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IBM Workers Hail Court Ruling on Pensions
A federal court ruling July 31 was a major victory for Alliance@IBM members and other IBM workers whose pensions took hits when the company switched to a cash-balance pension plan.
Chief District Judge G. Patrick Murphy of the Southern District of Illinois upheld the workers' argument in Cooper vs. IBM that the company pension plan changes in 1995 and 1999 amounted to illegal age discrimination by reducing pension benefits for 140,000 older employees.
"The pension plans were changed to boost the bottom line and increase executives' bonuses, while hurting loyal employees," said Linda Guyer, president of Alliance @IBM/CWA Local 1701. "We are now finally seeing some justice for employees who have worked hard in their long careers at IBM."
The ruling Wednesday dealt only with liability. The judge has yet to decide on how the affected workers will be compensated. The company plans an immediate appeal.
Plaintiff Kathi Cooper, a 24-year IBM employee cheered the ruling, saying the company's cash-balance scheme was "unconscionable."
"This significant victory is proof of the power of employees working together for justice and fairness,' Cooper said. "This is a great day for IBM employees. I want to thank everyone that supported this case, our attorneys, IBM employees, friends of the case and the Alliance @IBM. It makes me proud to be an Alliance member."
Chief District Judge G. Patrick Murphy of the Southern District of Illinois upheld the workers' argument in Cooper vs. IBM that the company pension plan changes in 1995 and 1999 amounted to illegal age discrimination by reducing pension benefits for 140,000 older employees.
"The pension plans were changed to boost the bottom line and increase executives' bonuses, while hurting loyal employees," said Linda Guyer, president of Alliance @IBM/CWA Local 1701. "We are now finally seeing some justice for employees who have worked hard in their long careers at IBM."
The ruling Wednesday dealt only with liability. The judge has yet to decide on how the affected workers will be compensated. The company plans an immediate appeal.
Plaintiff Kathi Cooper, a 24-year IBM employee cheered the ruling, saying the company's cash-balance scheme was "unconscionable."
"This significant victory is proof of the power of employees working together for justice and fairness,' Cooper said. "This is a great day for IBM employees. I want to thank everyone that supported this case, our attorneys, IBM employees, friends of the case and the Alliance @IBM. It makes me proud to be an Alliance member."