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IBM workers 'disappointed' with redundancy offer

Thursday, 17 June 2010

WORKERS facing redundancy in IBM’s facility in Dublin 15 say they are “stunned and disappointed” with the severance package on offer from the major computer firm. Five weeks’ severance pay is reportedly on offer to those who want to volunteer for redundancy under a process that could see up to 200 staff leave the company. Talks in relation to redundancy packages got underway two months ago just as IBM finalised the transfer of its high-end server manufacturing from its Mulhuddart campus to Singapore. One worker who contacted Northside People said he and his colleagues are disgusted by what he described as the “derisory” redundancy package on offer. “While we are not naive and realise that this is just business and it is common practice for companies to move to other countries, we were absolutely stunned at the derisory offer of five weeks’ severance pay being offered by what is the second richest corporation on the planet,” he stated. “We do not think our severance packages are proportionate to the revenue we have earned for the company, nor do they reflect the loyalty that has been shown by the staff here. “I have worked with IBM for over a decade. I have given up time with my family at Christmas because of gruelling end-of-year schedules and I have personally generated millions of dollars of revenue for the company.” He added: “IBM stated that it will be paying the staff five weeks’ severance pay for every year of service, but in reality IBM will be paying three weeks and the Government will be paying two.” Local TD Leo Varadkar (FG) called for more to be done to avert redundancies at IBM’s Mulhuddart facility. “I have met with and spoken to a number of affected staff members in recent weeks,” he said. “They are all very unhappy at the five weeks per year of service redundancy package being offer by IBM. “IBM is a highly profitable company which recorded profits of over e20 (dollars) billion in 2009. “It has received millions in grants from the Irish Government and benefits from our 12.5 per cent corporation profit tax rate.” Deputy Varadkar has been in touch with the IBM and the IDA on the matter. IBM announced in 2009 its plans to move its high-end server manufacturing to provide “a more strategic location for manufacturing operations”, placing the company closer to its growth markets and suppliers. “We have entered into a process of consultation with employees involved,” a spokesperson told Northside People. “The IBM Technology Campus in Damastown, Mulhuddart, has evolved as a strong software and services location. Supported by IDA investment in 2009, 100 new jobs in software development were added. “While in March 2010, 200 additional new jobs were announced with IBM's Smarter Cities Technology Centre.” A spokesperson for the company said they were not in position to respond to questions about the redundancy package, as talks with employees are ongoing.