Updated Mar. 7, 2013 at 8:13 a.m.

Premium Lock Two senators blast IBM for changes in employee 401(K) plans

Published: 2013-03-07 07:55:00
Updated: 2013-03-07 08:13:32

Virginia Rometty Virginia Rometty. (IBM photo)

Big Blue employees angry about changes in their 401K plans have picked up support from two heavyweight allies in seeking the reversal of those moves: Two U.S. Senators....

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see what happens when you let a female take over?
IBM'ers are cry babies, always looking for ways to abuse the system. No sympathy offered, now get back to work!
What many people don't seem to realize (or maybe just admit) is that this is just one step in IBM getting more aggressive at cutting the US workforce.

For employees that do stay, there is not much of a cost difference. The savings comes into effect when employees leave (either voluntarily or involuntarily). Since the match has not been paid, it reduces the costs to let someone go.

And, with creative accounting, you could probably even negate the costs of terminating someone since the 401k match is cash that is now back in IBM's pockets. In other words, IBM budgets for the 401k match on a per-pay-period basis, but then realizes that as savings against severance costs. Thus making it easier to do lay offs (oh, I'm sorry, Resource Actions)as it doesn't affect quarterly results as much. Note, I don't know accounting laws, so don't know if this is even a legal approach.
Well, look at it like this. IBM announced Tuesday that they are moving two plants to Mexico, laying off around 800 people. Those folks, since they did not stay for the entire year, won't get IBM Contributions into their retirement accounts.

So yes, IBM is definitely using questionable tactics on American workers.
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