Microsoft Cuts Worker Benefits to Save $80 Million a Year

[NNN0LHI]

http://ap.tbo.com/ap/breaking/MGAMSUA0HUD.html

REDMOND, Wash. (AP) - Microsoft Corp. is reducing prescription drug benefits and employee stock discounts to save at least $80 million a year, workers have been told.

The cuts will "better align our benefits with those of our competition while still keeping us ahead of the market average," Kenneth A. DiPietro, vice president of human resources, wrote in an e-mail to employees Tuesday.

In September, Microsoft withdrew a stock option plan that once made a number of employees millionaires but in recent years yielded little because of stagnant share prices.

Since then, Microsoft has given employees smaller amounts of stock outright.

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[freetobegay]

1. This morning it was 40 million.

Seems like everbody has trouble with numbers! See what Bush is doing to us!

[bearfan454]

2. IBM did all of us that way in the mid 90's.

We had free insurance, then we had to start paying for it. No limit on how long you could stay off sick up to 2 years as long as you had a Dr's note. That will never happen again anytime soon.

[denverbill]

3. Jesus H Christ. Microsoft has like $40 billion in CASH!!

They could fucking pay for free prescription drugs for every employee for the rest of their lives without making a fucking dent in the pile of cash.

But no. Some fucking dickhead middle manager thinks he needs to prove his worth to the company by slashing expenses to the detriment of his coworkers, so he can get his fucking raise.

[mulethree]

5. they're just making people use generics when they can

They still pay for prescriptions.

[denverbill]

9. My problem with it is the arbitrary nature of it.

Is Microsoft profitable? Yes, hugely. $80 million is a drop in the bucket. But for no particular reason other than to cut their costs, the just decide to force employees to use generic drugs and stop giving them discounts on buying stock.

Why? Was it because health care costs were KILLING them? No. Was it because MSFT was short on money? Obviously not. The only point of doing it was to give them a microscopic increase in profits. Nothing else.

The company I work for did something similar. They hired an outside company to 'analyze our benefits package'. Naturally, this outside company decided we were being overly generous with our compensation package, and instead of paying for 1 1/2 years average salary in life insurance, they were going to cut it to 1 years insurance. We were making money. The benefit had been the same forever.

But some dickwad pencil pusher just decided he was going to prove his virtue by cutting expenses, for no reason other than to make himself look good. If we were teetering on the brink of bankruptcy, by all means, do it. If it comes down to layoffs versus benefit cuts, fine. But when it's just done to increase the bottom line, it stinks.

[snippy]

20. Well said. n/t

[loftycity]

4. Constant state of fear-Corporate Fascism-keep employees fearful

This is dime store psychology to get people ready for the Walmartization of the US.

[tom_paine]

10. Exactly

[Nomad559]

6. .

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=105x1162369

[w4rma]

7. Bill Gates *could* take a salary/benefits cut and pay for this himself. nt

[snippy]

21. Gates has cut his own and Steve Balmer's pay.

Each receives a salary of "only" $865,000 and neither receives stock options any longer. Their current compensation is much lower than that of most CEOs of S&P 500 companies.

[w4rma]

23. really? I did not know that. Do you have a source for that info? (nt)

[TheFarseer]

8. Why should Bill Gates eat it to pay for benefits?

He owns the company and say what you want about his questionable business practices, but he's never been called stingy with his money. Usually I would never say something like my subject line, but I have heard that Microsoft employees are very well taken care of. You get hired by Microsoft and you are set for life. Like it says, "The cuts will 'better align our benefits with those of our competition while still keeping us ahead of the market average,'" Why do you think everyone wants to work for Microsoft?

To me this screams that our health care system is broken and costs are well beyond what is reasonable. This has been going on for a while now, but W is making it worse. I would have to pay $200 a month and my company would have to pay $210 if I participated in the health insurance program at work - at that is for a single 25 year old in a low cost of living state who's never seen a hospital in my whole life. That's completely unreasonable and a huge drain on companies. Microsoft has alot of cash in reserve, but they didn't get it by throwing it down a hole.

[Bandit]

18. Taking care of your employees is not throwing it down a hole

Microsoft had very loyal employees for an awful long time. The employees worked their hearts out for Microsoft. I don't see that happening now.

[Merlin]

19. Horse petunias. I own a company, and I'd NEVER cut their benefits.

I'd cut my own pay first, and I have.

It's just so godam Republican to assume the employees should take it in the rear BEFORE MANAGEMENT every time business dips.

Management is generally paid better, and management should take the first hit. Any other policy is indecent, immoral and--in the end--counterproductive.

This is a stupid move on Ms part. If Gates were still running the co. he would never do this.

[havocmom]

11. Prediction: Huge increase in viruses exploiting MS operating systems

and lots of new virus scanning companies springing up.

No, havocmom is definitely NOT a computer guru. She is, however a keen observer of human behavior. Mr. Gates and associates just pissed off a bunch of bright and skilled people. The days of loyalty to one's employer have finally caught up with the employers' obsessive concern with the next quarter's bottom line. Employees will be only as loyal as employers.

Guerrilla warfare takes many forms and is the weapon left to those with little else. It is also pretty effective in most wars.

[myomy]

12. My god, how Republican.

.

[Yavin4]

13. Corporate Weasels Like These Are Doing More To Bring About Socialism

than all Left-Wingers and Liberals combined in America are doing. The critical mistake that these modern-day facist keep making is that they foolishly believe As Iraq shows, people will rebel to facism.

[74dodgedart]

15. Marx was a result, not a cause

Thomas Jefferson was a result, not a cause

--John Steinbeck.. The Grapes of Wrath

[Jeff in Cincinnati]

14. ...and the recovery continues unabated

We have to be very careful that the Bush Administration doesn't pull off a "rope a dope" and get the Democrats to focus strictly on the number of jobs created by this economy (or not created by the economy, as the case may be). It's likely that every month between now and November will show increases in jobs, allowing the Republicans to claim that the Bush Economic Plan is working.

Focus on the quality of those new jobs, and the quality of those jobs that remain. Eighty percent of the "new" jobs created last month were in the service sector, and temp agencies were the biggest new employers. And then you have the folks at Microsoft who are having their benefits "realigned" to preserve the corporate bottom line.

[Name removed]

16. Deleted message

Message removed by moderator. Click here to review the message board rules.

[Rex]

17. Save 80 million a year, while Gates is worth 40 billion.

He must be worried about someone living a decent life while they make his fat ass richer.

[dArKeR]

22. Microsoft trimming benefits to save money - TT

http://www.taipeitimes.com/News/worldbiz/archives/2004/05/22/2003156545