10/30/2007, Huawei just announced a plan aiming employees with more than 8 years working experience in the company. Huawei said those employees volunteerly resigned from today's position, and then they will contend for new positons in Huawei. if they cann't get a new position, they will have to leave Huawei. Huawei will give them a good compensation. It is said that 7000-10000 employees will be affected by this plan, and Huawei will invest more thant1billion RMB on this.
Local media pointed out that Huawei is avoidting the new employee contract law which will be in effect from Jan. 1 2008. The law requires all employees who have more than 10 years experience in the same company will have a not-fixed long term contract automatically. Many entrepreneurs in China is worrying this law will increase their layoff cost, and they are are looking for ways to avoid this. Huawei is the first big company who makes adjustment towards this law.
Things maybe not such easy. from my point of view, Huawei is trying to unload its historical load. Because of its special bonus policy in the first 10 years or 15 years, Huawei's old employees have many special benefits, their bonus is much bigger than their salary revenue each year. But those later come-ins donot have this advantages. In Huawei, it seems there is two classes. Huawei's leader maybe think this is a problem they have to solve, otherwise, it will have big influence on Huawei employee's morales.
You may never see this happened in other company, But this is Huawei, it is not the first time they do this.
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2 comments:
Is this an official statement from Huawei?
Wonder what engages a big company to take such steps? Guess its a new HRM strategy to motivate the young staffs &/or to reduce turnover among them!
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