January 8, 2015

IBM Corporation last October announced that it has budgeted 600 million U.S. dollars to reduce its global workforce. Employees in Japan feared the possibility of 1,000-payroll cuts by the end of 2014.

A union in IBM Japan revealed its strength in resisting possible mass layoffs. After the staff-cuts announcement, the IBM Japan branch of the All-Japan Metal and Information Machinery Workers’ Union (JMIU) called for actions against personnel downsizing. On October 16, about 800 workers held a rally in Tokyo in support of workers in IBM Japan. On December 3, some 400 workers rallied in front of the IBM Japan headquarters in opposition to the payroll cuts. The next day, a group of workers who support the Japanese Communist Party took a similar action outside the headquarters.

The court of appeal at Versailles in France in December annulled the cutback plan implemented by IBM France. This decision greatly encouraged the Japanese struggle. The JMIU negotiated with IBM Japan and succeeded in blocking the year-end dismissal.

IBM Japan imposes 10%-15% wage cuts on employees whose job performances are rated low, while the Labor Standards Act allows a reduction of up to 10% even for disciplinary punishment. IBM Japan uses low work evaluations as a tool to push voluntary departures. The computer giant assigns a quota, in the name of a performance improvement program which is very difficult to accurately assess, to anyone who rejects early retirement, apparently to label them as poor business performers.

Since July 2012, IBM Japan has targeted unionized workers for termination. At present, eleven JMIU members in IBM Japan are fighting in court, demanding a retraction of their dismissals. Their court struggle is making steady progress: Sam Ladah, a board member of the company who is in charge of personnel administration, was summoned as a witness to court.

Under such circumstances, workers who rejected forcible retirement joined the union. Oka Yoshihisa, leader of the IBM Japan branch of the JMIU, said, “Our negotiation with management at the end of last year was a great success, but the company will probably push for wage cuts again in April. We’ll continue fighting against the company’s ruthless tactics.”