Clappy-happy HP wishes employees Happy Holidays!

WHEN HP asks its employees to take a vacation, it is usually good for morale, right? If you get Christmas off, it is even better, no? Well, in HP's case, no. It seems that HP, in order to save money (1), is shutting down the company this coming Christmas. Employees will be forced to take time off, and, if they hold true to form, will have it taken out of their vacation time (2). Barring that, don't expect a paycheck where it is legally allowable to do so.

Add in the fact that after the Compaq merger, everyone got a week of vacation lopped off, and you have basically no vacation time in 2004 if you had two weeks pre-Compaq. Be happy citizen, happiness at the New HP is mandatory. So are vacations, as long as it fits our definition of vacation.

So, think happy thoughts while you read the memo below, and smile. You get Christmas off. µ

(1) I don't see Dell doing this, but I guess Mikey doesn't have planes to pay for.
(2) See #5 below, and ask yourself what you think it means to you.

For calendar year 2004, HP's Executive Council(EC) has approved a global, mandatory holiday closure, where legally permissible. In the United States and other countries that observe Christmas as a company holiday, HP offices will close for a specified period at that time. Countries that do not observe December 25 as a company holiday will identify a comparable closure period and communicate the details regionally. As in previous holiday shutdowns, implementation in the various countries will be subject to local law and to prior consultations with works councils and employee representatives, where legally necessary.

We are communicating this information now because we recognize that employees appreciate ample time to plan how they use their vacation/time off benefits throughout the year. With the exception of this specific holiday closure, HP currently does not plan to shut down any other time during the year. If and when additional closures are to occur, employees will be notified as far in advance as possible.

By closing facilities for this short period, HP achieves significant savings, especially critical in the current economic environment. Shutting down around a major holiday also allows employees to enjoy more time with their families during a period when many traditionally take vacation. As in previous years' holiday closures, each of HP's businesses will determine which organizations will continue operating during the shutdown to meet critical customer needs.

Specific information regarding the 2004 holiday closure, including logistics and reporting tips, will be provided by the country/region as we get closer to the closure.

Best regards,
Marcela Perez de Alonso and Bob Wayman

1. What is the decision being announced?
HP's Executive Council has approved a mandatory holiday closure for 2004. While this is intended to be a global shutdown, implementation will be managed on a country-by-country basis in accordance with local legal requirements and required consultations with works councils and employee representatives.

2. When will HP offices be closed?
Implementation will be managed on a country-by-country basis, which means that the closure dates will not be the same across the world. For example, in the U.S. HP offices will close from Sunday, December 26, 2004, to Saturday, January 1, 2005. Countries that do not observe Christmas as a company holiday will identify a comparable closure period.

3. How do I find out when my country's shutdown will occur?
Details for each country will be communicated regionally through local communication vehicles. Specific shutdown dates have already been determined for the U.S. and are outlined below. Note: These days also include any specific paid holiday(s) that may occur during that shutdown period.

United States - Dec 26, 2004 - Jan 1, 2005

4. How will I know if my organization will remain open during the shutdown?
As with previous company shutdowns, a limited number of employees will work during the closure to meet business-critical customer needs. These employees will be notified as far in advance as possible.

5. Will employees be asked to vouch vacation time for days that are not company holidays?
Treatment of time off will vary from country to country. Country specific details will be communicated closer to the actual shutdown.

6. Why is HP implementing the mandatory closure?
By closing facilities for this short period, HP will achieve significant savings, especially important in the current competitive market.

7. Will there be other company shutdowns in 2004, such as the 4th of July holiday in the United States?
Currently, HP does not plan to shut down at any other time during the year, with the exception of the holiday closure just announced.