IBM Offers Retirement With Job Guarantee Through 2013

dcblogs writes "IBM is offering employees who are nearing retirement — and may be worried about a layoff — a one-time voluntary program that would ensure their employment through Dec. 31, 2013. The program, described in a letter addressed to IBM managers, 'offers participants 70% of their pay for working 60% of their schedule.' Participating employees would receive 'the same benefits they do today, most at a full-time level, including health benefits and 401(k) Plus Plan automatic company contributions.' In 2006, IBM employed about 127,000 in U.S. The Alliance@IBM, a CWA local, now estimates the U.S. workforce at around 95,000. How far IBM will go in cutting is up for debate, including one radical estimate."

Comments

crossover point

[vlm]

If IBM were not closing in the US and moving completely to China and India as fast as they can, just like GE and a zillion other companies, lets figure out the crossover point:
Assume one months pay per year of employment.
This is guarantee of 70% of 18 months or about one years pay. Along with 18 months of health insurance, I'd assume.
So if you have more than 12 years in, you should risk it, you'll probably come out ahead. Less than 12 years in, you'd be better off taking the offer.

Most likely they're going to downsize every american citizen in their corporation, so you do appear to be better off taking the offer because its not a random distribution.

I'm also curious in salaried positions if you're expected to put in 50 hours per week for a "40 hour schedule", then what does 60% of schedule even mean, like you no longer work Monday and Friday at all, or you're still expected to put in 50 hours per week, except now on a imaginary "24 hour schedule"?

And a message for the last F500 employee in america, please remember to shut off the lights on your way out of the office...

Re:crossover point

[Microlith]

Eventually it will be a global market

It's not a global market until I can move to the areas where the cost of living is cheaper and look for work on a whim. I can't, however.

It's a global market, but only for corporations.

Re:old people don't know anything about computers

[ZorinLynx]

Heh, I'm sure you're being facetious.. but in the tiny event that you're not...

A while back we had some IBM big iron on campus, and our regular IBM tech was a guy in his (estimated) high 50s. Never have I seen someone who so *intricately* knows their shit as this man. He casually explained to me, while working, exactly what the capacitor cards do in the p690, why the system is designed the way it is, and so on. His troubleshooting ability was amazing, too.

This is expected when you have three to four DECADES of experience. A newly minted college grad may be able to sling C# code like there's no tomorrow but he won't have this experience.

I think IBM is making a mistake by letting these people go, and I'm betting they'll suffer down the line for it.

Re:They're acting like they're in trouble!

[gstoddart]

Cutting jobs that aren't needed is one way to continue doing well by business standards.

Provided, of course, that these are actually jobs that aren't needed. Corporations sometimes suck at that part.

Several years ago, the entire project team I was on was notified we were being let go. As we got closer to our final days, Sales had their knickers in a twist because they had a huge business deal on the line for the product we built.

Trying to explain to a panicked salesman that fixing that bug or adding that feature wasn't going to happen because your last day is the end of the week is always fun. It boiled down to "wow, how unfortunate for you to be trying to close a multi-million dollar sale when the company has decided they don't need any of the people involved". Of course, the salesman was frantic about the sale and his commission -- couldn't quite understand why that was no longer our problem.

I've seen several instances where the bean counters decided to get rid of certain people without actually knowing what their role was.

Re:They're acting like they're in trouble!

[vlm]

Difference between education and training:

Educated guy has stuff to think about and do; hobbies; lasts a lifetime.

Trained guy has nothing to do but go to work, nothing to do at home but watch TV, maybe drink.

I've seen both types retire... uneducated retirement isn't pretty and they don't live long, educated guys have a freaking blast after retirement.