Alliance@IBM: IBM Pension Change 'Yet Another Cut in Employee Benefits'

ENDICOTT, N.Y., Jan. 6 /PRNewswire/ -- At the end of the day on Jan.
5, IBM announced to the media, before notifying employees, that the
IBM pension plan of $48 billion will be "frozen" in 2008 and the
employee 401(k) plan enhanced.

"This is a further takeaway of the employees' retirement security and
part of a national trend to drive workers' standard of living down
while enhancing corporate profits and executive bank accounts," stated
Lee Conrad, National Coordinator of the Alliance@IBM, CWA Local 1701,
the IBM union organizing campaign.

The termination of the pension plan is expected to save the company $3
billion by 2010 according to IBM. No statement was made on how this
change affects executives' Supplemental Executive Retirement Plan
(SERP).

Linda Guyer, an IBM Software Group employee and president of the
Alliance@IBM said, "This is just one more top down edict from
corporate headquarters that leaves employees with no say. We have seen
this far too often. If a union contract was in place, changes as
significant as this to employee retirement would have to be
negotiated. It's time for employees to fight back."

Earl Mongeon, an IBM Burlington employee and vice president of the
Alliance, stated that for many long-time employees, the pension freeze
is a reversal of an implied promise. "The company just pulled the rug
out from us. The $48 billion in the plan is ours, because we built
this company."

The Alliance@IBM is deeply concerned that, considering the volatility
of the stock market and recent downturns that have wiped out
retirement for many, the move to retirement based on 401(k) savings
could be disastrous for many employees, especially those not savvy in
investing.

"IBM, like so many other companies, is either eliminating or not
offering the stability of a pension plan, or even basic benefits. The
signs are already there that the next generation of workers will be in
worse shape financially than this one. It is obvious that corporations
of today do not value the work employees do," stated Conrad. SOURCE
Alliance@IBM