Germany: IBM introduces a new “global” pay system in exchange for a disputed wage agreement

At the end of September 2007, the Verdi union got a 4% wage increase for IBM Germany's employees. In exchange, the services sector union stopped opposing the introduction of a new pay system based on principles of "market-based adjustment", "Personal Business Commitment" and "global skill pools". (Ref. 080009)
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“After savings, layoffs and capacity reductions, we finally managed to reverse previous years’ trend for IBM’s employees in Germany”, recently declared Rolf Schmidt, union (Verdi) negotiator of the wage agreement signed at the end of September with IBM Germany. Indeed, after several difficult years, IBM Deutschland’ situation appears to be stable now. The hardships encountered by its main competitor, T-Systems (Deutsche Telekom) or even its huge contract signed with Siemens Business Systems to

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