IBM Australia faces strike action

IBM's Australian operation is facing the possibility of strike action amongst its workforce after a secret ballot opened yesterday between employees in a Baulkham Hills facility.

A section of under 100 employees who work in the "Flightdeck" at Baulkam Hills want a collective agreement granting them better pay and work conditions. So-called "Flightdeck" due to the rows of computers and big screens, which looks like a flight deck.

According to statements published by the Australian Services Union (ASU), after IBM Flightdeck employee meetings in June, the 46 Flightdeck employees in the union voted to apply for a protected action ballot with the Australian Industrial Relations Commission (AIRC) which would decide whether to take legal industrial action.

The application was heard on 1 July by the AIRC, which also took into account IBM's objection that the ASU was ineligible to represent the interests of workers at the Flightdeck.

Last week the AIRC issued orders for a protected action ballot, which opened yesterday and will close on 29 August.

The aim of the negotiations was to achieve rights for all Flightdeck employees including regular pay rises, pay equity, travel allowance, fair redundancy and retrenchment provisions, paid shift handover periods, fair access to leave entitlements and time off in lieu, shift penalties and the option to work from home.

The decision to have a protected ballot was not met without attempts at bargaining with the company for an agreement, according to the ASU, which said it notified IBM through the AIRC of the commencement of a bargaining period.

According to the ASU, although IBM organised round-table meetings to listen to the concerns of Flightdeck workers, they weren't ready to address the employees' concerns, leading to the decision to apply for the ballot.

The union commenced a second bargaining period to pursue a non-union agreement while waiting for the AIRC's decision on the ballot. IBM agreed to meet yesterday at 10:30am to discuss it.

However, the ASU said it had obtained legal advice that said it was necessary to either choose a non-union or a union agreement, and since it perceived that IBM had only agreed to discuss the non-union agreement to avoid fines for not doing so, it decided to go ahead with the ballot action to obtain a union agreement, and told IBM that it could meet to discuss that agreement yesterday at the time already elected.

IBM refused to meet to discuss the union agreement, according to the ASU, saying the representatives were unavailable.

An IBM spokesperson responded to queries with this statement: "We are engaged in ongoing discussions with employees at the site in question to address any issues directly. IBM is widely recognised as an employer of choice, offering competitive remuneration and a very broad range of benefits for employees."

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Talkback 14 comments

    BIG Blues for IBM vs Flight Deck Staff Anonymous -- 15/08/08

    For many years IBM was portrayed as an employer of choice ,this is now no more. Beyond the rhetoric a united group of employees have stood up to IBM & it's bad treatment of staff & are seeking with the full support of the IRC a legal & fair enterprise agreement . IBM clearly isn't a choice employeer of choice when it's staff have to resort to Union & protected action to simply get an agreement. The IRC decision showed that IBM was wrong in it's view that staff were not part of maintaining computers !. IBM has been busy attempting to source Scab IT workers with the promise of a $4000 bonus to be strike breakers. This is a continuation of a sad legacy that current management within the department will leave in IBM Australia's history. They have been the catalyst for a new movement within IBM to stand for the basic & legal rights of workers to protect their basic entitlements. BIG Blue should listen to it's workers & not the YES managers that have masked from the executive the sad truth of low morale & poor conditions for it's staff. Major Australian Infrastructure is run from this department including Major Government Health systems, Airlines & Financial institutions , Australia should be worried what IBM has done to it's IT industry & staff , the buck will stop some where & it won't be with the average workers. IBM has become a pale blue of it's former self.

    IBM At Baulkham Hills Anonymous -- 15/08/08

    We are one of those company's whose data is hosted at Baulkham Hills. Given the level of service we get from IBM this latest development doesn't surprise me one bit!

    I just wonder what sort of impact this is going to have on customers like us who host critical equipment there!

    IBM Service at Baulkham Hills Anonymous -- 16/08/08 (in reply to #320109887)

    Yes I agree, with employees like that at IBM it's no wonder the service is bad. They give the rest of us who work for IBM a bad name. We don't need unions and we don't have unions. I wish they'd just leave and work somewhere else, where they will find it no better, and probably much worse, than the company the majority of IBMers love to work for. Pay should be determined by IBM, not by the unions.

    IBM Services at Baulkham Hills Anonymous -- 17/08/08 (in reply to #320109889)

    I have just read your well-informed reply. I have read the same article, from what I can glean the main grievances appear to be conditions, not pay. Without any grasp or understanding of the situation, you automatically side with IBM management. From what I can determine your understanding of the history of the union movement, the way companies treated workers before unions, enterprise bargaining, industrial relations, and economics is lacking. You sound like a minor-functionary at IBM with illusions of grandeur. If I can speculate as to your age, it would probably be fairly young. It sounds like you have never lived through a period of periods of rampant inflation, recession, depression, mass redundancies, unemployment, or stagflation.
    I am sure that if you show your comment to your management your rise to mediocrity would be assured!

    Not a surprise Anonymous -- 17/08/08 (in reply to #320109889)

    You might be surprised to know the declining service to clients is one of the core frustrations leading up to the unionisation. There are highly skilled people on that Flightdeck, some with 20+ yrs experience, that take great pride in their work and they certainly appreciate how the recent decline in standards reflects poorly on them as much as it does on IBM. You would not believe the level of frustration at the current policies and strategies that are making it increasingly difficult to provide the clients with the level of service they pay for and deserve. Offshoring to poor quality environments whose low standard of service tars local staff with the same brush, dumbing down of local roles, ever shrinking resources to perform ever increasing workloads and on it goes. The pay issues are more about internal equity amongst flightdeck employees not simply getting more money. It'd be ill advised to reduce it to that. Yes it's obvious many other 9 -5 depts in IBM outside Strategic Outsourcing have it relatively easy and indeed years ago that same 'no need for bloody unions here' attitude was prevalent on the Flighdeck. However its hard to swallow the 'IBM is a great place to work' line when there's no funding to replace obsolete and unreliable equipment, a skilled and competent employee has no pay increase in several years and redundancy entitlements have been completely removed while IBM profits continue to rise and Sam gets his $25,000,000. I understand how easy it is to spout off about union stereotypes but I suggest you acquire a more in depth knowledge of the situation before passing judgement so quickly.

    LULWOT? Anonymous -- 18/08/08 (in reply to #320109939)

    20+ yrs in IT and doesnt have a role that can make a difference within the SPL umbrella (Ella ella eh eh eh)...

    Protip: Coke habit does not bode well on your IDP.

    Re you get paid enough. Anonymous -- 01/09/08 (in reply to #320109889)

    Hi I appreciate your comment but pay is not just the issue. I worked for IBM for over 14 years and yes IBM prides itself that it is has the best conditions but how does it distribute these. I will tell you that I got treated very badly at IBM, in that time I worked very hard and was committed to the company. But I didn't get those great benefits they pride themselves over. If I had the union support when I was there I am sure things would have been different. I am proud that there is a small team of people who are standing up to IBM to get their proper benefits and rights. I left IBM a period ago and found a great job where I have more rights and benefits than IBM, I get regular pay rises and most importantly respect for a good job done and I am able to join the union without being harassed. IBM was a great company to work for but its a pity employees have lost sight of the true IBM.

    IBM Australia vs Staff Angela -- 18/08/08

    I worked at IBM for 8 years having left last year, they are no longer in my view the employer of choice nor are they a fair employer, as a female they often state they have the best facilities for female employees this is not true anymore.

    They pay well under market rate within the IT industry but assume people will want to work there for the prestige of working at IBM. I left as I could get significantly better pay and working conditions elsewhere.

    The employees at IBM do attempt to provide high quality service to their clients this I know but this is hard with the working conditions and restrictions they have.

    Good for you! Anonymous -- 18/08/08

    Good on this group - I worked for an outsourcer for any years - and I never will again. Customers are a very poor third place in the prioirity list for these organisations - and the people that work for them are even lower in the list.

    I would expect to see this at more outsourcing organisations. Any time an employer says 'Employer of Choice" - I smell a stinky rat...

    Employers of Choice??? M@TT -- 19/08/08

    I have been in "IT" for over 30 years.

    Yes, once there were employers that you would chew your arm off to work for - IBM, HP, Compaq, CSC etc.

    These employers trained you, treated you with repect, listened to your observations and advice and generally did a good job at maintaing employee conditions.

    Today - its about shareholders, not employees. Sales teams sell deals that the delivery teams can't deliver for the price - so companies hire less skilled staff to deliver and put them under pressure to "self educate"

    Once upon a time the "flight deck" team was called "operations". A bunch of tape jockeys and batch jockeys.

    Today, they need to be level 1 & 2 diagnosticians for networks, servers, mainframes, backup, security and in many circumstances manage the facilities as well.

    They should be a highly valued and highly trained set of staff. Sadly - most organisations view them as just "ops staff"

    I have built and run data centres (up to 4000sqm) over the last 5 years - so I know what I am talking about.

    IMHO there is no organisation that is an employer of choice in the IT space anymore.

    - Anonymous -- 19/08/08 (in reply to #320110042)

    Actually, internally they are known "ops" still. Nobody calls them the flightdeck.

    Other than that I don't necessarily disagree with anything in your comment.

    Valid points Anonymous -- 02/09/08 (in reply to #320110042)

    IBM is all about sales. Clients are sold unrealistic contracts which have no chance of being delivered on time or within budget.

    As a result, under-skilled graduates are hired and thrown in the deep end, forced to self-educated on the job and forced to take up more responsibilities and duties than their title or pay would suggest. On some projects working weekends and late nights is the norm, not the exception, all without overtime pay or any remuneration bonuses.

    Most employees are highly dedicated to their work and strive to do a good job and IBM usually recognizes this with small incentives (bread-crumbs), but this is rarely reflected in pay rises come review cycles.

    Additionally, the promotion procedure is extremely complex and based on many factors with no way of side-stepping around it. That is, a top-performer doing a fantastic job with skills & responsibility way beyond his or her current level and recognition from project management may not be eligible for promotion for several years due to the way the system is structured, and hence will have to bare with the abysmal standard annual increases. This is highly demoralizing and leads to burnout, loss of motivation, performance degradation and eventually change of employment.

    As for the benefits and perks, there are some, mostly in the flexibility of travel & relocation (fairly generous with allowances). This may favor some, but is of no value to others.

    End of the day, base pay rate is a critical factor for any employee. Attempting to compromise here will cause an unfavorable chain-reaction for IBM.

    Big Blue has lost its sheen Anonymous -- 21/08/08

    IBM has turned into a company filled with "yes" managers who are unable to actually deal with situations like morale, pay or conditions. As someone who was an IBM employee, I was amazed to find the HR department was actually incented on limiting the total renumeration across the company to < 5% despite the net growth in head count. The middle management are incredibly niave in their attitude to staff and focus on revenue and outsourcing at the expense of solid business foundations. Expect Sam to cash in his shares in the next 12 months as the company has eroded its intellectual assets and is currently taking cash from customers without providing value.

    IBMers worldwide question IBM Anonymous -- 29/08/08 (in reply to #320110199)

    IBM management has lost all respect towards employees. In the US pay and benefits are getting cut while the execs get rich. Look at this site for employee news www.allianceibm.org

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