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Last Updated: Friday, 28 May, 2004, 21:35 GMT 22:35 UK
Microsoft workers bemoan cutbacks
Microsoft headquarters
The future looks less rosy for Microsoft staff
A plan by the software group Microsoft to save $80m by cutting back on fringe benefits appears to have caused much dissatisfaction among its workers.

An informal and internal poll of 3,000 staff, obtained by Reuters, revealed widespread discontent, the agency said.

The poll found that three in four were "very dissatisfied" with cuts to stock discounts, prescription drug payments and parental leave, Reuters said.

Other perks will stay, such as a free health plan, gym and beverages.

"These benefit changes will significantly reduce our operating costs," human resources boss Ken DiPietro told staff last week when the cuts were announced.

"They also better align our benefits with those of our competition while still keeping us ahead of the market average," he said in an email to staff.

But some staff seemed to think the cuts were unnecessary.

"The revenue that they're going to save compared to the cash they have on hand is just a drop in the bucket," said one anonymous member of staff.

Microsoft has $56bn in cash reserves and brings in $100m in revenues per day.

Union membership

Microsoft is well known in the computer industry for providing generous benefits.

In return, staff tend to be loyal and willing to work long hours.

"It's a turning point in labour-management relations at the company," said union activist Marcus Courtney who is trying to unionise Microsoft staff.

"There's no question that the benefits that Microsoft employees have enjoyed are legendary. [but] those benefits are not guaranteed to continue in the future."




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