Silicon Valley companies are forcing employees to take vacations as part of a way to cut costs and deal with the slumping high-tech economy.
Many of the forced vacations are coming this week as Americans mark the July 4th Independence Day holiday, but the moves are sparking complaints rather than celebration.
At estimated 25,000 workers are being told to stay home by such Silicon Valley companies as Sun Microsystems, Xilinx and Network Appliance.
Outside of the Valley, tech companies like computer maker Compaq are also telling some 33,000 workers to take the week off.
Companies like Hewlett-Packard, beside asking their employees for voluntary salary cuts, are also telling them to take some vacation, though so far, the company is letting its workers decide when to schedule their time off.
The move is an attempt by the company to trim expenses. Although salaries are paid during the vacations, emptied offices let companies cut back on utilities, security and traditional Silicon Valley perks, such as discount cafeterias.
The mandated time off also reduces the number of vacation days being credited to workers. Banked employee vacation days is carried as a debt on company books.
But in response to a number of employee complaints, California's labour agencies are probing the practice for violations of state wage laws.
Employers argue the forced vacation practice is nothing out of the ordinary and the time off is simply vacation. Hearings on the practice have been slated for August.
The enforced vacations come at a time when California is again sliding into a power crisis, as another summer heat wave hits the state and power officials again issue warnings of rolling blackouts.
AFP