Dissatisfaction with IBM's pay flexibility policy

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IBM employees in Belgium have been working under a system of flexibility and partial pay "individualisation" since 1994. However, in January 1999 the CNE-LBC trade union and workplace union representatives challenged the way in which the compensatory bonus scheme based on company results and individual employees' performances is calculated.

A group of trade unionists blocked the entrances of the Brussels headquarters of IBM, the US-based computer multinational, for a few hours on 22 January 1999. IBM currently employs 2,400 people in Belgium. The protesters were from the National Federation of White-Collar Workers (Centrale Nationale des Employés/Landelijke Bedienden Central, CNE/LBC) - affiliated to the Confederation of Christian Trade Unions (Confédération des Syndicats Chrétiens/Algemeen Christelijk Vakverbond, CSC/ACV) - and were backed by employees from various other companies in Belgium's computer sector. Discontent amongst IBM employees has resulted from the company's "variable pay" scheme, a system that introduces flexibility and "individualisation" into part of employees' pay. In 1994, employees agreed to a cut of between 2% and 10% in pay, which was to be compensated for by an annual bonus based on company results and individual performance.

The terms under which this bonus is granted are now being called into question. Instead of taking into account the results of the Brussels plant alone, those of all the IBM group's undertakings in Belgium will be included in the calculations. In addition, the criteria defining the targets to be met by individual employees are set unilaterally by management and are considered to be unclear. On 20 January 1999, four employees brought a case to the court dealing with labour disputes (Tribunal du Travail) on the grounds that the terms of their employment contracts had been changed unilaterally.

Industrial relations then deteriorated following the protest action. Management made clear its refusal to negotiate with union officials. A letter was sent to four staff members acting as union representatives, warning them against "any reprehensible behaviour" that the company might consider as "insubordination, with inevitable consequences for labour relations". IBM added that it would hold the representatives "personally responsible for adverse effects on the company, particularly in terms of trade".

According to a report in the Le Soir newspaper on 23-24 January, the Fabrimetal employers' federation - which represents companies in metal, electrical and electronic manufacturing - stated that pay levels in the computer industry were high and doubted whether employees would support the unions. It is not known if negotiations will be held in the IBM works council.

Industrial action is uncommon in the computer sector, although disquiet was noted recently following the merger between Digital and Compaq. CNE-LBC has expressed fears that developments at IBM might serve as a pilot scheme for the "flexibilisation" of salaries elsewhere in Belgium.