IBM New Zealand redundancies – they are not rumours.
IBM New Zealand has refused to comment on rumours it is making 34 staff redundant in Wellington and merging its northern and southern region sales teams.
Spokeswoman Courtney Allen said IBM “continuously re-balances skills and capabilities to meet the changing needs of clients. While many of our competitors were contracting in response to the global financial crisis, we hired consistently throughout last year with over 80 appointments,” she said.
The leadership team was continually changing to meet the needs of clients and business, Ms Allen said. “This is business as usual for IBM.”
The subsidiary employs about 1000 staff. It last reported a reduced profit of $13.7 million on sales of $391.4m in 2008.
IBM’s United States parent this week cut nearly 1000 jobs from its worldwide work force of 400,000. The New Zealand subsidiary of its biggest global rival, Hewlett-Packard, this week reported a $8.9m loss and a 10.5 per cent drop in sales.
Dismissing the crap from the spokesman as absolute BS, which is what it is, I can confirm that IBM have made 30+ people redundant, with almost no notice and an appalling lack of anything approaching the legal standards for doing so.
Hubby is one of those people.
They were told on Wednesday (the same day believe it or not that we got confirmation of my brother’s residency), and were given till just Monday as a “consultation period”. Although there is no statutory legal minimum period that employers need to give for this “consultation” – 1 week is the standard that has been formed by case law. 3 days is unreasonable, and is grounds for seeking a Personal Grievance.
I cant say too much, as oddly enough, hubby is one of several people it seems who are doing just that. Its been a hatchet job: badly handled by people who really shouldn’t be allowed to keep their jobs, and basically its one almighty cock-up.
We understand that this has been done so quickly to keep the news out of the paper. So glad that didn’t work (and no – it was NOT me that told the Dom Post!)
And this isn’t business as usual for IBM. IBM New Zealand operates in a world of its own, and one that is frankly an embarrassment to the rest of IBM, if it was actually important enough for the rest of IBM to care what was going on down here. IBM as a company has always been clear that technical staff are not treated as lower class workers than management. If you are a technical specialist, which lets face it – IBM does kinda rely on – you can rise in the company as far as your skills will take you. Not so in New Zealand, where managers get easily offended at technical staff getting paid more then them, and and are not above lying through their back teeth to cover up their own lack of effort and skill.
THAT is what is “Business as usual” in IBM New Zealand. We have seen so many people shoved out in the last year or so because a manager didn’t like them: their “face doesn’t fit”. Hubby himself got a bad personal review last month for no other reason than a manager of his was upset over his high salary, and the fact the he wanted a pay rise.
All in all its a shambles. IBM NZ has been becoming more and more toxic as a workplace, and to be honest we knew it was only a matter for time before something like this happened.
Its things like this that mean so many people leave New Zealand. Working for people who just don’t know what they are doing can be very depressing. While there is a huge amount to come to New Zealand for, screwing up what was a brilliant career really wasn’t the plan, and should not be a cost of emigrating here.
So, now what do we do?
Well, not much really. We have an emergency fund which will cover 2 months worth of bills and living expenses, on top of another months pay and nearly 2 months pay in redundancy (at a reduced payment because IBM is not being exactly fair and honest about hubbies salary. Again.)
I cant stress enough the need to make sure you have these funds behind you, especially if you are taking high paid work in New Zealand. Tall Poppy Syndrome is a huge problem here, and if you are good at your job, and/or get paid a lot of money, there are some very short poppies here who will do their best to get rid of you.
We are far from the only ones that have been affected by this: its actually fairly standard. And certainly in high paid IT circles – it seems to be pretty much the only way to get a pay rise. So be prepared. Then if or when it happens, you have the distinct pleasure of being able to sit back and not in any way beg for a job from the people who just shat all over you.
Trust me – that is a nice feeling!
So, hubby has already started the process of having endless coffee meetings, phone calls and interviews. No point in waiting around! Oddly enough although IBM NZ claims it doesn’t need hubby any longer – they still expect him to work out his notice. Again, very different from IBM UK who have the sense to get disgruntled staff off the premises pronto.
And we wait for the lawyers to do their thing.
If you happen to be affected by this – we recommend an employment lawyer in Lower Hutt: Mike Gould at Gibson Sheat. He’s not cheap, but he’s good, and it really is worth every cent if like in this case your employer has not followed the expected process or has bullied you in any way. You are entitled to seek legal advice if you are being made redundant, and if anyone in management claims you are making a threat by saying you will be seeking legal advise, please make sure you tell your lawyer this. If you really cannot afford a private lawyer, don’t forget Citizens advice, who can offer you information for free.
BTW – while NZ staff were given three days “consultation”, UK Staff were given 90 days. Says it all about how New Zealand companies are run.
Mike Gould: Gibson Sheat:
04 569 4873
mike.gould@gibsonsheat.com
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Comments
13 Comments on IBM New Zealand redundancies – they are not rumours.
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scott on
Wed, 3rd Mar 2010 10:07 pm
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Avalon on
Wed, 3rd Mar 2010 10:12 pm
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Sophie on
Wed, 3rd Mar 2010 11:06 pm
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Deborah on
Thu, 4th Mar 2010 11:28 am
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Avalon on
Thu, 4th Mar 2010 12:28 pm
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Avalon on
Thu, 4th Mar 2010 12:34 pm
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Avalon on
Thu, 4th Mar 2010 12:37 pm
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Chris on
Fri, 5th Mar 2010 3:29 am
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Avalon on
Fri, 5th Mar 2010 11:22 am
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Sophie on
Fri, 5th Mar 2010 10:40 pm
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Avalon on
Fri, 5th Mar 2010 10:47 pm
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Jeremy Blandford on
Sun, 7th Mar 2010 12:21 am
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Avalon on
Sun, 7th Mar 2010 3:59 pm
What’s hubbies IT area, My company have won a couple of big contracts and are looking to take good people on desperately. email me, if interested.
Wow, thanks Scott. Hes in IT Security. He’s emailing you very soon 
Good luck, Avalon’s hubby!
My hubby wasn’t made redundant by IBM, but Siemens in the UK. I can definitely confirm that the 90-day consultation helped all those affected at his branch (200+, most of whom had the option to move from Dorset to Yorkshire if so wished) bring a coordinated approach to the redundancies though.
He was informed about the redundancies in June 09. Consultation with 3 employee reps started immediately, who negotiated an awesome package even for hubby (who’d only started working there in Sep 08). In Sep 09 he was told he was part of the first round of redundancies, affective Dec 09. He was expected to work those 3 months, however they also compensated everyone with an extra 3 months’ salary. Fantastic for us, as he was entitled to very little otherwise.
Siemens aren’t complete angels though. Higher management were already talking about closing that branch 2 months before he was hired – discovered by the employee reps during consultation. That part still pisses me off.
IBM NZ need a kick up the backside.
Oh crap, sorry to hear this!
We used Mike at Gibson Sheat when G had the problem with the bank. At the disputes tribunal we were awarded much, much more than the cost of Gibson Sheats bill, so hang in there.
Good Luck Avalon’s Hubby.
Cheers Deb
We used Mike when he went through this at Unisys. However Unisys played by the rules, but were decent enough to cover the legal fees – and hubby was the only person to get a “bonus” that year 
Mostly because of that – we now know the rules – and we now what is supposed to happen.
Sophie – couldn’t agree more. I was shocked at what happened and how it was handled. IBM UK would just have more sense than to mess something like this up. But then Hubby was actually valued at IBM UK here he is just seen as an expense, rather than anyone having the nouse to wonder WHY he is worth that much money and let him do what he is good at. Hes made a lot of money from the company – but at the end of the day – its worth diddly squat to some people.
Here the “employee reps” from experience are a waste of space, and are just hired to make the company look a wee bit less weasly. But they sure as hell wont do a damn thing to help the employee. In the same way that HR departments here are not there to support the staff, but act solely as the stick that management hit you with.
Employees have very few rights in New Zealand. Which makes it all the more strange that IBM NZ have so badly messed this up.
ALso – just wanted to say a HUGE thank you too the people like Scott above who have contacted myself or hubby to set up some interviews
Sorry to hear about hubbies redundancy ……. I got made redundant by Siemens (UK) in September last year (and as I’d only been there 18 months I got a months notice and a months pay); its not a nice situation to be in but it gets better!
I also had the rather strange discussion about ‘well if you’re making me redundant then I’m not needed so why do I need to work my notice?’ ….. it just reinforced my view of HR managers
Chris – I hear ya! Ive never had to deal with HR departments, as I worked as a pharmacist, so I tended to work for s,all independent companies. But my experience of corporate HR through Hubby and IBM UK was they they actually did work FOR the employee, and put a stop to some of the more outrageous management bullying.
Here in NZ, through three companies – i personally believe the entire HR departments should be sacked for gross incompetence and because they are basically a huge waste of time, money and oxygen. Its scary how they can get paid a wage ofr being so bad at their jobs.
But as you say – it does get better.
Hubby has been signed off sick today – so if IBM thinks hes working his notice – they are dreaming. This on top of the stress we have been under with immigration is just too much. If IBM wont act with some decency and common sense – thankfully our doctor will.
Sorry to create a conversation within a conversation, but but Chris: seriously? That’s just rubbish 
I know Siemens is a huge international juggernaut, but you’d think they’d be a bit more consistent in their redundancy practices (see my comment up there about when my hubby was made redundant – he was with Siemans VAI UK).
Sophie, Im not sure where Chris is from – but it is entirely possible that if he was in a different country it would indeed be completely different. IBM UK behaves entirely differently to IBM NZ. They are essentially very different countries with completely different cultures.
We have seen some behavior here, not just in IBM, but in Unisys and Telecom that just wouldn’t wash in the UK.
Its one of the reasons i think it was important to blog about what was happening to Hubby – because when you are employed by an NZ company, you have a lot less rights than you might expect.
As you say – its rubbish!
BTW – you are more than welcome to have a conversation
YES I have also been in this positiion .. and not with a multi-national BUT with a NZ Government agency … one of the supposedly most respected or so I thought before my personal experience … and YES can recommend a good lawyer … excellent … especially considering a settlement that included paying legal fees as a result of the “meditation!” process.
A good business friend of mine has a very pertinent saying about such behaviours… ” it is fascinating how people behave when the tide is out”
Jeremy -
So sorry to hear that – especially given that I too would have expected government departments to have handled this correctly. I guess I shouldn’t be – but i AM shocked by that.
We are also seeing a mix of behaviors, both in the people losing their jobs, and the people doing the firing.
I feel for anyone going through this. We are so far weathering it quite well, mostly because we saw it coming. But even with that – hubby was still horrified and upset by the way he was treated and the way it was done. I wouldnt wish that anyone (except maybe the people dishing it out right now – I believe Karma should pay them a visit – soon).
I really hope you got a new job soon
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