MPs unite to challenge IBM pension changes (From Romsey Advertiser)

MPs unite to challenge IBM pension changes

3:20pm Friday 8th January 2010 in News

FOUR south Hampshire MPs have backed a Commons motion challenging IBM on its retirement plans.

Nearly 100 MPs from all parties have now signed up to the parliamentary motion calling on the US technology giant to protect the pension benefits of its employees. They include the Eastleigh MP, Chris Huhne; Romsey MP, Sandra Gidley; Winchester MP, Mark Oaten; and Gosport MP, Peter Viggers. It comes after mounting concern by IBM employees at Hursley.

IBM employs 6,000 people in Hampshire at its UK research base at Hursley and its UK headquarters in Portsmouth. It has provoked unprecedented internal strife over its plans to close the final salary pension scheme and alter its early- retirement plan terms, despite posting record profits in 2008.

The Unite union claims hundreds of angry IBM workers have been joining up in readiness to fight the proposals, which they say will have “a devastating effect” on future pensions. It calculates that people in their mid-50s could typically lose up to £200,000. IBM adjusted its plans after staff consultation, but concerns remain.

M Huhne said this week: “Despite a positive meeting with IBM UK’s chief executive in October, many employees still, rightly, have concerns over the proposals.

“This Early-day Motion calls on IBM to fully consider these legitimate concerns before finalising their proposals. IBM should take note, as this motion has now attracted the support of 92 MPs.

“Hard-working and loyal IBM staff in Hampshire and around the country deserve to be treated fairly, and to be able to plan for their retirement with certainty. IBM needs to act now.”

Mrs Gidley has written to the Government, urging it to blacklist IBM from contracts.

IBM says the actions it is taking will enable it to maintain competitiveness in the marketplace.