"compliance with local labor law"
"HSPC management talked to the employees to help them better understand their existing compensation and benefits and to assure them that HGST and any potential acquirer would remain in compliance with local labor law."
I've seen this before. In that case, the local labor law (UK) just said what the minimum legal payout was, and after some changes, people got literally that; not what had been previously granted, etc. Basically a bum deal for the employees.
The funny thing is that in this case, some employees in China were also affected. One of them was on maternity leave, and so had a minimum of 2 years guaranteed employment, so she actually got paid more than the UK people who just gor 1 month notice and 1 week for each complete year of employment in the (new) company, that possibly didn't include their employment in the original company.