Featured Articles

5th Generation Broadwell 14nm family comes in three lines

5th Generation Broadwell 14nm family comes in three lines

Intel's 5th Core processor family, codenamed Broadwell, will launch in three lines for the mobile segment. We are talking about upcoming…

More...
Broadwell Chromebooks coming in late Q1 2015

Broadwell Chromebooks coming in late Q1 2015

Google's Chromebook OS should be updating automatically every six weeks, but Intel doesn't come close with its hardware refresh schedule.

More...
New round of Nexus phone rumour kicks off

New round of Nexus phone rumour kicks off

Rumours involving upcoming Nexus devices are nothing uncommon, but this year there is a fair bit of confusion, especially on the…

More...
Nvidia officially launches the 8-inch Shield Tablet

Nvidia officially launches the 8-inch Shield Tablet

As expected and reported earlier, Nvidia has now officially announced its newest Shield device, the new 8-inch Shield Tablet. While the…

More...
Aerocool Dead Silence reviewed

Aerocool Dead Silence reviewed

Aerocool is well known for its gamer cases with aggressive styling. However, the Dead Silence chassis offers consumers a new choice,…

More...
Frontpage Slideshow | Copyright © 2006-2010 orks, a business unit of Nuevvo Webware Ltd.
Thursday, 24 January 2008 07:08

IBM to slash salaries as part of settlement

Written by David Stellmack
Image

Some employees to get overtime

IBM has settled a lawsuit that was filed where it was accused of illegally withholding overtime pay from some technical support employees that were eligible for the overtime pay. IBM settled the case for $65 million dollars in 2006, but now they figured out in their infinite wisdom that they need to reclassify over 7,600 of their employees as eligible for overtime.

The catch is that once these employees are reclassified, IBM will cut the base salary that they pay these employees by 15% for the first 40 hours to compensate for the overtime they will have to legally pay now.

It certainly does not take a rocket scientist to figure out that the reclassified employees are going to lose money on the deal, and while IBM is going to offer a “transition payment” to affected workers, that will not make up for the money that they will lose in the long term.

The bottom line is that IBM is trying to cut costs, and is telling workers that this is necessary to remain competitive within the industry. Employees are expecting their hours to be cut under this new plan. It never surprises us how companies that are making money will find new and creative ways to make their employees unhappy, just to make an extra buck.

Read more here.

Last modified on Thursday, 24 January 2008 09:12

David Stellmack

E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
blog comments powered by Disqus

 

Facebook activity

Latest Commented Articles

Recent Comments