RESTRUCTURING   RETRENCHMENT

Australia - IBM Australia could cut more than 800 jobs if the company moves its business to low cost centres in India and China, said the Australian Services Union (ASU).

According to iTnews, IBM managers were informed last Wednesday that the job cuts would occur in the coming months. However, workers were not told which jobs would be affected.

In response, IBM spokesperson Matt Mollet said that any restructuring would be in line with the company's aim to align skills with business needs. "IBM continuously transforms its business, rebalancing skills and capabilities in order to meet the changing needs of clients and our business as a whole," he said.

But Sally McManus of the ASU said that the company has refused to meet with the union to discuss the issue. "ASU members also feel very strongly that if such highly skilled jobs are lost overseas, those workers affected should get extra redundancy payments as it is not just their job that is being lost, but a job forever in Australia for their children."

McManus also added that offshoring may also increase the risk of data theft, which could be an issue for IBM's clients.

 

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