Media reports say that some workers have been fired for going on strike at an IBM server plant in China which Lenovo hopes to acquire as part of its $2.3 billion deal with Big Blue. Lenovo is trying to steer clear of the mess, issuing a lengthy statement saying the strike is for IBM to resolve.
“The strike at the IBM server factory in Shenzhen is an internal matter for IBM,” the statement reads.
However, Lenovo also seeks to reassure the estimated 7,500 IBM workers around the world who would be affected by the deal and move to Lenovo.
“The talent we are acquiring is a great asset, and key to our long term success,” the statement reads. “Lenovo will rely on these employees to build the business after closing and looks forward to welcoming them to Lenovo in several months’ time.”
As first reported last week by Chinese media and people in the city located near Hong Kong who posted videos online, some 1,000 or more workers wearing light blue smocks reacted in anger at news about the IBM x86 server business sale to Lenovo and financial terms of the deal, such as severance, as it affected them.
Some 2,000 IBMers in RTP are expected to be transferred to Lenovo – if the deal receives government approval.
Over several days, international media including The New York Times and Wall Street Journal picked up the story.
WRALTechWire, utilizing a fluent Mandarin speaker as a translator, was among the first English sites to report the story.
After days of little public reaction from either IBM or Lenovo to the news, Lenovo posted the following statement on its website:
“Lenovo’s statement on the strike at the IBM server factory in Shenzhen”
“Lenovo is aware of the strike at the IBM server factory in Shenzhen, and the company’s position is as follows:
“Lenovo announced its acquisition of IBM’s x86 Server business (including the IBM x86 server factory in Shenzhen) in January, 2014. This deal is about fueling growth and building a sustainable, leading server business. With this acquisition, Lenovo would immediately have the number three x86 server business in the world. This deal is part of the foundation on which we will build a major new pillar of growth. We view this as a key part of our strategy and we are completely committed to the long term success of this important and profitable new business.
“This acquisition still requires the approval of relevant government and regulatory authorities. Lenovo and IBM are two independent companies. Any integration between Lenovo and IBM’s x86 server department will not be conducted until the deal is closed. The strike at the IBM server factory in Shenzhen is an internal matter for IBM.
“Approximately 7,500 IBM employees in more than 60 countries are expected to transfer to Lenovo at the close of the transaction. These include product development, manufacturing, sales and marketing, and staff employees in locations around the world. Part of the reason Lenovo is acquiring IBM’s x86 server business is to gain the tremendous talent and experience of its workforce, strong from top to bottom. Lenovo is buying IBM’s x86 business intact and Lenovo is similarly committed to following the IBM x86 server product roadmap.
“The talent we are acquiring is a great asset, and key to our long term success. Lenovo will rely on these employees to build the business after closing and looks forward to welcoming them to Lenovo in several months’ time. To ensure a smooth transition Lenovo is committed to provide opportunity for all employees from IBM’s x86 server department who transfer to Lenovo, without any reduction of their wages and benefits. We value their contributions and our goal is to provide them with continued opportunity pending approval of this acquisition.”
