IBM cuts pay at semiconductor plants

Despite pulling off a strong quarter in profit, IBM is reducing the pay of some in New York manufacturing workers. While workers are not happy with the decision, the company offers an explanation.

By Plant Engineering Staff August 8, 2008

The pay cuts and layoffs that have largely characterized the auto industry for the past year seem to be spreading to other areas. IBM Corporation is reducing the pay by up to 10 percent for some manufacturing workers at two facilities in New York. The company will end premiums paid to employees who work seven 12-hour work days over a two-week period, also known as an alternate shift at the facilities.According to a Poughkeepsie Journal report, Alliance@BMI , an employee group, said reactions among members were negative even though the company has promised a base pay increase in January. While this will somewhat offset the pay cuts, employees will still see a pay cut ofIBM announced in July that it would invest $1.5 billion in conjunction with a $140 million incentive from the state of Ney York. The company denied that the pay cuts and the deal were linked.