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Second, it misjudged its employees’ reaction to switching to a kind of pension that no longer rewarded older, long-service workers.IBM workers responded with a lawsuit that forced the company to settle by paying more than 0 million and reinstating expensive traditional pensions for more than 100,000 of them.
“CAMS are driven by Millennial Traits,” declared a slide presentation for an invitation-only IBM event in New York in December 2014.
Its profits helped underwrite a broad agenda of racial equality, equal pay for women and an unbeatable offer of great wages and something close to lifetime employment, all in return for unswerving loyalty. The company reacted with a strategy that, in the words of one confidential planning document, would “correct seniority mix.” It slashed IBM’s U. workforce by as much as three-quarters from its 1980s peak, replacing a substantial share with younger, less-experienced and lower-paid workers and sending many positions overseas. In making these cuts, IBM has flouted or outflanked U. laws and regulations intended to protect later-career workers from age discrimination, according to a Pro Publica review of internal company documents, legal filings and public records, as well as information provided via interviews and questionnaires filled out by more than 1,000 former IBM employees.
IBM spokesman Edward Barbini said that to respond the company needed to see copies of all documents cited in the story, a request Pro Publica could not fulfill without breaking faith with its sources.
And by the early years of the new century, IBM was falling behind again by failing to quickly devise innovative uses for the internet like its new rivals, Google, Facebook and Amazon.
As it slipped, the company began having second thoughts about the price of unbending loyalty to its long-serving workforce.