Sun Microsystems staff on leave

SUN Microsystems will force its staff to take annual leave in July as an alternative measure to making personnel redundant.

The decision will affect half of Sun’s 800 workforce Australia wide and include staff in its Adelaide Street office in Perth. The move comes despite Sun’s impressive Australian performance compared with its global operations.

Sun Microsystems Australia revenue grew 2 per cent in the third quarter while worldwide the company’s earnings dropped 43 per cent.

The unusual tactic follows the decision by Sun Microsystems in the US to force all employees to take leave in the first week of July.

Sun managing director for Australia Jim Hassell said while the decision would reduce the company’s accrued leave liability, he could not necessarily rule out staff cuts in the future.

“It’s impossible to make any guarantees,” Mr Hassell said.

It is understood staff with no accrued leave will be working through the period. The company chose July because it coincided with the traditionally slow time in the US, when many employees take summer holidays.

Sun Microsystems’ Perth office could not be reached for comment.