IT company CapGemini is looking to cut the pay of some older workers by up to 30%, union officials have told the Financieele Dagblad

Last month, board member Jeroen Versteeg admitted the company had begun talks on cutting the pay of less productive older staff who cost more than they deliver.

There is a ‘mismatch between what people earn and what they can do’ and the relationship between older and new workers’ pay has become skewed, Versteeg said. Only in a few cases would the pay cut be above 10%, Versteeg said.

Reorganisation

But according to Han ter Halle of white collar union De Unie, nearly all its 15 members who have been approached so far have been asked to accept a cut of between 20% and 30%. ‘This is what the other unions are saying as well,’ Ter Halle told the FD. Most of those asked to take a pay cut are over the age of 50.

If workers do not accept the pay cut, they will be moved to other jobs, with the appropriate training. If that does not work out, they face being made redundant, the union said.

Versteeg said last month the IT sector has a more urgent need to limit personnel costs than other industries, pointing out that turnover has gone down sharply since 2008.

In addition, hourly rates have also been reduced because much work is farmed out to India, he said. Some specialisms are now paying around €40, which is a less than a plumber earns.