Unite challenges rationale for IBM pension scheme closure
announcement
8th July 2009
Unite, the largest union in the UK, has today (Wednesday)
accused global IT company IBM of using the cover of the recession
to cut the pensions of its UK workforce. The company has announced
that it is to close the final salary pension scheme for future
accrual to existing members.
Unite believes that IBM can well afford to keep the existing
scheme open but is seeking to cut costs in order to make more money
available for dividends, to buy back IBM shares and for
acquisitions.
IBM's announcement follows similar announcements by other IT
companies including Fujitsu in May, which is also being challenged
by Unite. The union is in the process of organising a consultative
ballot on industrial action among its membership in Fujitsu.
Peter Skyte, Unite national officer, said: “IBM is a highly
profitable company with substantial revenues and cash reserves.
“The company, like others in the IT sector, is using the cover
of the financial crisis to erode future pension benefits for long
serving and highly skilled people.
“This is a kick in the teeth to people in IBM who helped to
rebuild the company when it was in difficulty. This announcement
demonstrates that company loyalty is too often regarded as a one
way street in the corporate world of 2009.”
ENDS
Contact: Mark Di-Toro on 07918 640 579 or Peter Skyte on
07768931302
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