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“Hundreds of workers are joining the union determined to stand up to this unacceptable attack on their pensions.”
London (17 August 2009) – Unite, the largest union in the United Kingdom , is warning IBM to brace itself for a backlash from thousands of employees against the company's plans to close its defined benefit pension plan to future accrual and to alter the terms of its early retirement scheme.
The union calculates that typically people in their mid 50s could lose up to £200,000 ($363,000 Cnd) 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 organizing 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.
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