Feeds

Union predicts retirement surge over IBM pension changes

Management gains for workers' pain

Intelligent flash storage arrays

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. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.