IBM faces pensions backlash, warns Unite
17th August 2009
Unite, the UK’s largest union, is warning IBM to brace itself
for a backlash from thousands of employees against the company's
plans to close its final salary pension schemes to future accrual
and to alter the terms of its early retirement scheme.
While Unite is in the midst of an industrial action consultative
ballot at Fujitsu, the fight back at IBM has been gathering
pace as hundreds of angry workers have been have been joining the
union.
The union calculates that typically people in their mid 50s
could lose up to £200,000 as a result of these changes from the
retirement pension they had expected to draw before the company’s
announcement in July.
The proposed changes will have a devastating effect on future
pensions in retirement and according to the union potentially lead
to between 700 and 1,000 people opting for early retirement prior
to April 2010 when the new early retirement provisions apply.
This announcement follows similar statements by other IT
companies including by Fujitsu in May, which is also being
challenged by Unite.
Unite is organising a series of meetings throughout the UK and
the first meetings have been packed to overflowing.
Peter Skyte, Unite national officer for IT and communications,
said: “IBM is facing a backlash against its pensions' proposals.
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 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 has around 18,000 employees throughout the UK. The company
has several defined benefit pension plans which it is seeking to
close and has commenced a 60 day consultation period with a Pension
Consultative Committee of employee representatives including Unite
members.
IBM has major sites in London, Portsmouth, Hursley (Winchester),
Warwick, Greenock, the North West and elsewhere.
ENDS
For further information please call Peter Skyte on 07768 931302
or Brian Gallagher on 07957 995947 or Ashraf Choudhury in the Unite
Press Office on 020 7420 8914 or 07980 224761.
Dates of forthcoming meetings include Greenock, Scotland on 17th
August and Manchester on 20th August.
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