IBM settles sackings dispute

Big Blue has settled its potential big blunder over outsourcing sackings after being forced into a hearing of the Industrial Relations Commission.

IBM's joint venture with Telstra - IBM Global Services Australia (IBM GSA) - informed the Community and Public Sector Union (CPSU)at the end of March that it was making 64 staff redundant.

Workers were given no warning and staff based at St Leonards in Sydney were told only 16 jobs were available - however, this would mean relocating to Clayton, Victoria and decisions had to be made within a fortnight.

Staff picketed IBM's Sydney headquarters during the dispute.

Although the CPSU wouldn't disclose details of its settlement, it said it was "satisfied" with the outcome.

Workers now have three options - redundancy, redeployment or relocation.

"We are satisfied that [the settlement] addressed most of our member's concerns," CPSU Industrial officer, Priya Carey told ZDNet.

"Some people will seek redeployment, some will be seeking retrenchment - which will include severance payments - and a small number may take up the option of relocation to Clayton."

However, exactly how many jobs and what they would be under the redeployment option still isn't clear, according to Carey.

Those who choose redeployment will have the option of being made redundant if they're not happy with the move within 12 weeks, the CPSU said.

Workers in Sydney now have until May 3 to decide whether to relocate.

Although the outcome of the 64 workers has been settled, the union says IBM-GSA is still stalling enterprise agreement negotiations.

"The making of a new enterprise agreement still hasn't been resolved by this settlement," Carey said.

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