Feeds

IBM UK facing 'backlash' over pension snuffing

'Hundreds' Unite

Next gen security for virtualised datacentres

Unite - Britain's largest union - has warned IBM UK of a coming "backlash" from thousands of employees over its decision pull a prime pension plan out from under 28 per cent of its workforce.

In early July, the company shelved its Defined Benefit or "final salary" pension scheme, which would have guaranteed retired employees a predefined portion of their final salary.

"IBM is facing a backlash against its pensions proposals," reads a statement from Peter Skyte, Unite national officer for IT and communications. "Hundreds of workers are joining the union determined to stand up to this unacceptable attack on their pensions. These highly skilled and experienced staff were key to the company’s survival and they view the company's proposals as a kick in the teeth.

"IBM is a highly profitable company with substantial revenues and cash reserves. But it is using the recession as a cloak to close its pension schemes to existing members and further line the pockets of its shareholders and senior executives at the expense of its loyal workforce."

IBM retains its Defined Contribution or "money purchase" plan, where employees contribute portions of their salaries to a pension fund that puts the risk on them - not IBM. But the final salary plan will be closed to further accrual in April 2010, and until then, salary increases will no longer count towards the plan. Once they end their memberships in the final salary plan, employees have the option of joining the money purchase plan.

About 28 per cent of the company is still on the final salary plan.

Unite estimates that IBM employees in their mid-50s could lose up to £200,000 thanks to the change in pension schemes and that it will push between 700 and 1000 employees into early retirement before April 2010.

Fujitsu recently made a similar announcement and it's now facing an industrial-action ballot by Unite.

An IBM UK spokesman declined to discuss the matter. "IBM is in a process of consultation as required by law during which time employees will have the opportunity to ask questions and send feedback on the proposals," he said. "It would be inappropriate to discuss further during this consultation period." ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.