Compaq staff to get no bonus due to difficult year

TECH SECTOR: Compaq's 2,100 Irish staff will receive no bonus for 2001 following an extremely difficult year for the US computer and services firm.

Mr David Wright, managing director of Compaq Ireland, said the firm's profit share scheme would normally be paid out next month but would not be going ahead. The firm would pay out to people who achieved certain sales targets, he added.

Mr Wright also admitted the company had made some employees redundant during the year - something the company has consistently denied during 2001 - as it reduced staff numbers in Ireland by 100.

Yesterday, it was confirmed Intel's 3,150 staff in the Republic would be paid a bonus of about €6.35 million (£5 million) on the semiconductor firm's performance during 2001.

But thousands of high-tech employees have missed out on bonus payments over the past year due to a sharp fall in corporate profits. The values of employee share schemes have also collapsed due to reductions in stock prices.

Mr Wright would not rule out further redundancies at Compaq but, given the company's market share, said he felt it was in a good position.

Compaq has also confirmed that it will begin moving almost 300 staff who work at its East Point, Dublin office to its site at Clonskeagh from March. This is not expected to impact on job numbers. But the proposed merger with Hewlett-Packard, which is to be voted on in March, may affect the two firms' Irish operations.