IBM Workers Launch Petition To Stop Pay Cuts - InformationWeek
IoT
IoT
Software // Enterprise Applications
News
1/28/2008
12:22 PM
50%
50%

IBM Workers Launch Petition To Stop Pay Cuts

Employee group seeks to prevent a 15% salary reduction for IT specialists and support workers.

A group representing IBM employees has launched a petition drive that aims to get the computer maker to reverse plans to impose a 15% pay cut on more than 7,500 employees.

The petition, organized by Alliance At IBM and addressed to "IBM management," asks that "the salary of all employees affected by the announced pay cut ... be immediately restored."

The petition drive comes in the wake of reports that IBM plans to cut by 15% the salaries of IT specialists and support workers, starting in February.

According to an internal IBM document viewed by InformationWeek, the plan was drawn up in response to several lawsuits filed against the company alleging that it failed to pay overtime to groups of workers who were legally entitled to the extra pay.

"To avoid protracted litigation in an area of law widely seen as ambiguous, IBM chose to settle the case -- and to conduct a detailed review of the jobs in question," the document states.

As part of a salary-restructuring plan, IBM has agreed to pay those workers time-and-a-half overtime if they work more than 40 hours per week -- but will cut their base pay by 15% to make up the difference.

IBM has said it won't save any money as a result of the plan because the pay cuts will be offset by increased overtime costs.

But some IBM workers are crying foul. "We have had record profits and seen our benefits and base pay erode at record levels," wrote one poster on a message board operated by Alliance At IBM.

Despite such complaints, the petition appears to have garnered only tepid support so far. The online document had received just 500 electronic signatures as of Monday morning.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
[Interop ITX 2017] State Of DevOps Report
[Interop ITX 2017] State Of DevOps Report
The DevOps movement brings application development and infrastructure operations together to increase efficiency and deploy applications more quickly. But embracing DevOps means making significant cultural, organizational, and technological changes. This research report will examine how and why IT organizations are adopting DevOps methodologies, the effects on their staff and processes, and the tools they are utilizing for the best results.
Register for InformationWeek Newsletters
White Papers
Current Issue
Digital Transformation Myths & Truths
Transformation is on every IT organization's to-do list, but effectively transforming IT means a major shift in technology as well as business models and culture. In this IT Trend Report, we examine some of the misconceptions of digital transformation and look at steps you can take to succeed technically and culturally.
Video
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll