Feeds

Union predicts retirement surge over IBM pension changes

Management gains for workers' pain

Designing a Defense for Mobile Applications

Union Unite is predicting staff at IBM will walk out, opting for early retirement, rather than accept reduced pensions from the firm.

IBM, along with dozens of other firms, is stopping its final salary pension scheme in order to cut costs.

But Unite said today it expects between 700 and 1,000 people will opt for early retirement before the new terms come into force in April 2011. The union reckons that staff in their mid-50s could lose up to £200,000 from the changes proposed.

Peter Skyte, Unite national officer for IT and comms, said: “The latest IBM proposals, whilst modifying some of the detail and mitigating some of the impact in the short term, do little to alter the substance of the company’s original proposal and still propose the closure of the defined benefit pension scheme and replacement with a vastly inferior money purchase scheme."

Big Blue and its workers have been negotiating since July, on the pension issue and has pushed the date back for the end of accruals to April 2011 from April 2010.

The union noted that Sam Palmisano, IBM's chief executive, saw his pension pot jump $20m this year to $40m.

At Fujitsu, which is making similar moves, Unite is organising a strike ballot after 87 per cent of staff called for action over the firm's changes to pension arrangements. ®

The smart choice: opportunity from uncertainty

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.