Business / Gadgets

IBM fires 19 in labor dispute

By Chen Hong in Shenzhen (chinadaily.com.cn) Updated: 2014-03-10 22:03

Apart from the dissatisfaction about the severance packages, many of the strikers expressed anger about what they said was the company's rude and abrupt decision to proceed without seeking their input, forcing them to make a life-changing choice on short notice.

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"I have been working for the factory for 20 years and felt it's a part of my life. But obviously the company doesn't think the same way," said Hou Hongbo.

The district government, local human resources managers and trade unions are working hard to mediate between the IBM management and the workers, said Wen Xianqing, a press official at Futian district government.

One official, who asked not to be identified, said IBM was too rough in its handling of the workers, though its actions are legal.

"The company is backed by a powerful legal team, so its move is in line with Chinese laws, but the decision is merciless to the workers," the official said.

Lawyer Li Jianyong called the workers "unreasonably troublesome", and said they would hurt the healthy development of the companies.

"IBM is offering much more than what the law requires to the workers. They have no reason to strike and suspend production," he said.

In January, Lenovo, the world's biggest producer of personal computers, said it would buy IBM's x86 server unit for $2.3 billion. The deal is expected to close in the fourth quarter of 2014, according to Lenovo Chief Financial Officer Wong Wai-ming.