Union predicts retirement surge over IBM pension changes
Management gains for workers' pain
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 $40m.
At Fujitsu, which is making similar moves, Unite is organising a strike ballot after 87 per cent of staff called for action over the firm's changes to pension arrangements. ®
re:Union Predicts Retirement Surge at IBM
Hummm... Sam P. to get 40-60 million ($) in retirement benefits!! If this is even half true IBM should be ashamed of itself. *NO ONE* is worth that much. I do not care if he was the President of the USA he should not be getting anything close to it. I am a IBM stockholder and I have voted consistently against the outrageous salaries of IBM executives.
They have consistently over the last 20 years screwed the company up so bad that I almost expect them to ask for TARP funds so they can cut people (and benefits) and increase executive salaries.
If they do I will out in the streets protesting loud and picket sign in my hand.
IBM loves it when a plan comes together
The article talks about people walking out as if IBM would be concerned by that? IBM will be delighted to see 1000 of its' more expensive employees leave to either contribute towards their required workforce reduction or be replaced by much lower paid people. The cynic in me would suggest it is exactly the outcome they would have hoped for.
Good will works both ways
Leaving is playing into their hands.
Staff should work to rule as many work way in excess of their set hours. That would really start to hit the bigger corporations, they may find they need to attract additional staff to cover this extra work.
Good will and faith is a two way thing.