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IBM Luxembourg plans to cut around 10% of staff, letting go 38 people out of 313 employees. Photo: Shutterstock 

IBM in March had announced the layoffs, reducing its staff of 313 employees to cut costs.

“From the start of the negotiations, the management refused any notion of a job retention plan as well as any voluntary measures (voluntary departure plan, pre-retirement adjustment),” the LCGB said in a statement on 31 March.

Compensation payments proposed by the company are insufficient, the union said, claiming the company had intimidated staff taking part in a staff delegation meeting on 23 March to discuss how to proceed in the negotiations.

The national conciliation office (ONC) has been called on to mediate between both sides. A first meeting is scheduled for 2 April.

The LCGB from the outset had criticised IBM’s decision to cut staff, saying the company isn’t in financial difficulty and is merely aiming to improve its net results by reducing headcount.

IBM reported revenue of $73.6bn for 2020, down from $77.1bn the year before.

“This is a restructuring programme decided by IBM at the global level, above all motivated by the frantic search for profit to the detriment of and without regard for employees,” the LCGB said.