Milano, 20^th of April 2009

 

To the attention of

IBM Executive Compensation and Management Resources Committee of the Board of Directors
Sidney Taurel, Alain J.P. Belda, William R. Brody

and “IBM Board of Directors”

Alain J. P. Belda, Cathleen Black, William R. Brody, Kenneth I. Chenault, Michael L. Eskew, Shirley Ann Jackson, Taizo Nishimuro, James W. Owens, Samuel J. Palmisano, Joan E. Spero, Sidney Taurel, Lorenzo H. Zambrano

 

 

SUBJECT: NATIONAL CAMPAIGN AGAINST IBM MANAGERS EXCESSIVE BONUSES

 

We’d like to inform you that we have started in Italy a national campaign against IBM manager’s excessive bonuses.

In the middle of the economical global crisis, and during 9600 job cuts in IBM US, the management of GTS department of IBM Italy reserved for themselves a large reward and in addition went on a free holiday to a famous and expensive resort.

Our cost estimate for this holiday is between $40000 and $150000.

This waste of money by IBM Italy management is not fair and is offensive in the opinion of IBM workers.

 

The Italian IBM workers were outraged at this and our union started an online protest in Facebook and Petitionline, collecting more than 250 signers in few weeks.

A national newspaper reported some days ago this national campaign and the Italian public opinion is still waiting an official reply from IBM Management.

 

Revenue and dividends are going only to the investors, and year after year more bonuses are going to IBM managers. This is having a negative affect on the morale of IBM employees.

Bonuses to corporate management are under scrutiny by President Barack Obama’s administration. Management bonuses are also under the control of Sam Palmisano, our CEO and Corporate Social Responsibility offices.

We will no longer accept these excessive benefits to IBM managers.

We ask IBM to reinvest money in the direction of IBM workers (main stakeholders of this company), and especially to the employees that have not received salary increases for 7 or 10 years. On top of this many education course are cut due to low funds.

 

We have forwarded to IBM Italy HR some comments, with these specific questions:

- How many first level managers are involved in the bonus holiday to

 Terme e Benessere/Grotta Giusti di Monsummano Terme, from the 15th to 18th of February 2009?

- Is this kind of initiative restricted to the GTS direction of R.Confente or is it spreading to other IBM locations, directions and LoBs?

- How much is the allocated budget to this managerial initiative, and how is IBM defining it in the financial reports (representative expenses?)

 

We ask those responsible for IBM Corporate finances, if this initiative of IBM Italy is in line with IBM Corporate strategy and directives, especially in relation to expenses revisions and reporting.

 

We will wait for 10 days a reply to this letter: if no answers or comment will be provided to IBM Italy workers, we will continue with the national campaign, involving the IBM Workers International Solidarity (IWIS) and the international press.

 

Regards           

                                                       FLMUniti-CUB            

                                                       National Executive Committee