In a putative class complaint, dated April 28 but made publicly available on Wednesday, former IBM employees John McCormack, 46, Mark Lingl, 48, and Ron Shelton, 58, allege they were laid off at the same time the company was actively recruiting younger workers to fill positions for which they were qualified.
The complaint alleges that in 2013, IBM publicized a corporate policy that targeted advertisements for job openings at young, recent college graduates.
“Such advertisements were nationwide in scope and reflected a like policy to discriminate against older workers and to exclude them from consideration from a whole range of jobs for which many would qualify,” the complaint said.
The suit adds that McCormack, who was laid off in December, had previously worked at an IBM facility in Hopewell Junction, New York, and spent several months prior to his layoff applying to other positions at IBM. Despite having the “qualifications and technical skills to successfully fill many of these positions,” he was not offered any of the jobs and was allegedly told by IBM supervisors that the positions were intended for younger people. ...
The case is McCormack et al. v. IBM, case number 7:14-cv-03242, in the U.S. District Court for the Southern District of New York.
But there is no comment from either IBM or the company that news reports have identified as the most likely buyer, GlobalFoundries.
It's been a month since The Wall Street Journal, citing unnamed sources, said GlobalFoundries was the leading contender to buy IBM's semiconductor manufacturing business. It's been three months since the Financial Times, also citing unnamed sources, reported that Goldman Sachs had been hired by IBM to find a deal for its chip business.
The Bernstein team notes that International Business Machines Corp.’s share purchases have been helping hold its stock steady recently. The company bought back about 10% of its daily trading volume in the fourth quarter of 2013 and 14% of it in the first quarter. An additional factor the analysts believe has contributed to IBM’s stock price stability is the recent shift away from high-growth, high-valuation stocks. ...
The Bernstein analysts do point out, however, that over the last 13 quarters, International Business Machines Corp. stock outperformed in four of the last five times when the company itself and Buffett have, together, made up at least 9% of share purchases in the quarter. On the other hand, the stock underperformed in five of the eight times when Buffett and IBM together made up 8% of less of all the purchases during the quarter.
Pros: Research labs and the history.
Cons: Rest...chaos, top heavy, slow to respond to market, muzzle employee, inflexible.
Advice to Senior Management: Before you can win customers, you have to have happy, satisfied and driven employees. IBM is not seen as a family where people commit but a place where people have got lost. Company is fighting a battle of survival and EPS and in process losing employee and customer trust. Not sure how long you can survive serving stock markets.
Pros: Fun activities; time pass; losing technical skills; get negative approach towards everything. Bathrooms are decorated in lights are ambient to give you feel of a pub. ROFL; Free tea and biscuits (Thank God).
Cons: No technical upskilling; idiotic policies; hopeless projects where one will lose all technical skills and gain inanely negative attitude towards life; poor managers and their abominable skills; fights in travel cab — LOL, can't imagine waiting on road for long because moron manager n employees fighting; people management is at its worst; worst cafeteria ever imagined. I mean come on, can't we have food court for ourselves than clubbing with other orgs. Wake up. employees cant bear you with no or abject standard of food.
Advice to Senior Management: Get life. Awake. Win new projects. Focus on technical skills upliftment than conducting idiotic meetings of senior managers which are mere a waste of time and money.
Pros: Is an important player on the IT market; front runner in globalization. Good reputation. Flexible working conditions.
Cons: Lost moral by skipping respect for the individual (see layoffs) and for society (see tax avoidance). Trying to put processes everywhere, leading to bureaucracy and inhumanity. IBM was and is a US-based and US-culture led organization. Culture and Values seem to be lip-services (see middle management swamp).
Advice to Senior Management: Think about long-term sustainability, not only look at linear goals like EPS growth. EPS growth as singular target is killing the company.
Pros: While working as a subcontractor had its advantages at times since these is no cooling off period since you work for IBM instead of the financial company directly. This allowed me to be there almost four years with no gaps.
Cons: To increase their bottom line they would ask that you take 40 hours off UNPAID each quarter. From what I understood the contract they had with the financial company was to provide service for a set fee so even though we were not being paid they still were. We were also asked to not tell the financial company we worked for that we were required to take UNPAID time off.
Advice to Senior Management: Stopping telling your contractors that you need to do this to continue the services while at the same time having billions in profit for the quarter.
Pros: Work with a lot of smart people, most of whom are willing to share their knowledge and experience. Working at home adds nice flexibility, even if it can be isolating. The brand has great recognition and respect. There are opportunities to try new roles, though in general, roles are very narrow in scope.
Cons: Through layoffs and attrition, the team has become very, very lean. We have "resources" available in India, Brazil and elsewhere, but they're often much less experienced than those they're replacing. With three major reorganizations in less than a year, there's a lot of confusion and churn over priorities and goals. Since most people work from home, there's a heavy reliance on conference calls, with 5-6 hours/day not unusual. Even with several consecutive years of "top performance," raises have been minimal or non-existent — never more than 2% in a year. Too much bureaucracy; it can take a long time to accomplish what should be simple tasks.
Pros: Global company with huge portfolio of advanced software and hardware products, competitive cloud platform (SoftLayer) and good (but not great) service capabilities. Vast sales and distribution network across all industries, strong ties to government institutions (in most countries), access to the largest companies across the globe. Solid (but rapidly deteriorating) technical and consulting know-how. Attempts to "move decisions closer to the clients" are laudable, but drown in the sea of incompetence.
Cons: Mid-level management structure and their lack of skills (both technical and people-management) are absolutely atrocious. There are layers upon layers of "pointy-hair managers" — every other Dilbert cartoon seems to be inspired by IBM. 2015 EPS target drives all decision making, cost-cutting replaces innovation, and there is a shortage of ideas where the new growth should come from.
Advice to Senior Management: Eliminate redundant management layers — not ground-level workers who do their jobs. Get real about rhetoric and make everyone "walk the walk", while getting behind the employees and focusing on client needs, not just profits and revenue disguised as "value-based pricing".
Pros: IBM pays very well and they have an average benefit program. The vacation benefit is very good. They have flexible schedules for most positions.
Cons: IBM states that they are remaining in the hardware business. History would indicate that this is not true. Initially they sold Storage to Hitachi. Then they sold the desktop/laptop business to Lenovo. They are currently in the process of selling low-end servers to Lenovo and laying off a good portion of their mid-size mainframe server employees. Anyone accepting a job at IBM in the US hardware business should plan on a short duration at IBM.
Advice to Senior Management: IBM was once the greatest company to work for. It has degraded over the past 30 years for employees in hardware design and manufacturing and any related teams that support hardware manufacturing. When IBM was strong they provided long-term 5-year plans to the employees a couple of times each year. The last time I saw a 5-year plan was in the mid 90's.
There are far to many directors, vice presidents, and presidents within IBM. The corporate portion of the company has gotten greedy like many companies. The hard-working middle-class employees that have been part of the company for 20+ years are paying the price by getting laid off in a part of their life where getting another job with equivalent vacation, pay, and benefits is impossible.
The big question is how long will IBM last once they no longer manufacture hardware?
Pros: There are some great people here. Large company with great history and some really great potential.
Cons: Concerns are painfully obviously 100% about EPS and 2015 roadmap, to the detriment of employees. "Work-life balance" now called "work-life integration", which gives you an idea of how the employee is viewed. Chew 'em up and spit 'em out.
Advice to Senior Management: Do away with "work-life 'integration'" and get back to focusing on BALANCE
Pros: There was a time of good training and team building, not anymore.
Cons: There is no care for their people and even less care about their customers. Rather save money and drop support people hoping nothing goes wrong. This company is strictly run by Finance which is very short on strategy. no building today to use tomorrow.
Advice to Senior Management: Forget roadmap 2015 because EPS won't keep IBM going in the long run.
Pros: Salary compensation was reasonable and similar to other area positions. People are generally very helpful when working across the more global organization. IBM has the technology and resources to pull-off major engagement opportunities and also to bring numerous products into an integrated solution.
Cons: The bureaucracy is absolutely terrible along with the ridiculous expense controls. If my project team needs a simple tool or immediate need replacement part, it should not take two months of procurement hell. I should be able to go down to Fry's and get the immediate need part. Talk about lack of empowerment. Jobs continue to get off-shored.
Pros: Acts with integrity. Employs great people. Depth of expertise and innovation (leader in patents for many years).
Cons: Extreme emphasis on process and approvals stifles creativity and risk taking. Short-term focus on earnings per share trumps long-term view and treating employees well. Difficulty in growing revenue. Low employee morale and loyalty.
Advice to Senior Management: Empower employees to make decisions. Grow revenue. Reward people for their contributions. Adopt a long-term focus that balances business results and employee satisfaction.
Pros: If you are looking for a lifetime career you can very well find it IBM. Benefits are good; pay is fair. It is the rare individual who will "kill it" from a salary standpoint, unless you time it right in sales, or are a GBS Partner. If you enjoy process overkill with minimal oversight and direction, freedom to shape your role and the opportunity to be involved in a massive team matrix style of management, IBM is an interesting place.
Cons: Surprising the number of "lifers" that are employed/in hiding at this company, many without any experience outside of IBM. IBM may pride itself on the number of acquisitions and the numbers of "new" IBMers in the ranks, but those folks quickly figure out the stifling environment and bloated layers of management within the company and realize if they want to do anything innovative they seek roles elsewhere.
Advice to Senior Management: Trim 100,000 employees, delayer management, find a stronger CEO with some direction.
None of the executives seem to realize that they are basically "selling the truck for gas money." They themselves are deliberately setting it up so they can take their share and get the golden shower; I mean parachute. At some point in future this 5 year plan will be identified, but only after execs have left with a robber barren worth of share. And, they all know that and someone will be put in place to rebuild Humpty Dumpty. The current execs are only looking to how much can they get before Humpty falls from the wall -Itsart-
I personally know of organizations that are about near ridding themselves of all IBM software and hardware. They are sick of its sales people and its products and high fees and its poor standing in the court of public opinion. -ANONYMOUS-
Also, the GDP bonus that Ginny said the PBC 1 folks would get was converted into an outstanding contributor award by payroll (probably for some tax benefit or so they don't have to 401k match as I think someone said), which then eliminated anyone on commission from receiving the award, so there you have a brand new batch of top contributors (PBC 1) who are highly motivated to leave and work for the competition. -ShipGoingDown-
The answer is it won't increase IBM's overall quarterly results, yet it will pad GBS's pockets. Your management team in GBS on the IBM internal account have their own internal billing targets that they are supposed to meet. So they are willing to have GBS employees submit falsified CLAIMs (reporting and billing time NOT worked on internal projects as if it was). This falsified reporting won't impact IBM's overall bottom line; however, it does negatively impact the IBM divisions being falsely "billed" while padding GBS' pockets since internal funds will flow from these divisions to GBS. When these managers/execs get promoted it will be further evidence that IBM's own internal measurement systems foster and reward unethical behavior. -RAd in 2009-
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