IBM cuts pay for workers put on hourly rates
IBM IS CUTTING the wages of 7,600 technical support staff and has admitted many won't make up the difference in overtime.
The move is being marked as "retaliation" by the firm after workers won a legal dispute and it was forced to hand over $65 million in unpaid overtime in 2006.
Lee Conrad of the Communications Workers of America told the Associated Press: "IBM got caught breaking the law and now they're punishing the workers." IBM denies this.
The firm is putting technicians on an hourl-pay basis and said workers may suffer 15 per cent pay cuts but that they can make up the difference in overtime. However, AP reported that an internal IBM memo has admitted that there won't be enough overtime for nearly one third of workers.
One employee told the AP "Anybody who's been in IBM knows that when they look to cut costs, that's where they're going to cut it," who spoke to the AP on condition of anonymity because she fears reprisals from the company.
Last week the IBM reported 2007 profits of $10.4 billion. µ
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The IBM techs were rightfully complaining about not being paid overtime, IBM gets fined for this and then retaliates on it's workforce by forcing them to work overtime so they can earn the same income they were making without overtime? IBM, same morals as when they sold computers to the Nazis, a real bunch of A-Holes.

Why doesn't IBM just punch them all in the mouth while they are at it?



Maybe Larry Page and Sergey Brin should ask Mr Palmisano if he has seen their money....
Although overtime is a way to earn more money, it shouldn't be seen as compensation for a pay cut. 

Without wishing to state the fecking obvious, yes, you *may* be able to recoup the difference, but only by working more!
Over $10 billion in profit and complain about paying a little deserved overtime to people that actually drives this economy. Thanks for the recession coporations. But hey, thats the american way. The person with the most money is "right" and will get away with anything as long its for profit. The less fortunate gets stepped on. Rich gets filthy rich and the poor gets poorer and have to clean up the mess. This kind of stuff makes me proud to be an american.
What a cheap company! You would think that a TECH COMPANY would pay its TECH STAFF well enough and treat them well enough! Its hard to be a tech these days and companies wonder why they cant get good staff, we dont run on peanuts thats why!
IBM will save money...no matter how much it costs !!
I am one of those affected. I work as an information security analyst (MS, BS, BBA, and CISSP to my credit). IBM currently charges the customer $110/hr for my time and pays me $69K (~$35/hr) a year with no 401K (bc I've been there less than a year) and benefits that I could certainly do without. I work at a client's sight where the client pays all the overhead cost. IBM's cut is over 70% despite the fact that their administrative overhead for me is minimal. Now they are trying to reduce my base salary 15%. I am already working 43hr weeks on average which is the max they will let me, and this year I stand to lose 6% in pay. I have a coworker who can only work at max 40 hours and he stands to lose $12,000 each year. I personally had offers on the table from Lockheed Martin, an overtime paying position (along with several other firms) and I went with IBM because they sold me they were a good company and their offer was slightly better. In hindsight this was a terrible move. I will now be making $5,350 less working for them as I would be working for Lockheed and Lockheed was also offering a signing bonus and a Secret Clearance. I have an upcoming wedding and I am I have a single income family. I was not a part of any class action suit regarding overtime. I signed a contract and now IBM is renigging.

There is an IBM Employees Union, called Alliance at IBM at www.allianceibm.org. A petition has been started that is gathering signatures that will support an action case against IBM for instituting these pay cuts. The link is below: 
http://www.petitiononline.com/mod_perl/signed.cgi?ibm1701&1

For those capped at 40hr (which AP Reporter Brian Bergstein reports is true of 30% of the affected employees), this will be a 15% pay cut likely bringing your pay down about $10K or so. For those capped around the 43 hour average workweek most IBM consultants like myself work, this will be about a 6% pay cut when you factor in less bonus money and 401K and the fact that for the 5.4 weeks you log vacation/holiday leave, you will be making 85% of your previous salary.

For those working in excess of 46 hours (which is approximately the breakeven point for total compensation to be equal), your chance for overtime will likely diminish and so will your overall pay as more managers look after their own financials rather than their employees compensation. 

The bottom line is that we signed a contract, but apparently there is nothing stopping corporate from breaching this contract since our union does not have the support that it needs. Please add your support even if you are not one of the reported 7,600 IT Specialists (bands 6-8) that are affected. Also, please pass this on to your friends and fellow colleagues.
When are companies going to realize that pissing off your employees is never a good thing?

2008 might be a bad year for IBM.
I am a 37 year veteran of IBM and I have been shocked by how they have hit employees with one thing after the other recently. In addition to this pay cut, starting Jan 1st, we no longer accrue pension benefits. IBM has moved to a 401K type pension plan now. For people thinking about working for IBM, I would think twice and find an employer who cares about their employees as much as they do profits.