https://www.theregister.com/2022/02/15/ibm_age_discrimination/
More disclosures.
"Jorgen Lohnn worked for IBM for approximately 15 years until his layoff in 2016 at the age of 57," the initial complaint says. "He worked for IBM as a Client Executive for Sales and Distribution. He committed su----e after his layoff from IBM."
I reinstated pensions again around 2001-2003. So it's a mixed bag.
What is 'Fishbowl' ? (Speaking as an IBMer who has never heard of it)
defined benefit plans eventually became very expensive between ERISA which passed in 1974
It's not that ERISA made pension plans more expensive, it made it harder for companies to underfund them or to raid the fund for other purposes. Once the law forbade stealing workers' retirements, companies lost interest in having them.
@dlj+1fjFB7ZD Excellent reply to my post. Thanks for taking the time to explain the pension landscape.
"IBM could spend some bucks to get rid of older employees by offering a decent retirement package. Problem solved. Young g-ns take over, the natural progression of life. Hundreds would voluntarily retire. "
Pension plans were originally used as an enticement to join a company. They were first used by the government to encourage people to join the military way back (and still are with a nice benefit). They became widely popular in the private sector after WW2 as a tax deductible end run around wage controls as a way to compete in a tight labor market.
However, a widely known benefit to the company was definitely a humane way to set an "end date" for older workers to retire and open up positions. Employees were happy, but defined benefit plans eventually became very expensive between ERISA which passed in 1974 and an aging workforce in companies with lower turnover.
IBM got rid of its pension in 1999. It turns out, apparently, it's much less expensive to tell someone 50+ not to let the door hit them on the way out. That includes the measly separation payment and lawsuit settlements. It's not the same as Ford running the numbers on the Pinto and determining it was financially better to let people die a fiery death and survivors' lawsuits vs. fixing the problem. But every MBA learns that financial analysis and I'm sure it's been run many times at IBM.
IBM could spend some bucks to get rid of older employees by offering a decent retirement package. Problem solved. Young g-ns take over, the natural progression of life. Hundreds would voluntarily retire.
As it is now, retirement (a.k.a. quitting) you get one month’s salary, 750 Blue Points. So why sign up for that? Bar set very low.
@upa+1fjFB7ZD - EO 11246 doesn't say anything about age, does it?
But the Age Discrimination in Employment Act certainly does.
https://www.eeoc.gov/age-discrimination
Every large company is pulling the “young professional” HR and hiring card.
They hand em titles and big paychecks. Then do what they can to bout and hit the smart educated and well rounded workers who know the business out. It’s sickening. Not just IBM.
A choreographed show. Exploiting many
"United States' Executive Order 11246 "prohibits federal contractors from discriminating on the basis of race, color, religion, s-x, se-ual orientation, gender identity, or national origin." So a conviction could put IBM's government deals in jeopardy."