"IBMers will also receive a one-time salary increase to offset the difference between the IBM contributions they are currently eligible to receive in the 401(k) Plan and the new 5% RBA pay credit. "
Did the salary increase happen so more money can go into employees' RBA accounts right from the beginning of the year? How much is the increase?
Also, is there some fine print that would allow IBM to get out of paying the accumulated RBA funds in case the company bankrupts or is sold etc.?
Just another shiny ball to distract from the backdooring they are giving us
The one time salary increase is great for the higher incomes and worse for the lower income:
Here an example:
High income employee (VP ..)
1 Million income, 6% 401K match but it maxes out at 22500 K. Therfore it having 5% or 6% did not make any difference as maxed out. But the salary increase of 6%- 5%= 1% gives extra $10 000 income.
Lower income
100 K income. 5% match = max 5K match. The one 1% salary increase sounds good. But then next time, IBM does not have the money for annla salary increases. furthermore money is just getting treasury interest rate!
This plan was made for the Excecutives. Therefore they could also explain how great it is. It is great for the people who maxed out before!!! P.S. I am not one of them
It will be more of a reveal than a figuring out. They designed this plan so you can be sure the loophole is already in place. We are ones who just haven't figured it out yet.
Theyll figure out some loophole to keep from paying it out. $crewing over their employees is the only area IBM pioneers in anymore.
Customers already complain about services/delivery. One example, customers in Saudi Arabia hate IBM services delivered from India. The Saudis expect top services at all times, they are not getting that from IBM India.
Bankruptcy is not even on the radar given IBM’s FCF of 10.5 billion. Offshoring of USA and Northern European workers is a near certainty as IBM continues to transform into a services organization. What’s the major cost of a services organization? Yep labor. What’s labor cost in India vs the USA? Yep 33 cents on the dollar. So what’s your strategy if you are the CFO? Yep move to where it’s cheaper. Cost take out will continue until customers complain about their support/service delivery. So far that has not happened and legacy continues to move. Thank the internet as it’s the great equalizer when it comes to service delivery.
And when they file for bankruptcy it will all disappear
I got my increase starting 1/1 as expected. It just not like the 401k match because you have to pay FICA, Fed tax and State tax depending on the state you live in. So, essentially we are getting sc--wed... but that is the idea from an IBM standpoint, right?
1% increase to offset the loss of the automatic 1% 401k match. Happened 1/1.