Industry Bits

Bytes from System iNEWS editors

June 18, 2009

Rochester Newspaper Reports IBM Layoffs

The Post-Bulletin in Rochester, Minn., reported Wednesday that at least 68 IBM employees were laid off earlier this year from the Rochester facility where IBM i technologies originate.

The newspaper quoted an official with Rochester's Workforce Development office, who said that 68 people attended a meeting at IBM that was held by the office's Rapid Response team. Those 68 workers were helped in May by monies from the state of Minnesota that were earmarked for education and training. That money will now be covered by a $4.8 million National Emergency Grant from the U.S. Department of Labor.

Of course, we still don't know exactly what it means since the Rochester plant manufactures both IBM i and AIX-based Power Systems; but this reporter has heard suggestions through more than one grapevine that IBM was likely to let go of those employees who favored working on one platform rather than branching out to a more Power Systems-friendly workload.

Still, anyone who did get laid off probably got a pretty darn good assistance package from IBM, as Chris Maxcer reported. And now federal grant money is available for education and training assistance to laid off workers.

We've discussed possible layoffs at IBM in past posts.

--Rita-Lyn Sanders, Senior Industry Editor

Posted by rsanders at June 18, 2009 2:40 PM

Comments

What exactly are these people going to be trained for? Greeters at Wal-Mart? Aren’t these people already in high tech jobs? It’s unfortunate that all of the high tech jobs are being replaced with low tech jobs.

Posted by: Corey Hudson at June 24, 2009 12:15 PM

"Were global now, we have to compete, Im sure you can understand why. Our bottom line looks pretty good, if we leave this country, behind." - Mad in America.

http://www.youtube.com/watch?v=QwPAcDC2AMc

Posted by: Madia at June 24, 2009 12:19 PM

It will take a devastating shock to smarten us up, but when we come to our senses and quit trading with countries that aren't trading, we will need a massive amount of manufacturing blue collar and high tech jobs.

Just waiting for that devastating shock. Won't be pretty.

rd

Posted by: ralphdaugherty at June 24, 2009 4:19 PM

"68 people attended a meeting at IBM that was held by the office's Rapid Response team. Those 68 workers were helped in May by monies from the state of Minnesota...."

Okay, so has anyone ever pinned down a number of layoffs in Rochester? This article referes to only 68 workers. Of course those are only the ones who "...attended a meeting at IBM...." But if only 68 people find it necessary to seek assistance from the Workforce Development office, are we making too big a deal over this?

I hear a lot of complaining that IBM isn't being fair. However, they at least provided the location for this meeting and, as other articles point out, they're providing a lot of resources to those affected-- up to half-a-year of severance, e-mail, printers, career counseling, continued subsidy of medical and life insurance, expense reimbursement for retraining, etc. All this on top of the assistance provided by "monies from the state of Minnesota" and now a $4.8 million grant from the U.S. Department of labor.

To those affected, it still can seem devastating. But the real question isn't what appears fair or ideal--rather has IBM upheld contractual agreements with its workforce? I haven't heard of anyone complaining that IBM has broken or altered contracts in this current round of layoffs/resource actions/whatever you want to call it.

As for me, I'm grateful for the system IBM has produced which has provided my career a time-span longer than I care to admit.

Posted by: Michael at June 24, 2009 6:51 PM

and I'm grateful for the people who got laid off who are the IBM that made that system what it is.

I don't think it's an accident that we got such a great system out of the Minnesota area. The people in Armonk and Somers can't hold a candle to them.

rd

Posted by: ralphdaugherty at June 24, 2009 9:02 PM

Is none of you afraid that this might mean a deterioration of i quality?

Posted by: Armin Kuner at June 26, 2009 12:32 AM

What's there is there. The quality is already built in. It isn't going anywhere.

I'd be concerned if new development could have quality problems, but the hardware/software is built out there quite a bit, and it will be awhile before it becomes mainstream.

We have a long way to go to tap all the capabilities of the iseries and push the edges of it.

rd

Posted by: ralphdaugherty at July 1, 2009 4:23 PM

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