Welcome to the Global Economy: Chinese IBM Factory Workers Strike to Protest Sale to... Lenovo

They may be running dogs of capitalist imperialism but they pay pretty well.

IBM recently announced the sale of its server business to Lenovo, the Chinese company that purchased IBM's PC division. Lenovo has, by all accounts, done a creditable job of sustaining and even extending the ThinkPad brand, despite concerns at the time of the sale that it was doomed.

The delicious irony here is that the Chinese workers are protesting the transfer of their employment from a US company to a Chinese one. Their concern is that layoffs will ensue for many and that for those who remain, pay and working conditions will deteriorate.

The reality of the global economy is both that tangible assets like factories and their workers are fungible: they can be traded, sold or exchanged - and that those affected by these decisions have the information available to understand the implications. They are also becoming sophisticated enough in the ways of media and messaging that they freely utilize various channels and platforms to effectively leverage their position.

The issue is that enterprises of whatever ostensible nationality are going to have to be cognizant of global norms, especially in fields like tech if they want to establish and sustain their competitive position. JL

PC World reports:

Employees suspect layoffs could come. This happened once before, almost 10 years ago, when Lenovo acquired IBM’s ThinkPad PC business.

Not all are fans of Lenovo’s recent plan to buy IBM’s x86 server business. Close to 1,000 workers at an IBM factory in China have been protesting the proposed acquisition, fearing they may lose their jobs if the deal goes through.
IBM’s x86 server factory in Shenzhen, China stopped production after most of its workers went on strike. Photos and video of the demonstrations have go online, showing the employees holding up banners stating, “workers are not property, nor slaves, please don’t sell us.”
The factory has about 1,200 employees, and many of them have been at the facility for years, according to one worker, surnamed Zhang. Over 500 employees have worked there for over five years, and some have even been at the plant for over a decade, he said in a Thursday interview.
But the factory’s output has been dropping: In January it phased out production of its higher-end servers. Employees suspect layoffs could come. This happened once before, almost 10 years ago, when Lenovo acquired IBM’s ThinkPad PC business.
“When the PC business was bought, the other workers that were once at our side are all now pretty much gone,” said Zhang, who has been at the factory for over 7 years. “Now there’s no one.”
If the deal is completed, the factory will become a subsidiary owned by Lenovo, IBM said on Thursday. The workers can choose to either remain employed at the factory earning a comparable wage, or decide to resign and take a severance package.
“While it is entirely an individual’s choice, we are hoping employees will decide to remain with [the factory],” the company said in a statement.
The workers, however, continue to strike. They demand better terms and higher compensation, citing their long years at the facility. Some workers also want health checks, after pulling long hours at the facility.
When first starting at his job, Zhang often worked seven days a week, 15 hours each day, he said. But now he works eight to 10 hours each day, he added.
The employees also wish to know Lenovo’s plans for the facility, but so far the Chinese PC maker has declined to comment.