
    the 1.2 billion dollar restructuring.  Do you honestly think you are
    gonna see a pay raise?  If you want a sure bet, bet against a raise...
    
    Jim Morton

RE:  <<< Note 3131.106 by CSC32::MORTON "Aliens, the snack food of CHAMPIONS!" >>>

>>    	We just took a 1.7 billion dollar loss this quarter, not counting
>>    the 1.2 billion dollar restructuring.

          No, that includes the $1.2 billion.

                                     Greg

    RE .107;
    
    >      No, that includes the $1.2 billion.
    
    
    Re the Q4 results entry;
    
>              Digital reports Q4, year-end operating results
>
>   
>         Digital today reported results for its fourth quarter and year end, 
>   which ended July 2, 1994.
>   
>         For the quarter, the corporation reported a net loss $1,746,360,000 
>   or $12.64 per common share.  Excluding restructuring charges of $1.2 
>   billion and non-cash reductions in the carrying value of intangible and 
    
    Greg,
    	Maybe I misunderstand, but it says above  "Excluding restructuring 
    charges of $1.2 billion".  
    
    
    Jim Morton

    Re .108:
    
    You left out the rest of the sentence:
    
         For the quarter, the corporation reported a net loss
         $1,746,360,000 or $12.64 per common share.  Excluding
         restructuring charges of $1.2 billion and non-cash reductions
         in the carrying value of intangible and deferred tax assets
         totaling $380 million, the net loss for the quarter was
         $160,360,000, or $1.22 per common share, compared with net
         earnings of $113,196,000, or 85 cents per common share in the
         comparable quarter a year ago.
         
    The net loss for the quarter was 1,746,360,000.  If you subtract
    (exclude) from that the $1.2 billion restructuring charge and the $380
    million other changes, the net loss is $160,360,000.
    
    
    				-- edp
    
    
Public key fingerprint:  8e ad 63 61 ba 0c 26 86  32 0a 7d 28 db e7 6f 75
To get PGP, FTP /pub/unix/security/crypt/pgp23A.zip from ftp.funet.fi.
For FTP access, mail "help" message to DECWRL::FTPmail or open Upsar::Gateways.

    At $160+ for Q4, we lost a tad over $20/second.  This is an improvement
    of almost $5/second over Q3, where we lost almost $25/second. 
    
    					andrew

    
    I stand corrected.  Heck!  Maybe we can get a raise.  :-)
    
    Jim Morton
    

    Note that in Q3 we paid ~ $5M in taxes while in Q4 we paid $73M in
    taxes.
    
    So the operational loss before taxes was about $87M in Q4 vs. $178M in
    Q3.
    
    Q1FY95 has got to show a large operational loss though. One analyst is
    predicting a $190M operational loss in Q1.
                                              

    re: .106
    
    I never said you'd see a pay raise, I said that (unless something
    changes) you're likely to see the freeze lifted.  People have been
    operating without raises for years without the banner of a "pay
    freeze".
    
    Raises in this company have had little to do with profitability (I'm
    sure you can think of an example of a large raise given to someone who
    missed his goals during a loss year, for example).  Even without the
    freeze, you might not get a raise -- or notice it if you _do_ get one.
    
    -- Russ

	Pay freeze to thaw, Palmer tells employees at DVN taping 

         The salary freeze has been lifted.
         President and CEO Robert B. Palmer gave employees the news today 
   during a taping in Littleton, Mass. of the Q2 Employee Forum, which 
   will be broadcast on the Digital Video Network (DVN) on Nov. 4.
         He said that the salary freeze was being lifted on a country-by-
   country and business-by-business basis.  Palmer added that ending the 
   salary freeze does not mean that everyone will see a raise right away.
   He emphasized that salary actions will differ from business to 
   business, and will be a function of those businesses.   
         In addition to the lifting of the salary freeze, Palmer discussed 
   the progress Digital has made toward renewed profitability and offered 
   his perspective on the company's new advertising and marketing 
   communications campaign.  
         The Q2 Employee Forum DVN will be broadcast on Nov. 4 at 1:30 
   p.m. (EST) in the U.S.; 1:30 p.m. local time in the UK and Ireland; and 
   2:30 p.m. local time in Europe.

    
    	...nahhhhhhhhhhhh
    	:-)
    	/john

    
    .....maybe the BOARD OF DIRECTORS reads note.......remember they gave 
    
    BP his last raise.......
    
    hornet
    

Trick or treat?

	Steve

trick....no one that I know will get 140% raises because thier workload increased

dave

    Interesting that less than a month after being chastised by Business
    Week, and less than two weeks after this letter was sent in, Palmer
    thought that lifting the salary freeze might be in the company's
    best interest:   
    
    "Leadership, DEC Style
    Wait.  Let me get this straight.  While Digital Equipment Corp.
    employees cannot expect salary increases for the foreseeable future and
    while thousands of them have lost, or will lose, their jobs as a result
    of mismangagement, two members of senior management have received 18%
    and 35% increases ("Payoffs at a downsized DEC", Up Front, Oct. 3)?
    Do these guys know how to lead, or what?
    S.P. Joyce
    Northborough, MA"

    If one announces the lift in October, spirits can be raised three
    months before any cash is actually put on the line.
    
    ed

    notice the fine print (by function by area)
    
    it could still be a long time before you or I recieve anything
    
    
    Brian V 

    
    re -1
    >>it could be a long time before you or I receive anything
    
    Exactly.  I read it as each business will have a lot more
    freedom around not only when, but how they reward their people.
    They could get real creative with incentives, cash bonuses, etc,
    not necessarily increases to salary.  Also, the "poorer" businesses 
    won't have as much money to put towards a salary plan.  Then, consider 
    that increases are only input on a quarterly basis, the first *possible* 
    date being March.  The first to see increases will probably be those who 
    are below minimum for their salary range or very low in the range..they
    will need increases so as to avoid equity issues.
    
    Considering all of the above and what little money they will probably
    have to plan with, it could be a very long time indeed before the 
    majority of folks see a salary increase.  
    
    My take is that the freeze is only coming off for purely financial
    reasons, not to improve Employee Relations.  It is *extremely*
    difficult for a company to "catch-up" if it falls too far behind the
    market in what it pays it's people.  
    

>>>    notice the fine print (by function by area)
            Function = V.P.  Area = MLO, PKO
    		

    >then, consider that increases are only input on a quarterly basis, the 
    >first *possible* date being March.
    
    Where did you see that the first possible date would be March.  What
    happened to December?
    
    Bing

    
    ....is that the sound of santa claus comming down the chimney with a
    
    big bag of money....no its not money its a bag of left over DIGITAL
    
    TURKEYS.....
    
    HORNET
    

    
    I didn't *see* that the first possible date would be March.  
    
    I put it that way because:
    I doubt very much they would pick up where they left off with
    the "old" 1994 salary plans.  If they input December's planned
    increases, that wouldn't be fair to us who were planned for June 
    and Sept.  On the other hand, if they implemented June, Sep and 
    Dec's increases all in Dec, it would defeat the purpose of the 
    freeze in the first place.  
    
    I think they will wipe the slate clean/forget the remainder of 1994, 
    will plan in Dec-Jan for 1995, and for the past 2 yrs increases have 
    been processed quarterly (Mar,Jun,Sept, Dec).  thus my guess that the
    first anyone will see an increase would be March.
    

    re .127
    
    How about implementing only June increases in December (ie, move
    everyone out 6 months)?
    
    Bing

    
    >>How about implementing only June increases in December
    
    :-) I'll bet you were planned for June.

I'm sure this is a very complex issue, but I suspect that the general idea is
that when the freeze is lifted for your organization you will have as many
months left to a raise as you did just before the freeze hit, rounded up to the
end of the next quarter. Also, your raise will likely end up being what was
planned for you before the freeze. Your performance improvements during the
freeze will likely end up in the following raise, if there is one ... 

>Per

    This sounds like a political campaign. Just before the annual meeting,
    it's announced that the pay freeze is going to be lifted. Do you think
    Palmer would use this as a political toy? Do you think he did this so
    that the annual meeting may be a little more pleasant? Does senior
    management in this company really believe people are leaving in droves
    because of the pay freeze?
    
    Inquiring minds want to know....

    the way these freezes "NORMALLY" work is your wage review date
    / salary increase date is bumped out by however long the freeze 
    is.
       	
    
    
    Brian V
    

    OR is it just so the troops don't whine so much when the general's
    get their raises?

Rumor is that the business management system that managers use to forecast and
implement salaries is currently offline.
FWIW

Maybe the raises are being funded buy the extra money that Digital is 
pocketing from their reduced support (-3%) of the medical health plans.
Let's see if they collect $150+ more from every employee then they can
give it back and promote it as a raise.  Somes like an advertising
campaign is needed !

If we don't get raises in Jan... Our pay will not only be frozen...
it will be going    DDD...
                           OOO...
                                 WWW...

>Maybe the raises are being funded buy the extra money that Digital is 
>pocketing from their reduced support ...

Aaahhhh.  Thank you.
Now I know what's been nagging me about this announcement.

Nowhere was it EVER mentioned that they are, in fact, funding raises
AT ALL.  They just lifted the ban, they didn't actually make any incremental
salary money available!

    Of course they can't fund any new raises!  Palmer and the VP's used up
    all the FY95 raise money earlier this year!....

    Re.127
    	What is all this about '94 Salary Plan?
    
    	Over here on the right side of the pond (well, UK anyway), we
    haven't had any pay rises since Fiscal '91!!!!!!!
    
    	Actually, in Fiscal '92, a percentage of employees did have a small
    increase - like 2%, but NONE of my group did.  Since that time, we have
    been told that there is NO Salary freeze, just that all Salary reviews
    are ZERO%!!!!!!  Then the official pay freeze in '94.
    
    	The result over here is that most functions are up to 50% behind
    the market - which is itself a big problem for the company in "how do
    we catch up?"
    
    				Malcolm.

    ... and then there's the Annual Stockholders Meeting memo sent out
    yesterday by Dick Farrahar, VP of Human Resources stating that
    "Employees who are shareholders are entitled to attend, however they are
    neither required nor encouraged to do so."  Apparently the whining 
    employees might be too much for the external shareholders to handle.

    
    ...sounds like the board and SLT are running scared or maybe there will
    be things going down that they don't want the grunt work force to know
    about.....really smells fishy (like rotten mackrel) to me.....
    
    you can own stock but were not advising you to attend....nice message
    
    not really.....i think i understand why people are leaving in droves
    
    HORnet
    

How do you catch up?  By leaving Digital.  Seriously - I've been through
more pay freezes than I can count and there was NEVER any attempt to
allow employees to catch up or to reward them for their perserverance through
hard times.

I see I'm not the only one who suspects that the lifting of the pay freeze
is primarily intended to benefit senior management.  It really worries me that
I've become this cynical.  But I heard today that there's been "20% attrition"
from Engineering - I think this may be an annualized figure from a shorter
period, but there certainly has been a large exodus of talented people who
realized that there are companies out there who will treat them better than
does Digital.

					Steve

    My local HR rep pointed out that our old salary plans are gonzo.  Nobody
    in our organization will get a raise until new plans are approved, and 
    even then only if our business is approved for raises.  So having been
    approved for a raise in June doesn't mean that you'll get one in March,
    which I presume is the earliest anyone (except upper management :-) )
    will get a raise, if new plans cannot be put in place until January.
    
    I don't know about other parts of engineering, but *we've* sure had a
    lot of attrition, and the salary freeze has been part of it.  Lack of
    trust of senior management has been part of it, too.  The two issues
    do seem to link together.  Most of the folks I talk to who are sticking
    around are doing so because they like our group and local management.
    
    	Larry
    
    PS:  Jose Ramirez never did respond to my message asking how much 
    this was expected to save Digital, and whether it applied to senior 
    management.  I didn't bother to ask a second time -- I thought the
    first answer was clear enough.  

    oh come on folks, who in their right minds worries about
    giving raises to variable workforce line items? DEC management,
    for once, makes a decision that is NOT contrary to last
    week's LRP and strategy, and you jump all over them for it.
    
    You're heartless, you know, truly heartless.
    
    bk

At a communication meeting today with my new VP, Philipe Ribeyre, he
said salary planning would be done over the couple of months with the
implementation starting in Q3.  This is for the Workstations Business
Segment.

Garry

    re .143:  I didn't know a line item could get a raise.  I don't even
    know what a variable workforce line item is.  Is it like a resource?�x�
    
    	:-)
    	Larry

    Hey folks,
    
    Quit the whinging, so life's tough in the fast lane. If you can't
    hack the downs with the ups then maybe you should go and get your big
    bucks elsewhere (if you can...) and let us folks dedicated to the
    future of DEC get on with it without all this morale busting bullsh*t
    
    Nothin's ever perfect but think what it would be like not getting a
    cheque next month, all this parity garbage means zip if the company
    folds and everyone loses.
    
    Keep the chin up and get on with it.
    
    An Aussie with a can do attitude.
                                     

    So when did free speech become illegal?

    never did, but tell me what it has achieved so far.
    
    downunder...

    
    >>> never did, but tell me what it has achieved so far.
    
    awareness.... different parts act differently. this is ONE company now.
    
    -Mike Z.

    I thought it was a collection of different businesses each responsible
    for their own profit & loss.  Given that, they will act differently.

    Ever hear the one about the football gane between X and Y where every 
    player on the X team played a flawless game, but X lost the game
    because they weren't a "team".