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Alliance@IBM: IBM Pension Change 'Yet Another Cut in Employee Benefits'
For More Information:
Lee Conrad, in Endicott, N.Y., 607-658-9285
Endicottalliance@stny.rr.com
www.allianceibm.org
Endicott, N.Y. -- At the end of the day on Jan. 5, IBM announced to the media, before notifying employees, that the IBM pension plan of $48 billion will be "frozen" in 2008 and the employee 401(k) plan enhanced.
"This is a further takeaway of the employees' retirement security and part of a national trend to drive workers' standard of living down while enhancing corporate profits and executive bank accounts," stated Lee Conrad, National Coordinator of the Alliance@IBM, CWA Local 1701, the IBM union organizing campaign.
The termination of the pension plan is expected to save the company $3 billion by 2010 according to IBM. No statement was made on how this change affects executives' Supplemental Executive Retirement Plan (SERP).
Linda Guyer, an IBM Software Group employee and president of the Alliance@IBM said, "This is just one more top down edict from corporate headquarters that leaves employees with no say. We have seen this far too often. If a union contract was in place, changes as significant as this to employee retirement would have to be negotiated. It's time for employees to fight back."
Earl Mongeon, an IBM Burlington employee and vice president of the Alliance, stated that for many long-time employees, the pension freeze is a reversal of an implied promise. "The company just pulled the rug out from us. The $48 billion in the plan is ours, because we built this company."
The Alliance@IBM is deeply concerned that, considering the volatility of the stock market and recent downturns that have wiped out retirement for many, the move to retirement based on 401(k) savings could be disastrous for many employees, especially those not savvy in investing.
"IBM, like so many other companies, is either eliminating or not offering the stability of a pension plan, or even basic benefits. The signs are already there that the next generation of workers will be in worse shape financially than this one. It is obvious that corporations of today do not value the work employees do," stated Conrad.
Lee Conrad, in Endicott, N.Y., 607-658-9285
Endicottalliance@stny.rr.com
www.allianceibm.org
Endicott, N.Y. -- At the end of the day on Jan. 5, IBM announced to the media, before notifying employees, that the IBM pension plan of $48 billion will be "frozen" in 2008 and the employee 401(k) plan enhanced.
"This is a further takeaway of the employees' retirement security and part of a national trend to drive workers' standard of living down while enhancing corporate profits and executive bank accounts," stated Lee Conrad, National Coordinator of the Alliance@IBM, CWA Local 1701, the IBM union organizing campaign.
The termination of the pension plan is expected to save the company $3 billion by 2010 according to IBM. No statement was made on how this change affects executives' Supplemental Executive Retirement Plan (SERP).
Linda Guyer, an IBM Software Group employee and president of the Alliance@IBM said, "This is just one more top down edict from corporate headquarters that leaves employees with no say. We have seen this far too often. If a union contract was in place, changes as significant as this to employee retirement would have to be negotiated. It's time for employees to fight back."
Earl Mongeon, an IBM Burlington employee and vice president of the Alliance, stated that for many long-time employees, the pension freeze is a reversal of an implied promise. "The company just pulled the rug out from us. The $48 billion in the plan is ours, because we built this company."
The Alliance@IBM is deeply concerned that, considering the volatility of the stock market and recent downturns that have wiped out retirement for many, the move to retirement based on 401(k) savings could be disastrous for many employees, especially those not savvy in investing.
"IBM, like so many other companies, is either eliminating or not offering the stability of a pension plan, or even basic benefits. The signs are already there that the next generation of workers will be in worse shape financially than this one. It is obvious that corporations of today do not value the work employees do," stated Conrad.