CHINA TOPIX

11/02/2024 01:35:21 pm

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Lenovo to Absorb IBM Striking Employees

Lenovo-IBM Shenzhen Factory Strike

(Photo : Weibo)

Chinese PC maker Lenovo vows to take in all employees that worked at IBM's x86 server unit, including those that went on strike at a factory in Shenzhen, China.

The statement, issued Tuesday, finally broke Lenovo's silence over a labor strike that had crippled operations at the Shenzhen factory for the ninth straight day.

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"We will take in all employees from IBM's x86 server unit and be fair in our arrangements. We guarantee that their pay and benefits will not be lower than before," the Lenovo statement said.

Lenovo also promised to give equal opportunities to the striking workers as soon as the transaction with IBM is completed later this year.

The striking workers, numbering more than 1,000 were protesting the terms of their transfer to Lenovo, which bought IBM's x-86 server business for US$2.3 billion in January.

Under the deal, IBM said its approximately 7,500 employees around the world, including those based in Shanghai, Shenzhen and Taipei, would be offered employment by Lenovo. 

The demonstrators, employed in the manufacturing, research, sales and marketing departments in Shenzhen, claimed that those who opted to leave the company were not offered a fair separation package. 

The workers had asked for higher pay if they chose to continue working for Lenovo, or higher separation pay if they chose to leave.

On Monday, IBM fired 20 striking employees for shutting down production at the Shenzhen plant, according to Wen Yong, who is one of those whose contracts were terminated.

The strike, however, has been losing steam as the number of active protesters went down to just about 100 people.

One third of the original 1,000 protesters have signed up to become Lenovo employees.

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