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16th April 2004

Brendon Riley
General Manager
IBM Global Services, Australia & New Zealand


Dear Brendon,

RE: Job losses due to transfer of work overseas

We are a group of IBM staff who are concerned about the potential loss of our jobs as a result of decisions by IBM to transfer work to overseas locations, including the recent decision to send roles on the Telstra account to IBM India.

Whilst we understand the commercial pressures that can lead to these decisions being made, we believe the process can be managed in a manner that gives due consideration to staff that have dedicated so much effort to making IBM the success that it is.

Some time ago the Community and Public Sector Union (CPSU) raised a proposal that IBM manage any job losses associated with the IBM India role transfer by a company wide call for voluntary redundancies, allowing job swaps and staff retraining. If IBM were to agree, this would allow people who may have mortgages and young families - highly motivated staff who desperately need the work - to swap roles with those who may want to leave the company.

We believe this is a reasonable proposal and is in line with the company's policy of investment in people and commitment to training.

In light of the extremely upbeat presentation and excellent profit announcement by you at the kick-off meeting in February, we also believe that this request is easily within the means of a large, profitable company like IBM.

We therefore request that you consider this proposal and furnish your reply to our CPSU representative at your earliest convenience.

Regards,

IBM Global Services Staff (listed at Attachment A)