IBM urged to rethink its job-cut proposal

Unionists protest downsizing plan

Unionists around the world took actions Monday to press IBM Corp. executives to rethink a major downsizing planned for this year. But there have been no signs Big Blue is about to blink.

Just what might be accomplished by holding up signs, leafletting and phone calls to IBM's Armonk headquarters?

It helps the unions in Europe significantly, said Lee Conrad, organizer of the Alliance@IBM, also known as Local 1701 of the Communications Workers of America. Unlike in America, there are many IBM workers in Europe represented by unions or through "works councils," which are bodies that companies must consult with prior to layoffs.

"The works council in Belgium is sitting down with IBM," Conrad said. "IBM now realizes there's a lot of people sitting behind them (the workers)."

Fewer jobs may be lost as a result of coordinated action that stresses the human element and the alleged unfairness of the cuts, unionists figure.

"We're hoping if we put enough pressure on the company, they'll think twice about the number of cuts they actually need," Conrad said.

An IBM spokeswoman did not return a call seeking comment.

In a statement issued by about two dozen labor groups, mostly in Europe, the organizers said, "We believe the restructuring proposed by IBM senior management is the wrong direction for employees, the company and its customers."

Big Blue profits cited

"Let us not forget that IBM is a wealthy and successful company. Its first-quarter profit for 2005 was $1.4 billion, and $9 billion for the whole of 2004. It increased the dividend to its shareholders, recently bought back $5 billion in IBM stock and acquired 19 companies in 2004," they said.

The cuts hurt people, said Art Richter, a retired IBMer who lives in Kingston and is regional director for IBM Benefits Restoration.

"They lose their benefits and everything," Richter said. "I have a friend in his 40th year. They gave him a 30-day notice," and a six-month severance package.

Craig Wolf can be reached at cwolf@poughkeepsiejournal.com

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