EMC lauds Israel, cuts workers' wages
After posting record profits for 2011, global information and virtual infrastructure giant's managers inaugurate new center in Israel while in next room 130 Israeli students learn of salary cuts. 'Changes were in line with the law,' company says
At the same time, the heads of the company's security division notified 130 students working at the company's Internet fraud detection unit of a salary cut.
The company will cut the rates it pays for night shifts and weekend shifts as well as rates for newly trained recruits in its RSA security division. The move is expected to cut the company's costs by NIS 500,000 (about $135,000).
Twenty of the students decided not to remain with the company under the new terms and announced their resignation.
In their visit to Israel, EMC Chairman and President Joseph Tucci and RSA Security Division President Tom Heiser noted the importance of the Israeli center for excellence headed by Dr. Orna Berry, and the fraud detection center which has thwarted about a half a million online attacks thus far which are valued at some $7.5 billion.
The company said in a statement, "At the heart of the company's RSA FraudAction service is RSA's unique anti fraud command center (AFCC), which is located in Israel.
"The center which works around the clock employs 130 fraud analysts who shut down fraud sites, deploy security means and do extensive forensics work, all aiming to stop online perpetrators and prevent future attacks."
RSA President Heiser also said, "In the first half of 2011 alone the RSA FraudAction service saved our customers some $520 million that could have ended up in the hands of internet criminals."
Head of EMC's Israel activity, Michal Blumenstyk-Braverman, said in a press release: "Our services are becoming more and more valuable and indispensable to our customers in face of growing numbers of online fraud cases and criminals, who are becoming increasingly sophisticated and hard to detect."
Despite the company's record performance, however, it has decided to cut salaries.
Head of EMC's Israel center for excellence, Mor Noifeld, imparted that "the changes in salaries for night shifts and weekend shifts were done in line with the law and in concert with enhancements and benefits that the company granted the employees.
"It should be noted that the terms we offer beat most of what is available to students on the Israeli market, and even after the change – they are above the legal requirements."
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