IBM strike could happen Thursday

By Suzanne Tindal, ZDNet.com.au
01 September 2008 11:15 AM
Tags: ibm, asu, union, services, strike, pay, conditions, mcmanus

IBM Australia could face strike action in a Baulkham Hills, Sydney facility on Thursday or Friday this week, according to the Australian Services Union, after the company failed to negotiate with the union over the weekend.

Sally McManus

Sally McManus, Branch Secretary of the Australian Services Union, had said on Friday that she was hoping IBM would approach the union after 45 workers at the company's "Flightdeck" facility in Sydney's Baulkham Hills decided via secret ballot to strike for better pay and conditions last week.

However, the company had not come to the table. "IBM's not contacted us at all. Absolutely nothing has happened," McManus told ZDNet.com.au this morning.

The union organiser said she thought the workers would go on strike on Thursday or Friday this week as a result.

Although the number of employees engaged in the strike was low in comparison to the thousands of staff IBM engaged across the country, McManus said that the group's bargaining power was high because the workers concerned were key to IBM's ability to service important customers.

"This group of workers is extremely industrially powerful," she said. "The work that they do is absolutely critical to the contracts that IBM has with their customers."

Westpac was one of the customers which would feel the heat of the strike, if it went ahead, McManus said. "What these workers do is monitor the infrastructure and monitor the batch processing so that if there is any small or medium problem they fix it. If these workers don't do that, that puts at risk billions of dollars of transactions."

Qantas, Cathay Pacific and Air New Zealand were also customers which would be hit, according to McManus, with IBM handling ticketing, rostering and crewing systems through the Baulkham Hills facility.

"If their IT infrastructure fails, planes won't fly," McManus said.

Customs and Medicare were two more major customers the strike could affect, and these big ticket contracts were "just the tip of the iceberg" the union secretary warned.

"IBM's got hundreds of customers. These people are absolutely mission-critical," she said.

Stay tuned for a complete video interview with McManus.

Talkback 17 comments

    Man-up IBM James -- 01/09/08

    I always thought IBM management was; slow to move with the times, listen to its employees and basically be in sync with the mood of the nation. It's telling, they are in love with Perter Costello's old WorkChoices and have been trying to implement their own. Peter Costello is gone guys, man-up and move with the times.

    Critical Simon -- 01/09/08

    This sounds like opportunism of the worst kind. Striking for pay and conditions is fine if you are being paid less than the market and conditions are unfair or dangerous. To strike for more pay simply because you are in a position to harm customers is contra to the spirit of unionism. If they are mission critical to the organisation, they should be lobbying for better pay and conditions without the aid of the union or a strike threat. (Negotiate a commercial arrangement!)

    No idea Anonymous -- 01/09/08 (in reply to #320111030)

    The previous statement "..lobbying for better pay and conditions without the aid of the union.." has been made with a complete ignorance of the situation in that workplace. There was no negotiating, there was only a "..if you don't like it, there's the door.." attitude from management. I'd like to know how a group in that situation can have any bargaining power at all without the legal protection of a union? As it is IBM legal team has sent a letter stating they reject the Industrial Commision's binding decision that these employees can even be members of the ASU and they will act accordingly. This is about better pay conditions not just more money. For example there is no redundancy benefit whatsoever for those employees. If you're surplus to IBM's requirements you get placed in whats called a 'redeployment pool'. This is essentially a dead-end dogs body position you either die of boredom in or you eventually resign. There is also no pay equality across the staff. People doing the same job with the same experience, indeed sometimes more of both, are getting paid much less than others. Having these things corrected is what the unionism here is about NOT as I said simply more money for all. Then there's the decline in customer service because it's cheaper to do it badly story...but there's not the room here for that one.

    Goose unionmember -- 03/09/08 (in reply to #320111030)

    you are an IBM drone. go back into your hole. IBM has taken enough blood from this stone - there will be no more. If you knew the whole story, you would know that all internal options have been exhausted. The only thing left was is union action.

    You Bet Anonymous -- 01/09/08

    You can bet your dollar that IBM management has a trick up their sleve. IBM is ignorant and this shows that they dont give a stuff about their employees. What a great company to work for. Dont strike for a few hours strike for a week and lets see what management will do then. If they dont want to come to the party make them.
    Strike for a week or two and lets see if IBM will still be quiet. I bet the customers would fire back on that one.
    Time to respect your staff IBM and work with them to make morale and production better.
    70 people is not enough in my opinion perhaps other departments join the party.

    False statement Anonymous -- 02/09/08

    The following comment is completely false!
    ("However, the company had not come to the table. "IBM's not contacted us at all. Absolutely nothing has happened".)
    Several meetings have been held between IBM, the union and the staff involved. This is a case of opportunism by the union and the staff involved.

    Mr Abusive Anonymous -- 02/09/08 (in reply to #320111084)

    Instead of writing abusive comments try to think before engaging brain and fingers. We don't employ jackasses at IBM, and the workers that are not happy are not happy because they are unhappy people. They probably wouldn't be happy at another company. They probably aren't happy with their lives in general. IBM is just the unfortunately entity that ended up having to deal with these unhappy people.

    Mr Abusive Anonymous -- 02/09/08 (in reply to #320111091)

    BTW the comments in the previous "Mr Abusive" are the comments of an individual and don't in any way reflect the official position of IBM.

    Seems the propaganda war is on Anonymous -- 02/09/08 (in reply to #320111073)

    In the full context of what she said it most certainly is NOT false. The article states "...said on Friday that she was hoping IBM would approach the union after 45 workers ... decided via secret ballot to strike..." Friday. A FULL WEEK after the ballot and nothing was heard with regard to coming to an agreement. You took it literally, perhaps to misrepresent it as IBM is trying hard and the union a hell bent on striking? I wonder...

    IBM Union Does Not Represent IBM Anonymous -- 02/09/08

    This IBM "Union" does not represent IBM (and fellow employees like me). IBM is still a great company to work for. Management does care about its employees, being a cared for employee myself I know this to be true.

    It's these striking opportunists that are selfish, giving IBM a bad name and trying to bully our company into giving them more money which they don't deserve, bypassing the proper channels for pay raises and discussion about conditions, trying to get more pay through bullying which takes it away from those of us that are happy to let the tried and trusted processes give us our reward.

    I hope that the powers at our great company take decisive action and ensure that these employees don't set a precedent that makes striking a way of life at IBM.

    Also the comments that people have written show a complete ignorance of IBM by people with no experience of the company. IBM management does listen to its people.

    Others reading the misleading comments should join the company and see how forward thinking we really are and how much we have changed, for the better. IBM manages are not ignorant.

    These views are my own and not those of IBM.

    Bravo Anonymous -- 02/09/08 (in reply to #320111090)

    Obviously, brainwashing works in some IBM departments.

    RE : Mr Abusive Anonymous -- 02/09/08

    While I agree with you about the abusive comments, it doesn't follow that being happy in your situation means thats the same elsewhere in IBM. Your statement "..the workers that are not happy are not happy because they are unhappy people." is based on what understanding of the situation exactly? And if that's the case why have these 'unhappy people' taken so many years to take this action? I can tell you it's because recent circumstances in that particular workplace, of which you appear to be ignorant of, have built up a sense of mistrust, hopelessness and resentment that's lead to the unionism of that site.
    The number of comments I''m seeing from people judging this situation with an arrogant attitude of "I'm happy so what's their problem?!" is getting depressing.

    Watching closely with interest. Anonymous -- 03/09/08

    Many IBM employees working in call-centers in a certain regional Victorian town will be watching developments with great interest. Operations at this location are not too dissimilar to the 24/7 operations of the "Flightdeck" in Sydney's Baulkham Hills. Casual employees in this regional location have been receiving the one low pay rate since operations began over 10 years ago.

    While IBM management at the local level do listen, and try to make the centers a "Great Place to Work"; the fact remains that when the casual pay rate has remained the same for over 10 years, and the cost of living increases, staff will growingly become discontent. Difficulties have always been from higher up, and in the end it iss always going to about returns for the shareholders.

    If employees in the call-center in this location were to join the Australian Services Union in a move for assistance in better conditions; any strike action could have much more severe consequences for the company.

    join up NOW !!! fighter not quiter -- 03/09/08 (in reply to #320111171)

    Don't sit back and watch. IBM have sucked us dry for too long now. 10 years on same pay rate - that is an insult. Staff on the flightdeck at BH have had similar problems. We decided to do something about it. The other option is to lay down and cop it for another 10 years !!! your choice now.

    IBM and Operations anonymous -- 07/09/08

    I am still currently with IBM and it is a good company, I have also had pay rises.
    The issue here is that all other department get treated differently, we hear stories of other departments, how great they are, how they are moving forward, the rewards they get, how management listen and make change to what workers are saying. Sounds great right?
    Well not when it come to OPERATIONS a totally different department that plays a MAJOR role within IBM. Without operations IBM could not run all the Major accounts.
    The one thing I cannot understand about IBM is that I think is the biggest IT company in the world, and IBM has great people with great ideas working for them. So in saying this why can't IBM think of better, smarter ways to make money than to cut numbers down in operations the ONE department that plays the BIGGEST role in keeping these major clients? IBMs turn over every year is in the billions.
    So when it comes to Operations the only way IBM can increase profit every year is to cut workers and off shore t to cheaper countries, that maybe fine from a company point of view. But what about our clients getting cheap labour its really is taking its toll on IBM's service to major clients, surely if they knew this they would not be happy.
    IBM work smarter you are better than that.....
    And it is true You pay for what you get.........

    Do what the execs would do... Anonymous -- 08/09/08

    I work for IBM in the US. HEre, the execs in Armonk take from the company and sit around figuring ways to take more from employees, every year. We lose more every year. They just announced a 10% pay cut for my people, starting Jan 1, 09. It is all about stock option for these people. Strike.

    A former long term IBMer speaks out Anonymous -- 29/12/08

    IBM is no longer a company to work for. I joined in the late 1970's and the early years were terrific. Under Louis Gerstner, it all started falling apart, with the then IBM Australia chairman Robert Savage selling off hundreds of IBM Wangaratta employees to a startup company in 1998. Savage said to the employees verbatim, "You either join the new company or you will be deemed to have resigned from IBM in which case there will be no redundancy." IBM recognised those long serving employees with an offer of a 30% discount on a new Aptiva PC, which the employees had built anyway. I have since heard IBM has been a lousy company to work for and the few old timers left are just hanging out for retirement. I would envisage IBM will become a relic of the past within 10 years. I suggest all current IBM employees make the senior executives accountable rather than letting them reap massive salaries and stock options. If the employees need to strike, so be it. Despite the articles written about him, Louis Gerstner in my opinion destroyed IBM and is so doing, ruined a lot of lives and careers.

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