IBM and unions

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Trade unions have historically been unrecognized by IBM. Since the company's foundation in 1911, it has not recognized any in the United States, despite efforts by workers to establish them from 1970 onward. In Australia, Germany and Italy, several trade unions have limited recognition from IBM. IBM has been able to minimize membership even in traditional union strongholds in Western Europe. [1] : 60 

Contents

Industrial composition

IBM was founded in 1911 in Armonk, New York. [2] Over 260,000 employees work for IBM world wide as of 2023. [3] The New York Times reported in 2017 that about a third of IBM's employees (130,000 people) worked in India, more than any other country. At the time, fewer than 100,000 employees worked from the United States, the company's headquarter country. [4]

IBM's non-union status is due in part to its corporate culture that includes strong employee identification with the company and close individual relations between employees and their direct manager. [5] Rather than waiting for issues to arise, anonymous feedback by employees allows management to address grievances early on. If management becomes aware of unionization drives, investigation teams are formed to discourage unionization and explore alternatives. [2] : 227 

Transnational

In 1999, employees of IBM in Europe formed a European Works Council. [6] [7] In 2011, the global union federations UNI Global Union and International Metalworker's Federation [lower-alpha 1] formed the "Global Union Alliance" to coordinate labor activities across the globe among its affiliate unions. [9]

In a 2014 research study conducted by the European Trade Union Institute on transnational companies across 23 European Union (EU) states; IBM was the top 5 largest companies (employee size) in 12 EU states [lower-alpha 2] in the ICT sector. [10] : 215–217  The study explores the extent of industrial relations between IBM management and trade unions. On a scale of 0–5 where 0 means no union recognition exists and 5 being the best, IBM subsidiaries ranked an average of 2.77 across 11 different European states, [lower-alpha 3] slightly above the ICT industry average of 2.64. This ranked them ahead of competitors HP, Accenture, Microsoft and ranked behind Atos, SAP. [10] : 133 

Australia

In 2002, after IBM Global Services Australia (GSA) and Community and Public Sector Union (CPSU) failed to negotiate a common enterprise agreement for all 3,500 employees working on a Telstra contract (half of the employees were previously direct employees of Telstra and covered under a stronger agreement). [11] Previously CPSU organized two 48 hour strike actions after announced plans to fire 64 IBM GSA employees. [12]

In April 2010 the Fair Work Australia tribunal ordered IBM Australia to bargain with the Australian Service Union (ASU) representing employees in Baulkham Hills, Sydney in a mass layoff proceeding. IBM appealed unsuccessfully, claiming that ASU was ineligible to represent these employees. [13] 80 employees accepted collectively negotiated contracts concerning severance packages and sick leave in case of future layoffs. [14] [15]

China

Over 1,000 workers at the IBM Systems Technology Co. (ISTC) factory in Shenzhen went on a 10 day wildcat strike (without union support) between 3 and 12 March 2014, after management announced the transfer of the factory to Lenovo. [16] [17]

The strike was part of a larger trend of labor militancy in the Guangdong province. Workers demanded higher severance packages if they left and higher salaries if they transferred to Lenovo. [17] Most of the participating strikers accepted the initial offer by management. 20 employees were fired, including worker representatives. While the Shenzhen branch of All-China Federation of Trade Unions did not support the initial strike, it filed legal claims to reinstate the 20 fired workers. [18] [19]

Germany

IBM Germany has a Group Works Council, which concluded a central works agreement on the internal usage of artificial intelligence in the workplace. [20]

The German Trade Union Confederation (DGB) has the principle of one trade union for each company, but in practice, its trade union affiliates, ver.di (including its predecessors) [lower-alpha 4] and IG Metall have been competing since the early 1990s. They compete for union members, seats on the Works Councils with their respective union members and bargaining coverage via collective agreements. [22] : 323  In December 2001, ver.di and IG Metall agreed to form a joint collective bargaining committee with IBM Germany to resolve their internal union competition. [23]

In the absence of regional collective agreements or high union density, Works Councils fill a bargaining gap on certain topics like working time through works agreements. Company collective agreements  [ de ] would serve as a middle ground between trade union regional collective bargaining and the more formally regulated Works Council framework. [24] : 181–182 

In 1996, the union density at IBM Germany was less than 10% of its workforce, including membership of both trade unions IG Metall and German Salaried Employees' Union (DAG), [lower-alpha 4] yet IBM was a member of the Metal Employer Association ("Gesamtmetall  [ de ]") which ratified regional collective agreements with IG Metall, including the 35-hour workweek  [ de ]. In 1994, after corporate restructuring, five non-manufacturing subsidiaries of IBM Germany were created, none of which joined Gesamtmetall, effectively voiding their collective agreement coverage. Instead, they ratified company collective agreements with DAG, which deviated to a longer 38-hour work week. [24] : 175 

Italy

A still from the Second Life virtual strike with caption "In Solidarity with IBM workers" In Solidarity huge picket sign (1450626126).jpg
A still from the Second Life virtual strike with caption "In Solidarity with IBM workers"

In 2007, IBM announced they would cancel a performance bonus worth $1000 per employee. Shortly afterwards, on 27 September, the Italian trade union "RSU  [ it ] IBM Vimercate" which represented 9,000 IBM Italy workers, [25] coordinated a 'virtual strike' inside Second Life. Second Life is a simulation software that was used both internally by IBM for its employees and for marketing to external customers. [26]

Between 500 and 1500 real-life IBM employees across the globe signed up to disrupt IBM virtual facilities in solidarity with the Italian trade union's collective agreement negotiations. [27] Simultaneously, in real-life pickets were organized outside IBM Italy facilities. The virtual strike was supported by Union Network International. [26] [27]

One month later, on 24 October, the IBM Italy CEO resigned and the performance bonuses were reinstated, though the company claimed it was unrelated to the strikes. [26]

Japan

IBM Japan employees have been represented by Japan Metal Manufacturing, Information and Telecommunication Workers' Union (JMITU; Japanese : 日本アイビーエム支部) since 1959. [28] [ non-primary source needed ]

In 2019, the company rolled out internal HR software that used IBM's Watson artificial intelligence to advise on employee compensation. According to JMITU, for a June summer bonus, the software rated union members an average of 63% while other employees were rated 100%. The union lodged a legal complaint, alleging algorithmic discrimination. [29]

United States

In August 1970, the IBM Black Workers Alliance (BWA) was formed. [30] It was the first high-tech movement for under represented minorities, to protest lack of equal pay and promote opportunities for young, poor communities. [31]

Between 1978 and 1980 its membership grew five-fold to 1,700 people. In 1980, IBM fired four of the top eight BWA officers, including one for distributing salary pay-bands. [32] BWA existed until the early 1990s and had chapters in Atlanta, Cincinnati, Hudson Valley, New York City, and Washington DC. They were not a union, nor trying to form one, [30] but one member, Marceline Donaldson started organizing with the all Black Pullman Porters Union until she left IBM in 1979. In 1980, Donaldson filed a complaint with the NLRB and the EEOC alleging unfair labor practices and retaliation against Black employees joining the BWA chapter in Cincinnati. [33] [34]

Lee Conrad founded the IBM Workers United (IBMWU) in 1970s Endicott, NY as an independent grassroots union. It had an underground newsletter called "Resistor" [1] : 60  which highlighted IBM's sale of computers to apartheid South Africa, comparing them to IBM's sale of computers to the Nazis. [35] In the 1970s, members of IBMWU distributed fliers at an IBM shareholder meeting titled "Would IBM have Sold Computers to Hitler?" [36] protesting IBM's business with apartheid South Africa. [37]

In 1999, IBMWU affiliated to the Communications Workers of America (CWA), rebranded itself as Alliance@IBM under CWA Local 1701, [38] with Conrad as its lead coordinator. [37] [39] In 2016, Alliance@IBM shut down, citing low membership, outsourcing and union busting. [40]

Notes

  1. ↑ In 2012, the IMF merged with the ICEM and the ITGLWF to form the IndustriALL Global Union. [8]
  2. ↑ Bulgaria, Czech Republic, Denmark, France, Hungary, Italy, Poland, Slovakia, Slovenia, Spain, Sweden and United Kingdom. [10] : 215–217  
  3. ↑ IBM subsidiaries ranked from highest to low: [10] : 133 
    4: Denmark, Hungary
    3: Czech Republic, Ireland, France, Spain, Sweden, United Kingdom
    1–2: Bulgaria, Slovakia, Slovenia
  4. 1 2 In 2001, German Salaried Employees' Union (DAG) merged to form ver.di trade union. [21]

Related Research Articles

A trade union or labor union, often simply referred to as a union, is an organization of workers whose purpose is to maintain or improve the conditions of their employment, such as attaining better wages and benefits, improving working conditions, improving safety standards, establishing complaint procedures, developing rules governing status of employees and protecting and increasing the bargaining power of workers.

Labour laws, labour code or employment laws are those that mediate the relationship between workers, employing entities, trade unions, and the government. Collective labour law relates to the tripartite relationship between employee, employer, and union.

<span class="mw-page-title-main">Strike action</span> Work stoppage caused by the mass refusal of employees to work

Strike action, also called labor strike, labour strike and industrial action in British English, or simply strike, is a work stoppage caused by the mass refusal of employees to work. A strike usually takes place in response to employee grievances. Strikes became common during the Industrial Revolution, when mass labor became important in factories and mines. As striking became a more common practice, governments were often pushed to act. When government intervention occurred, it was rarely neutral or amicable. Early strikes were often deemed unlawful conspiracies or anti-competitive cartel action and many were subject to massive legal repression by state police, federal military power, and federal courts. Many Western nations legalized striking under certain conditions in the late 19th and early 20th centuries.

Collective bargaining is a process of negotiation between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, benefits, and other aspects of workers' compensation and rights for workers. The interests of the employees are commonly presented by representatives of a trade union to which the employees belong. A collective agreement reached by these negotiations functions as a labour contract between an employer and one or more unions, and typically establishes terms regarding wage scales, working hours, training, health and safety, overtime, grievance mechanisms, and rights to participate in workplace or company affairs. Such agreements can also include 'productivity bargaining' in which workers agree to changes to working practices in return for higher pay or greater job security.

A works council is a shop-floor organization representing workers that functions as a local/firm-level complement to trade unions but is independent of these at least in some countries. Works councils exist with different names in a variety of related forms in a number of European countries, including Great Britain ; Germany and Austria (Betriebsrat); Luxembourg ; the Netherlands and Flanders in Belgium (ondernemingsraad); Italy ; France ; Wallonia in Belgium, Spain and Denmark.

<span class="mw-page-title-main">IG Metall</span> Dominant metalworkers union in Germany

IG Metall is the dominant metalworkers' union in Germany, making it the country's largest union as well as Europe's largest industrial union. Analysts of German labor relations consider it a major trend-setter in national bargaining.

ver.di Trade union in Germany

Vereinte Dienstleistungsgewerkschaft is a German trade union based in Berlin, Germany. It was established on 19 March 2001 as the result of a merger of five individual unions and is a member of the German Trade Union Confederation (DGB). With around 1.9 million members, Verdi is the second largest German trade union after IG Metall. It currently employs around 3000 members of staff in Germany and has an annual income of approximately 454 million Euros obtained from membership subscriptions. The trade union is divided into 10 federal state districts and five divisions and is managed by a National Executive Board (Bundesvorstand) with nine members. Frank Bsirske was the chairman of Verdi from its founding in 2001 until September 2019, when Frank Werneke was elected.

<span class="mw-page-title-main">Strikebreaker</span> Person who works despite an ongoing strike

A strikebreaker is a person who works despite a strike. Strikebreakers are usually individuals who were not employed by the company before the trade union dispute but hired after or during the strike to keep the organization running. Strikebreakers may also refer to workers who cross picket lines to work.

<span class="mw-page-title-main">Union busting</span> Efforts to prevent or hinder unionization among workers

Union busting is a range of activities undertaken to disrupt or weaken the power of trade unions or their attempts to grow their membership in a workplace.

Trade unions in Germany have a history reaching back to the German revolution in 1848, and still play an important role in the German economy and society.

<span class="mw-page-title-main">Labor relations</span> Study of work and workers

Labor relations or labor studies is a field of study that can have different meanings depending on the context in which it is used. In an international context, it is a subfield of labor history that studies the human relations with regard to work in its broadest sense and how this connects to questions of social inequality. It explicitly encompasses unregulated, historical, and non-Western forms of labor. Here, labor relations define "for or with whom one works and under what rules. These rules determine the type of work, type and amount of remuneration, working hours, degrees of physical and psychological strain, as well as the degree of freedom and autonomy associated with the work." More specifically in a North American and strictly modern context, labor relations is the study and practice of managing unionized employment situations. In academia, labor relations is frequently a sub-area within industrial relations, though scholars from many disciplines including economics, sociology, history, law, and political science also study labor unions and labor movements. In practice, labor relations is frequently a subarea within human resource management. Courses in labor relations typically cover labor history, labor law, union organizing, bargaining, contract administration, and important contemporary topics.

A collective agreement, collective labour agreement (CLA) or collective bargaining agreement (CBA) is a written contract negotiated through collective bargaining for employees by one or more trade unions with the management of a company that regulates the terms and conditions of employees at work. This includes regulating the wages, benefits, and duties of the employees and the duties and responsibilities of the employer or employers and often includes rules for a dispute resolution process.

<span class="mw-page-title-main">Amazon worker organization</span> Collective worker action at the American e-commerce company

Some warehouse workers of Amazon, the largest American e-commerce retailer with 750,000 employees, have organized for workplace improvements in light of the company's scrutinized labor practices and stance against unions. Worker actions have included work stoppages and have won concessions including increased pay, safety precautions, and time off. There are unionized Amazon workers in both the United States and Europe.

A tech union is a trade union for tech workers typically employed in high tech or information and communications technology sectors. Due to the evolving nature of technology and work, different government agencies have conflicting definitions for who is a tech worker. Most definitions include computer scientists, people working in IT, telecommunications, media and video gaming. Broader definitions include all workers required for a tech company to operate, including on-site service staff, contractors, and platform economy workers.

<span class="mw-page-title-main">Volkswagen and unions</span> Collective worker action at the German auto firm Volkswagen

Workers of the German auto manufacturer Volkswagen Group are collectively organized and represented across a variety of worker organizations including trade unions and Works Councils across the globe. Workers are organized on multiple levels; locally, regionally, nationally, internationally and by marque.

<span class="mw-page-title-main">Siemens and unions</span>

Siemens AG employs 311,000 employees globally as of 2022. Historically, Siemens supported and illegally financed the anti-union Works Council lists from AUB. More recently, the IG Metall has won the majority of Works Council seats. In the European Union, employees are represented on the Siemens Europe Committee.

<span class="mw-page-title-main">Tesla and unions</span> Labor relations of the American car company

Tesla, Inc. is an American electric car manufacturer which as of January 2024 employs over 140,000 workers across its global operations, almost none of whom are unionized. Tesla CEO Elon Musk has commented negatively on trade unions in relation to Tesla. Despite allegations of high injury rates, long hours, and below-industry pay, efforts to unionize the workforce have been largely unsuccessful. As of February 2024, there are active labor disputes with Tesla in the United States, Germany and Sweden.

SAP SE employs 22,000 employees globally. Employees in Germany have been represented by a works council since 2006, and also have employee and trade union representatives in the Supervisory Board. Employees in Israel are unionised with Histadrut.

Currently Microsoft workers in the United States do not have a current labor union. This is expected to change with the acquisition of Activision Blizzard, which already recognizes a union in one of its subsidiaries. Microsoft USA workers have been active in opposing military/law-enforcement contracts with their employer.

<span class="mw-page-title-main">Jörg Hofmann (trade unionist)</span> German trade unionist

Jörg Hofmann is a German trade union leader.

References

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