Strike vote fuels IBM Australia debate

A potential impending strike action at one of IBM Australia's Sydney facilities has sparked debate about whether it was still worth striving to work at one of the largest and most prestigious technology firms in Australia and the world.

About 70 employees at IBM's Baulkham Hills facility will by midday Friday vote on whether to go on strike in a secret ballot. The workers want a collective agreement granting better pay and work conditions.

A number of readers who claimed to be current and former IBM staffers have been discussing the company, using ZDNet.com.au as a forum for the debate. With this in mind, we spoke to a number of past IBM Australia workers to get their thoughts on the matter.

An IBM spokesperon declined to respond directly to the issue, reiterating previous comments that the firm was "widely recognised as an employer of choice, offering competitive remuneration and a very broad range of benefits for employees".

The upside
Most past IBM employees ZDNet.com.au spoke to this week had a broadly positive view of the firm.

"I spent the first couple of weekends working in the office," said one. "I was surprised to see people who lived locally who brought their friends to barbecues there." The worker was incredibly excited when he started because the reputation of the company preceded it: "IBM was seen as a great place to work".

He said that although it was expected that IBM employees worked hard, the feeling was at the time that staff were there to make their career and wanted to do good work. "Because it's a performance-based culture, if you have a good track record that's great," he said.

The pay structure was a good one, according to an ex-employee who worked in sales to Australian telecommunications companies. "The bonus could run up very quickly depending on your performance," he said.

It wasn't just the pay, however, but the perks that came with it such as health and education which didn't just extend to the employee but also to their family.

The bonus could run up very quickly depending on your performance

Former IBM Australia staffer

One employee who recently left IBM said the working conditions were certainly commendable. "For most of the people I know, the working arrangements were very flexible," he said. "A lot of people were there for less than a year and were able to have kids, get time off, be able to work from home two to three times a week," he said.

"I can understand why IBM has won a few awards for their treatment of women in the workplace," he continued.

Although he didn't believe the morale at the company was very strong, the ex-employee said a lot of people were happy to work for two to three years on low pay because they would get the company's name on their resume. Others stayed on because of the perks.

Others remained to gain good experience, he said. The company was a hot-bed for learning, with those who wanted to get ahead easily being able to acquire new skills across the different sections of the organisation.

"What impressed me the most was the opportunity to grow, not only locally, but regionally and globally as well," another ex-IBMer said.

Most echoed this sentiment, saying the organisation's size and scope allowed workers to gain a range of experience which they could never obtain in an in-house IT department, not to mention the fact that it looked nice on a resume.

The downside
The pay package, however, received less praise. "We were underpaid compared to other places," one ex-employee said, adding that IBM's reputation worked against the size of its employees' salary: "I think it's a situation that's held in other industries as well. If you are working for a place that has a big presence in the market, especially if you're straight out of university, they can afford to underpay you."

Not only did the worker think the pay was low, he also felt the way it was structured was deceptive. He said that employees would think they were getting $50,000 a year, but they might be getting quite a lot less because the company would have factored in 100 per cent of the performance pay.

"I think I may have got that whole component once in six years," he said.

He also felt the rankings for performance pay, from one to four, were distributed arbitrarily, because managers could only give a limited number of ones, and if a worker received the top score last year, he was unlikely to get it again the year after no matter how hard he worked.

The size of the company also brought its drawbacks, with some staff feeling suffocated under stiff processes.

"IBM's biggest challenge has always been that it's a very large organisation and has a big bureaucracy," one said.

One ex-employee shared an anecdote on layers of bureaucracy and management. Everyone around him received an email from on high saying that as of that day there would only be two cartons of milk for each floor per day.

IBM's biggest challenge has always been that it's a very large organisation and has a big bureaucracy

Former IBM Australia staffer

He said it felt as if there were too many layers between those at the bottom and the top, and that those at the top just pushed down decisions which the next level had to carry through. "Oh look at that — $200,000 a year on milk," he laughed.

The ex-employee also talked of the endless meetings which would suck up five months of a six-month project, which would leave a frantic scramble at the end to complete the necessary work for a client.

It could have been the culture rather than the size which had employees struggling to "achieve things in spite of the organisation", with one former employee who had since moved onto an open source organisation implying that it wasn't possible for companies like IBM to have an innovative and adaptive nature.

"I believe overall that any closed source proprietary organisation will ultimately struggle against open source organisations," he said.

Although another employee felt that former IBM CEO Louis Gerstner's revamp in the 90's had done a lot for the company in terms of decision-making speed, he also felt the competition was hard. "There are quite a lot of nimble and competitive rivals around now, and I'm not sure how IBM is coping," another said.

Another employee said the problem was money. "Bottom line was king," he stated, adding that working in the outsourcing division, staff were encouraged to always stick to the letter of the contract, providing the minimum level of service and making sure that anything extra was charged as an upgrade.

He acknowledged, however, that the mentality may have been a recent development. "Speaking to people who had been there for a longer period, 20 or 30 years, it hadn't always been that way," he said.

What have your experiences been like when working at IBM Australia? Has Big Blue changed for the worse over the years? Share your thoughts with us in the comments below.

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Talkback 9 comments

    Not A Happy IBMERAnonymous -- 29/08/08

    I have been with the company for 15 years and find that every year morale decreases throughout the company as there is constant fear of losing our jobs.
    Every quarter there are emails on how well the company is doing although from our immediate managers we are scared off by being told to cut back on expenses as much as possible and that the business is not doing well. Will this comes fear of losing our jobs.
    For gods sake they took away foam cups because of expense issues.
    For the past 5 years we are finding it hard to receive a pay rise and are always told there is not enough money in the bucket.
    Outside of IBM doing the same job there is better pay and less stress. IBM has its good points although as mentioned myself and my coleauges are fearful of being made redundant.
    In our opinion IBM is doing everything to outsource and save where possible but this is creating highly dissatisfied clients and IBM throws a smoke screen to cover themselves up.
    Definately not a company to work for to go home at the end of the day with peace of mind.

    Wondering when customers will catch onAnonymous -- 30/08/08

    I"ve been working in IBM for 20+ years. Smoke and Mirrors is the name of the game. Processes are burdensome, and the bureacracy is heavy. It takes forever and a day to get anything done. It is only thru the tenacity of the highly intelligent and skilled staff that anything gets done at all. All the comments in the article are true. Pay is low, morale is low. Wall street keeps hearing how wonderful profits are, but IBM scrimps and saves on EVERYTHING! Work at home employees can't even get re-imbursement for batteries that are used in the company supplied pagers. Of course, the fat cats in the C Suite are never held to the same cost cutting measures. They continue to get huge raises, while the work-horses of the company get NOTHING year after year. The glue that is holding this company together are the skilled employee base. With global outsourcing to any part of the globe, this will change. I pity IBM once that happens because once the folks that actually get things done are gone, (in spite of the burdensome processes) IBM will be transformed into a company where workers do only what they are told, or what they read in a LEAN manual, and nothing else. Intelligent thinking outside the box will be successfully killed by IBM. The customers will be the ones to suffer, but eventually ,they'll leave too and find a better company to work with. The real question is how long will that take to happen.

    Performance ratingsAnonymous -- 01/09/08

    "if a worker received the top score last year, he was unlikely to get it again the year after no matter how hard he worked."

    I'm sorry, but this is completely false. I've been with IBM for almost four years now, and have received a top rating for the past two years.

    Sounds like your manager is making up excuses...

    An ex-IBM ManagerAnonymous -- 01/09/08

    I was a manager with IBM for several years but left earlier this year after becoming disillusioned about how IBM treated its ‘loyal hard working talented’ employees.
    I had a team of 10 people reporting to me. I made ‘target’ five years in a row. To say thanks, at the end of 2007 IBM announced they were going to reduce my teams take home pay by in some cases $20 thousand dollars a year.
    Of course they didn’t say it like that. It was announced as a ‘restructure of their package’ and presented in a way (as someone else in this thread has said) showing a quite attractive ‘total market value’ for the packages. However to earn it you had to achieve 100% of every possible bonus one could ever get. Bonus targets over which you had no personal control, based on ‘pools and metrics’ no one in IBM seemed willing or able to explain how to achieve!
    To demonstrate how misleading this was, some packages offered were show to have a bonus element of almost $30,000 which meant each quarter that person would have to earn around $8,000 in bonus to hit the ‘salary package’ IBM claimed it was paying them. At the end of the first quarter my team got less that $2000 each, predicting a bonus for the year of under $8000, a lot less than the $30,000 counted in the ‘package’.
    This points back to the beginning of this piece where I said the actual effect of the ‘new salary packages’ was a reduction in take home pay for some people of $20,000 a year.
    I left ‘in protest’ earlier this year, and of the team I led only 3 still work there. Several have gone to IBM competitors, who pay much more than IBM these days, and indeed have done for some time.

    IBM....MehAnonymous -- 02/09/08

    I worked for IBM for 2 years after my copany was outsourced. The culture shock was the biggest thing for me. Layers of bureaucracy are ridiculous, but there again, what large company isn't like this? Nonetheless I was grossly underpaid, and heavily overworked. I was in an operational support role, supporting one of the bigger local clients. As noted in this post, support given was the bare minimum - anything extra was denied so we could charge extra $$$. Big business, the way of the future, whatever - I couldn't get out of there fast enough - I obtained a 6 figure salary immediately upon leaving. I'm sure having IBM on resume helped, however what gets me is that I would have stayed, and for less than what I make now, all I wanted was a little something extra - and my performance I believe was exemplary that year. I almost single handedly undertook a very large datacentre move and the migration of a customer website and backends - my bonus that year? After working 55+ hours for 3 months? $1200, no base rate increase - yeah, right, thank you very much. Here's my resignation, go to hell.

    This aside, the people I worked with at IBM were very good, and the office culture was fairly lively which I think is important - but for the love of god, look after your good people - they will leave if you don't. I encouraged one such staff member to get his resume out there and get the hell out. This guy had undertaken a 6year engineering degree - hardcore stuff - could code a TCP/IP stack, and had been previously employed by a small software company that paid him very well. He joined IBM for the prestige - he left 12 months later. Don't blame him, we had the poor guy doing reports and updating spreadsheets - complete waste of talent, and they let him walk. He didn't even want more money, he was just after something technical and challenging.
    Anyway, enough griping, I got what I needed from IBM so no complaints, it's just a shame is all.
    FYI - training aint bad, generally if you ask, you will get.

    Quotas, Ratings, and general moraleAnonymous -- 02/09/08

    It is completely true that there are staff within the various areas of IBM who are fortunate enought to have a strong manager who is willing to treat them fairly and equally, and rate them as they deserve. This is, however, the exception, and not the rule.
    In 7 years with big blue, I saw this only once, and that manager was relieved of his responsibilities and moved sideways. Having had the bucket, bell curve, and quota talk directly from a second line management several times, I would not dismiss anyones negative experiences.
    Training is NOT a universal constant - cost factors play a huge part, and if you are unlucky enough to be outside of Melbourne or Sydney, then invariably your training is impossible, as travel is not an option. Training is often used as a reward option where ratings quotas restrict appropriate bonuses and increments, and if you work in a services area, there are none of the bonuses that the sales areas are subjected to.
    Sage words of advice given to me were to negotiate as hard as you can when you join Big Blue, because it will be a long time before your salary makes any head way.
    IBM may win EEO awards, but there are far more negative experiences with gender bias than positive ones.
    There are too many excuses made on the part of some lines of management - you can't work staff 70+ hours a week in stressful environments, and expect top results and ongoing loyalty from them.
    There is a massive discrepancy in wages for staff at apparently the same level/role. Add to this threats of punitive action for discussing your results and your salary, little or no opportunity for genuine engagement of staff and management to resolve morale issues, and it is no wonder that there are unhappy staff.
    More power to the BH staff who are standing up for themselves - it is certainly a very brave move, and I hope that they fully appreciate the potential cost of this move.
    Things will never change as long as the culture of fear and intimidation reigns.

    The IBM wayIBMWAY -- 03/09/08

    Take over companies/data centres either by force or in outsourcing agreements. Tell all sorts of lies to keep staff happy. Keep wages low by quoting 'market figures' and IBM banding policy. Change policies to suit, keep staff scared of the big 'offshoring beast', cut staff to a level of approx 30% less that actually required and work your staff ragged. The IBM bubble is about to burst - stand back, it will be ugly !

    IBM Strategy didn't work!Postmortem -- 23/09/08 (in reply to #320111226)

    Australia was meant to be the "Sales" branch promoting the Blue solutions at the Data Centres, instead of the Green space that had been conquered over ten years. Those of us who had Multi-Vendor expertise were forced to Sell "Blue" or leave. Ignorant and young Line Managers were hired to get rid of experienced professionals without retrenchment packages.
    I hope the Line Management will be held accountable for their actions one day! Clients valued IBM only for the "quality" of service; not for low cost , inexperienced labour as portrayed by Line Managers. As expected the results showed up in less than six months of professionals leaving the company. Clients with multi-billion $ contract will get their money back!

    IBM Management in AustraliaAnonymous -- 23/09/08

    You are spot on mate! Anybody who dared to be honest and sincere was considered an enemy.
    I chose to resign rather than serve the Mafia.

    Young thugs were hired to be Line Managers; they had no education or understanding of technologies. PBC ratings were just a big joke!
    Spies got a rating of "1". Diligent, Hard workers who served the client contracts got "2" or "3" dependent on their salary Band.

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