Menu
Strike at IBM's China factory falters as hundreds quit jobs

Strike at IBM's China factory falters as hundreds quit jobs

About 1,000 workers had staged a protest outside the factory starting last week

Hundreds of striking workers at an IBM server factory in China have decided to leave their jobs, disappointed with the U.S. company and the wages they will get once Lenovo takes over the factory.

IBM plans to transfer ownership of the Chinese factory, as part of its proposal to sell its x86 server business to Lenovo. But on March 3, about 1,000 workers started protesting against IBM and its offer to employees to either move to Lenovo or take a severance package.

Among the workers' demands, was a call for a better compensation package, as some employees who had been at the factory for 10 years or longer were expecting more than was offered. There were also concerns that Lenovo would end up cutting jobs once the company takes over.

By Tuesday, most of the striking staff had decided to either return to work, or leave their positions, according to two workers interviewed. Some employees continue to protest, but the large crowd that once surrounded the facility, has diminished to about 100 people, they added.

One former worker, surnamed Luo, estimated that 300 to 400 workers had left the factory. Luo herself was among 20 employees fired on Monday for violating factory rules, and participating in "illegal gatherings" during the protest, she said in a interview.

The factory's management never gave workers any chance to discuss the terms for the transition, Luo added. Later, IBM gave a bonus to workers who agreed to return. Others decided to take the severance pay, she said.

"After a situation like this, many workers have changed the way they view the company," said another worker surnamed Zhang. "It left people dispirited."

IBM did not immediately respond to a request for comment. The server factory, however, has remained in operation after the company hired temporary workers to take over their positions, according to the former employees.

On Monday Lenovo issued its first statement on the strike, and pledged to protect the workers' pay and benefits, during the transition. "The talent we are acquiring is a great asset, and key to our long term success," it added.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Mergers and acquisitionsbusiness issuesIBMenvironmentLenovopersonnelElectronics manufacturing

Featured

Slideshows

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments