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June 27, 2012

IBM - No raises in 2012 for most of Global Tech. Services

Big Blue sent out an employee e-mail to its massive Global Technology Services unit this week saying don't expect any raises in 2012, particularly if you are an exec.

Ibm-logoGTS has a big presence in Rochester, which just announced creating five of the top ten world's fastest computers. Business Insider reported on this and then Computerworld followed up on it.

Any local IBMers have comments on this? Is it accurate? How big of a deal is this, if at all?

 Here's the email that Business Insider released:

GTS Employees,

The Employee Salary Program takes into account a number of elements, including compensation competitiveness in markets we serve, our ability to attract and retain people with skills we need, our business performance, and other employee investments.

It is essential for a services business to provide value-added services to clients at competitive price points.  Our objective is to ensure a competitive labor cost structure while moving aggressively into areas that are strategic to our clients and require innovative solutions.  This is fundamental to driving clear return on investments for our clients and to increase opportunities for all IBMers.

To balance our ability to remain competitive with the need to invest in people who have high-demand skills, there will not be a broad-based salary program in GTS in 2012.  Instead, we will target the 2012 investment to skill groups or focus areas as identified by each GTS line of business, based on local market needs.  These decisions do not affect the significant investments IBM makes each year in talent in addition to salary, including bonus programs, recognition, promotions, and skill development.

Your manager or leadership team will communicate additional information to you over the next few weeks.

Bob Zapfel
General Manager, Global Technology Services, North America                  

Richard A. Patterson
General Manager, GTS SO Delivery - Americas

Here's some from Computerworld's story on this:

IBM this year won't be awarding pay raises to its executives or to many of its workers.

The company said it is only giving pay raises to workers with high-demand skills that the company needs.

IBM typically awards raises during the mid-year period.

Ibm-logo"There are targeted skill groups of employees that are eligible for salary increases in 2012," said Trink Guarino, an IBM spokeswoman. "No executives will be eligible for salary increases."

Business Insider Tuesday published an internal IBM memo announcing the action that was sent to employees from from Global Technology Services executives.

One IBM employee, who didn't want to be identified, said he believes the lack of pay raises "is part of IBM's hyper-aggressive plan to meet its 2015 roadmap."

That IBM roadmap lays out an aggressive growth strategy, which calls for increasing the company's earnings per share by $20 by 2015.

The employee noted that the company has been spending billions in stock buybacks, but says it can't afford pay increases.

And obviously, IBM continues to cut large numbers of jobs, including many in Rochester. It ominously refuses to release any numbers citing competitive reasons, despite the fact that many of its competitors do release numbers like that.




IBM, and especially IBM Rochester is a mess. More and more of the buildings are empty or sold off. People are leaving in droves. Anyone who isn't close to retirement or tied down by kids is leaving, or is looking to leave.

The growth driven profit "bonuses" have basically been eliminated. Raises are more or less every other year. For Rochester's sake, I hope Mayo hires faster than IBM fires. The only thing that keeps everyone from spiraling into a deep depression is the joy obtained from mocking the sheer stupidity of a once proud company.

This is just a continuation of what they started 10 years ago with their vendor staff. IBM used to be tight on raises to their staff many years ago as well but managers told staff to remember the great pension plan they get...see how that turned out.

Prior to the last RA the IBM Rochester site population was 3599. On April 2 it was down to 3479 and many more people have left the company since then.

heard at lunch today that this isn't just GTS... STG and SWG both in the same boat.

Heard that only the top performers were getting a 1% raise. Nice! My advice to any IBM employee - GET OUT!!! The place isn't what it used to be and never will. Sinking ship:(

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