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News and Opinion Concerning Health Savings Accounts, Medical Costs and Health Care Reform

• CBS News: When Health Coverage Doesn't Hold Up. CBS News Investigates How Individual Health Insurance Providers Can Deny Big Claims. Excerpts: A two-month CBS News investigation of the individual insurance market found that Smith's experience was far from unique. Because it was expensive, his claim was investigated for fraud by Assurant Health, his insurance company. After examining his medical records, the company refused to pay based on a 3-year old-reference to an "angina episode." Assurant said those words proved his condition was pre-existing, despite the fact that follow-up tests in the same file diagnose his "episode" as a case of acid reflux and ruled out a heart condition.

  "The claim about these pre-existing conditions was absolutely preposterous," Connecticut Attorney General Richard Blumenthal said. [...]

  "What this company did was create the illusion of coverage, when in reality, it would challenge almost any expensive procedure as a pre-existing condition," he said. CBS' investigation of Assurant found a pattern of questionably denied claims and cancelled policies — and what a South Carolina judge called a culture of "secrecy, concealment … and shredded documents."

• BlueCross/BlueShield Association: A healthcare idea's second life. By Ronald Brownstein. Excerpts: SOONER OR LATER, the political argument about expanding access to healthcare always returns to the same intractable question: Who pays the bill? The healthcare proposal that Democratic presidential hopeful Barack Obama released Tuesday, though vague on many details, will sharpen that debate in illuminating ways.
• New York Times: The Obama Health Plan. By Atul Gawande. Excerpts: As a surgeon, I’ve worked with the veterans’ health system, Medicare, Medicaid and private insurance companies. I’ve seen health care in Canada, Britain, Switzerland and the Netherlands. And I was in the Clinton administration when our plan for universal coverage failed. So, with a new health reform debate under way, what I want to tell you in my last guest column is this:

  First, there is not a place in this world that is not struggling to control health costs while providing high-quality, easily accessible care. No one — no one — has a great solution.

  But second, whether as a doctor or as a citizen, I would take almost any system — from Medicare-for-all to a private insurance voucher system — over the one we now have. Job-based insurance is bleeding away the viability of American businesses — even doctors complain about the cost of insuring employees. And it has left large numbers of patients without adequate coverage when they need it. In the last two years, for example, 51 percent of Americans surveyed did not fill a prescription or visit a doctor for a known medical issue because of cost.

• The Huffington Post: How the "New Naders" and the Right Could Kill Health Reform. By R.J. Eskow. Excerpts: The three leading Democratic candidates for president have now offered some information on how they would change our broken health system, and their plans are alike in many ways. There's some consensus on the issue at the top, so there's bound to be some substantive reform after the 2008 election, right? Not necessarily. Between the New Naders on the left and the snipers on the right, reform will be imperiled even if Democrats sweep the 2008 elections. [...[

  The candidates' plans aren't ideal, even from my perspective, but each would be a significant improvement over today's situation. Sen. Clinton's Best Practices Institute could save lives and money. Better technology could save lives and reduce cost while making the experience of being a patient more bearable. America's children would be fully insured and more Americans would have coverage under each of these plans. [...]

  Here's how health reform could die: The Republican presidential candidates have remained silent on the topic for the most part. Come election season, the Democrats will have offered detailed plans that the GOP can then fire shots at each proposal in a leisurely manner. (They, of course, will offer no competing plans of their own. That gives them the luxury of criticizing the solution without addressing the problem.) Meanwhile the New Naders will be blasting the same plans from the right, which could rob them of much-needed support from the Democratic base.

  Two possible scenarios could result: In the first scenario GOP campaign donors, 527s, and insurance companies, coordinate a campaign that paints the Democratic nominee's plan a disaster for small employers, the self-employed, and the middle class. Outcome: The Democrats lose the White House and suffer setbacks in Congress.

• Wall Street Journal: Why Health Care No Longer Makes Politicians Leery. Shift in Public Attitudes Since '94 Clinton Fiasco Emboldens Candidates. By Jackie Calmes. Excerpts: During the 13 years since President Bill Clinton lost his bid to remake the U.S. health-care system, and helped cost his party control of Congress in the bargain, politicians have shied from changing it more than one step at a time even as costs and the ranks of uninsured have ballooned.

  Now, the growing list of Democratic presidential candidates calling for universal, cheaper coverage -- Illinois Sen. Barack Obama yesterday became the latest -- suggests the days of health-care incrementalism are over. Nor are these Democrats alone in embracing the once-toxic political cause of universal care: The best-known state models have been championed by Republican governors, including Mitt Romney of Massachusetts, who is now running for president.

  This shift reflects rising and inflation-topping out-of-pocket costs for health care and insurance premiums, co-payments and deductibles. Also, the number of uninsured has spiked to about 45 million, from 37 million when Mr. Clinton was president. Business leaders increasingly are seeking a government-imposed solution, saying employee health costs put them at a disadvantage with foreign competitors.

  Those forces, in turn, have combined to embolden politicians in both parties to once again propose universal health care that inevitably would mean a big role for government -- and possibly upend the powerful insurance, medical and pharmaceutical industries.

• "Annual Increases" by "somesuch". Excerpts: It sure has been very quite about the annual increases. Has anyone heard anything? Will we be notified? When do they take effect? Supposedly there is very little money due to all the recent acquisitions. With record profits you would think the pig would share a few crumbs to the piglets.

New on the Alliance@IBM Site:

• From the Job Cuts Status & Comments page (Note: There were a massive number of posts to this page during the last week. The following is a sampling of the large list of posts received by the Alliance@IBM.)
  • Comment 05/27/07: To sore sphincter - I was RA's on Oct 25, 2006. I used Monster to find a job at EdwardJones. I had been looking since Oct. 2005. I had 6 interviews and no offers. After RA I had 2 interviews and was offered a Windows Admin onsite press the server button job. I was a Unix Admin. The whole thing was a joke. I turned it down and left in December. I gave a week notice and was asked why I didn't give more notice. I advised since I was an Admin I was not sure they would let me serve a full notice. The brought in Brazilians to train less than 2 weeks into my 90 day RA. They did not and do not know the systems. All poor planning. This was while LEAN determined that only 3 people were needed on our shift to monitor 10,000 servers. Typical crap. I am glad I left and am much happier. There is life after IBM and I had lots of phone interviews outside of IBM. Good luck and good hunting. -HappyinPhx-
  • Comment 05/28/07: If you are RA'ed a 2nd time after posting out I expect you are eligible for package. Just don't fall for the scam where your new manager says you should receive a 3 cause you are new. Many get suckered and think this sounds reasonable and set themselves for ISP with less or no severance instead of RA package six months down the road. Happened to someone I know -Anony-
  • Comment 05/28/07: I am just sick. Everyone of my friends has been RA-ed -including my manager. They were all good workers, no one was lax in any way. Thursday is their last day. Out of 10 folks who were my close friends at work only 1 has found another job in IBM. (And that was because they knew someone who knew the hiring mgr). Trying to find another job once you're RA-ed is like trying to find a needle in the haystack. -just-sick-
  • Comment 05/28/07: IBM is taking no prisoners this time around. They used to protect the folks in the management circle, but not anymore. If you're a mature employee over 50 and on the old pension plan - you are fair game for the ax this year. My manager is 52, and was RA-ed at the beginning of the month. He has been looking for another job inside IBM. As soon as he gets to the point where a new hiring manager is interested, there is a sudden 'lack' of interest, and the deal falls thru. I can only assume the hiring mgr has viewed his jacket and realized he is black-balled. Funny thing is, that this mgr has been a mgr for years, and has been part of the layoff fiascos of past years. Part of me is sad he is leaving as he was one of the better mgrs in IBM. The other part of me is gloating because now he knows what it is like to be on the receiving end of an RA. -once-me-once-again-
  • Comment 05/28/07: Looking for others who are in the throws of LEAN. Has anything good come from it yet? All I have seen is an increase in the workload. I used to work 50 - 60 hour workweeks, and now my work week is over 75 hours. At this point, I am looking forward to being layed off. How do others feel about LEAN? -middleware-LEANer-
  • Comment 05/28/07: I work in one of the groups that sets up userids for IGS on the e-biz customer servers. We just had a request for over 42 userid creation requests. GUESS WHAT? The userids are for a new DBA group in Brazil. HMM...any one want to guess which group is going to loose their jobs next. If you're a DBA - get your resume updated. QUICKLY. You're in the limelight now. -one of the sheep
  • Comment 05/28/07: I am a first line mgr, and basically I am fed up with the tactics this company employs to debase and demean the employee base. Folks, the rumors you are hearing are true. The times are altered as needed by mgmt, however the results will be the same. -1st line going thru hell-
  • Comment 05/28/07: 1st line mgrs should be delivering information on raises for the year soon. Very few folks are going to be rewarded for their hard work. The raises are going to be timed to soften the blows of the layoffs. Folks around the RA-ed won't care so much when they find out they're getting a .50 cent an hour increase. HA! -raises coming ~ NOT~-
  • Comment 05/28/07: I've landed myself another job. I can't take LEAN anymore. Save your dignity and get out before you loose all vestiges of your self respect. The offer I got is for one of IBM's competitors, and let me tell you how happy they were to hire me. I've received a 19% increase too ! Let me tell you one thing. I will be in a position to buy new hardware for this company, and I WILL NOT be promoting any of IBM's products. IBM YOU SUCK ! Watson is turning over in his grave at what you have done to this once magnificent company. -Riding into the Sunset-
  • Comment 05/28/07: I'm leaving on Thursday - been RA-ed. Tried to find something, but no luck. The best of luck to all the folks I've managed. Best wishes for a happy life and career, I will miss working with everyone. I'll stop by here every now and then to see what is going on. Until then, I will be trying to pick up the pieces and try to move on. -ex-manager in washington state-
  • Comment 05/29/07: It's been a long month, but in the end I've been hired on at a great company at a much better salary than IBM. To those laid off, I know it can seem desperate at first, but looking back I can honestly say I should have done this years ago. My advice would be to look for smaller companies as they tend to be more personable and caring about the individual. Leverage the skills you learned that you gained under pressure and duress at IBM towards your new company and I think they will be amazed at the results. Just think about how well you can do when applying yourself towards a company that cares about you. IBM will be a distant footnote before you know it. Good luck and hang in there. -Anonymous-
  • Comment 05/29/07: To WTF_? You cannot hide from this by taking 6 months off.. they are RA'ing folks on disability.. the kind family oriented IBM is gone.. stick a fork in it... As far as getting in the list.. the criteria before was that they usually hit the PBC 3 then 2's then 2+ then 1's.. I was a 1 and got tagged.. they are not going by the rating system.. its the ol' school system if you are connected... you'll be fine. Its actually nice to see management feeling the pain...they get to feel the stress we feel.

    Everyone needs to realize that if you are an IBM'er in North America.. you have a target on your back. Quality is not the answer anymore, if you work on an outsourcing contract, you know this all too well. IBM is over as far as the outsourcing (SO & ITD) goes...get prepared so when you are ra'd, you're expecting it, unlike me who wasn't.

    If you're prepared, it will be a nice reward as you will cash out versus leaving without getting paid. Make this work for you. Take the culture that WAS IBM to your new company, start it there. The best part is IBM is shooting itself in the foot. All of these folks that IBM is screwing over are going into roles with competitors and in position to cost IBM money...remember what they have done to you and your fellow ibm'er...always remember -Sore Sphincter-

  • Comment 05/29/07: RA's in the past would not net the number of FTE reductions needed, due to people finding jobs in other areas of the company. RA's became a big shell game of moving people around. Executive management caught on to this and at least when I was at IBM, managers needed 3 VP's signatures (HR, Finance, and Division) to hire someone who was on the RA list. It was a rare instance that a manager would go after the signatures needed to save an employee. Even when they did, the bureaucracy slowed things down to the point it was almost impossible to get it done within the 30 days that an employee had remaining. From my experience once you are on the RA list, your days are numbered at the company, which may not be a bad thing these days. -Moved On-
  • Comment 05/30/07: Well Folks, IBM Canada is about to get hit by the LEAN machine, a few reps in STG was told by their managers that they cannot afford to have so many headcounts at the same customer, so most likely they will be gone, after doing some research it’s seems at ever IBM account two thirds or maybe half of the employees will have to do the work while the rest will be cut... Will have to wait until after July to see how this LEAN phase is implemented… -Lionheart-
  • Comment 05/30/07: Curious, I was a PM .. Band 8 High PBC's for 8 plus years.. Customer Facing.. got whacked. Seems like the pitch to get more PM's was a joke. From what I hear, ITD and SSO will get gutted over the next 6 months If you are in SSO managing servers remotely.. polish up the resume.. they can get 4 workers in Brazil from what they pay you...there is no more loyalty.

    Just look at what they are doing to the IBM'ers with the pensions.. These folks have given their lives to IBM only to be screwed over.. I don't want to work for a company like that...that alone sealed my choice.. Its over.

    Our IBM'er culture will need to be taken to another company. I wish all of those affected in the last few days the best of luck.. Please remember that you are not alone.. this is like a death in the family.. first its the shock and fear, then grief, anger.. Then the clouds start to part.. you have a whole new opportunity to work for someone else doing the same or something else.. we are not valued.. no raises why we have had record profits .. sam getting millions in bonuses.. I feel for those left..

    60 to 70 hours will now be the minimum.. sweating over the fear of losing your job.. target on your back. YOU DESERVE BETTER. F sam and the upper management back stabbers. Its nice to see managers and 2nd line affected now.. there is zero loyalty from IBM management now.. think of how that will affect morale.. Get ready for some paltry raise and news that's its over.. that's BS. Read the proposals from the last stock holders meeting.. something big is up -Sore Sphincter-

  • Comment 05/30/07: Band 8 Pre-sales tech support IBM ebusiness Hosting Several people cut in our group today. We are all work-at-home people. Seems we are excess surplus resources in line with the 25% ongoing cuts in CES. 30 days to find a new job inside IBM, 1 week pay for every 6 months of service. Next day shipment will show up tomorrow with the details. Not really sure I want to look for another IBM job. We just are not doing good work anymore for our customers. We treat our teammates at IBM even worse. Man this sucks, just fired the maid too ;-).... C_ya_later_IBM -Just been fired-
  • Comment 05/30/07: 1500 is the number laid off and (hopefully) given packages. This does not include the number fired for trumped up 'performance issues' or forced out. I wouldn't be critical of the union here for scaring people! The number of 12,000 for 2007 is a reasonable one. And that number would be 8% of the US workforce (since most of these cuts are coming in the US). With force outs and bogus firings the number could be as high as 1 person in 10 in the US. (The definition of 'decimated') -ExRochBeamer-
  • Comment 05/30/07: Well, I tried all month and could not get accepted to any of the job postings. Even after hearing several time - "you're a perfect match - let me get approval and you're in". Then BAM - they see the RA blacklist and I am history. I heard the real meaning of LEAN is "Less Employees are Needed". God Bless you all and stay strong. We will be okay outside IBM. -Kicked to the Curb-
  • Comment 05/30/07: Layoffs today of developers in the Rational brand. Lexington site was hit. Unclear how many; numbers were not given. Hall-talk guesses a dozen at least. Sounds like all were offered a package; details not given to the rest of us. At least one 1st line and at least one 2nd line manager were hit as well as us monkeys in the trenches. -Anonymous in Lex-
  • Comment 05/31/07: Let's make sure the news media understand. First, 3500 may only be one percent of IBM's total headcount but it is more than one percent in the countries where the cuts are taking place. Second, IBM may be hiring 12,000, but they are not in the same countries where the cuts are. Newspapers, radio, and TV in Raleigh, Rochester, and so on, need to be alerted to this and ask more probing questions. -IASSOS-
  • Comment 05/31/07: It's really bad over here. IGS is hitting EVERY dept, with a few more layoffs here and there. This is worse than the layoff rounds in the 90s. These layoffs are more 'stealthy' this time around. Mgmt has been telling people that they cannot divulge to others if they have been RA-ed. Presumably, this is so that the remaining workers aren't demoralized any further. Some people can't do it. They are packing up and leaving. Shaking others hands thanking them for the honor of working with them. -the titanic-
  • Comment 05/31/07: Layoffs are happening big time over here in NY . We're part of IGS ITD/SSO. Mgmt has told those affected by the RA, to keep quiet. Seems the DPEs, FAMs and PEs are getting hit this time around. -ibm suxs swamp water-
  • Comment 05/31/07: For I have been placed in the firing off list... I was given a long list of all divisions in software group listing all jobs, organized by age, and number of people affected in that range. Tivoli has 34 on the list. I haven't had patience to come up with the totals but it's a 45-pages long list.. each page about 22 jobs... each job about, say 10 people... approximately 10,000 cuts ... -All-
  • Comment 05/31/07: Don't believe for a minute that RA's for the Quarter are done. I heard from a manager and a team lead that RAs are not over. I know our team will be hit. Don't know how many, don't know when. But we will be hit before the Quarter is up. -Anony Mouse-
  • Comment 05/31/07: RA 5-30 7 yrs - 5 overachieved quota. Band 9, age 49 single Mom STG got word yesterday. Will see package when my manager gets back from vacation. -sad to go-
  • Comment 06/01/07: Southbury got hit today 6/1. IBM layed off several contractors. One of my friends just called me to tell me his job was eliminated and the work was being sent to Poughkeepsie. The Southbury, CT site is slated to be closed down. -waiting for the ax-
  • Comment 06/01/07: Significant job cuts in the Transition organization within ITD this week. Cuts included 2nd and 3rd line mgrs, but also many valuable technical folks. It is clear that there are more holes in the dyke than we have fingers remaining already. The business is already beginning to break measurably. One wonders how long this can continue before we begin to see a mass exodus of customers. -HangingOnInBoulder-
  • Comment 06/01/07: Well I made it through another one. I figure in my job I have another year at the tops. I really feel for all of the IBMers that have been let go. I went though the same thing with my last employer but they gave us 8 weeks notice and we were not expected to even show up for work during that time. I was lucky enough to find a job in 4 weeks. Well maybe not lucky; it was with IBM. All of you people that did get let go maybe the lucky ones. If you look closely at the news this is a company that is circling the bowl.

    I am bailing as soon as I find something. Active job search starts next week. I am not waiting for the severance. I figure it will get reduced soon anyway. In the meantime, I plan on putting in the bare minimum in OT. I think that everyone of us that is left needs to do this. The only thing that has been keeping this company floating is the sheer effort of the employees on the front lines. Let the process fall apart. No more 60 to 70 hour weeks.

    Apply Lean to your own life. Cut out the excess work. Your customer, IBM, is only paying you for 40 hours a week. So, if you follow the Lean principles then they should only get 40 hours worth of work. Not 41 hours. Definitely not 50 plus hours. I am not saying to do anything unethical such as walk out of Sev1\'s or ignore your pager while on duty. But you sure can bail out of work at the end of the day, leave your pager at home while you are not on duty, and turn off Sametime and not answer your phone 30 minutes before you leave.

    Anyone hassles you then use Work/Life Balance as an excuse. Let us face it. They have been out of legitimate PBC 3's and 4's for some time. They are creating them now for an excuse to let someone go. It is only a matter of time. Save your strength for your next employer who will hopefully appreciate it. To everyone that has been laid off I wish you the best. Hope to see you in the next company I work for. -Missed again-

  • Comment 06/01/07: Entire dept whacked. Mostly contractors, but some IBM'ers and mgr. SWG. -John Doe-
  • Comment 06/02/07: Yesterday afternoon the JOBS application transfer tool was SHUTDOWN. I have this from a reliable source. This is why folks are not able to be hired into a new job. The hiring mgr wants you, but the IBM process is stopping it. The hiring mgr doesn't know it until he works thru the process to get you on-board. The lying louts in upper mgmt are even lying to their 1st line mgrs. The information is given to them on a need to know basis. Folks - the purpose of layoffs is to thin the ranks. It defeats the purpose, if folks are allowed to find other employment inside IBM. -forget about it-
  • Comment 06/02/07: To Curious: Yes - this is confirmed by 2 upper level sources that IBM is getting out of the Southbury site. LEAN is part of the process to get them out. The medium term plan is to move the work to Pok, then after it is there, off-shore a good portion of it to Brazil. The timeframe to do this will be influenced by several factors, including 1/2 half results. Get out now while you have the chance. -waiting for the ax-
  • Comment 06/02/07: Many of the supporting DPEs and FAMs got hit this time around. No one is around to interface with the customers. It is now apparent to me that IBM/IGS wants to 'clean the slate' by dumping customers as well as employees. The company must have been bleeding red for sometime now. Someone in the Ivory Tower finally woke up and realized all the money that was being lost. Guess it doesn't pay anymore to keep their current customer base. It will be interesting to see how many 'breach of contract' cases will be brought against IBM/IGS when the customers finally realize the extent of the cutbacks. Once again, the bureaucracy within IBM is their own downfall. They created such huge support structures that nothing can possibly sustain it. What is amazing to me is that they are dumping management. No one is safe anymore. Get out now while you have the chance. -let the games begin-
  • Comment 06/02/07: if you still work for IBM and are riding this out..... you are a fool. anyone not looking elsewhere is blind..... there are gonna be ten's of thousands of people..... its better to find a new job when there are 40,000 people looking at the same time.... give up on this quest, ibm gave up on you. -LEAN Coordinator-
• From the General Visitor's Comment page:
  • Comment 05/28/07: I am one of the IBMers who lost his job this Month. May 31st is my last day. I started as a contractor working on the Y2K project in 1999. My team managed to finish way ahead of schedule. After the project, I was "secretly nudged" into applying to become a regular. (even though IBM managers are not supposed to actively recruit contractors.) I went for it and got hired. My hiring manager took another job 2 months after I was hired 8 years ago. He brought me in, made me feel like he cared about me and then "poof" gone. I have had 6-7 different managers since then.

    Mostly feeling like a step-child because they gravitated toward the people they knew and had under them already. No leadership, no information, everything always hush hush and US vs THEM atmosphere. There was some help along the way with the diamonds in the rough managers, but all in all, the ones who tried to be helpful had to put up with a lot of pushback from 2nd and 3rd line mgrs. WHY? because they didn't know any of us or what we did day to day AND didn't care. They just look at spreadsheets and have teleconferences. I have a lot of anxiety and stress right now. BUT, please don't feel sorry for me. I have been miserable at IBM for years now. Always hoping things might get better, but they just kept getting worse. The scientists in IBM research are the only reason IBM still exists. and I don't want to hear. "Well that stuff had to get marketed and sold blah blah blah." Unscrupulous salesman and marketing people are a dime a dozen. Brilliant scientists are rare and IBM has plenty of them.

    Quick story: About 1 or 2 years into my employment at IBM, I had a blind date. She was an office manager of a big electrical supplier in the Bronx. When I told her I worked for IBM, she started blasting me and IBM. I mean, she was foaming at the mouth. People started to look over at us. IBM was their IT company, completely dropping the ball, giving her and the company the run around. Needless to say, there was no second date.

    I'm not upset because I got laid off. In fact, I'm kinda elated to get a package and unemployment and try to start my own business. What I am upset about is the way I have been treated overall during my years at IBM as I mentioned above. The arrogance and ego's floating around IBM is sickening. Hypocrisy and mean spirits. I was often spoken down to and insulted by many fellow employees I was trying to service. Those same people always abusing and trying to work around the system. Working around the system skews numbers and alters reality. Especially when our head count depended on the "numbers". BUT, I did make some friends and there are many nice people at IBM.

    We would watch the IBM helicopter land at our site with Lou, or Sam or whoever and reasonably estimated the cost at thousands of dollars for that trip, when it was only a 10-15 minute car drive from Armonk. Heck, take a limo. It would still be much cheaper. But I guess toolin around in a chopper makes y'all feel way more important doesnt it? And my manager can't get reimbursed to buy us pizza once a year. I wish all my friends still working at IBM the best of luck. AND yes, I wish IBM research the best of luck because they do some incredible things in this world.

    Well, I said my peace. I got it off my chest. Now I have to go work on my new journey in life. And in the end, life/happiness is a journey, not a destination. -Itrainedpradeepgupta-

  • Comment 05/29/07: To 1Question 5/25/07: Repent and sell every share you've got. The WSJ just came out with an article that points out the primary reason IBM did the accelerated stock buy backs was for tax avoidance reasons, not because management thinks it's a good investment. As a matter of fact, the WSJ article says that they are counting on that the shares will fall in price so when they buy the borrowed shares back on the open market with an overseas subsidiary they will make even more money. You can sell everything that you bought in any previous offering period without penalty. Consider even selling what you\'ve bought in the current period as well, since the market is at an all-time high and many are doubting it will stay that way for long. Diversify! Don't let what happened to those who didn't diversify away from their employer happen to you when IBM (and you and I know why) share prices collapses. Terra in firma? Good analogy for the water soaked foundation of a house of lies. -GTS Slave-
• Pension Comments page
• Raise and Salary Comments
  • Comment 05/28/07: Salary = 40,000 yr; Band Level = 2; Job Title = Production Specialist; Years Service = 10; Hours/Week = 40; Location = East Fishkill; Message = Very low salary. No hope for advancement. PBC is a joke. Computers taking over human responsibilities. Enough said! -Current IBM er-
  • Comment 05/29/07: Any news of the Salary raises for this year ? When is it due ? Do you know why the PBC goals are not approved yet for year 2007 ? Has anybody tried to "convert" from IBM Employee to independent Contractor ? If so, please post on how to do it ? What things should be considered ? -Try_To_Stick-
  • Comment 05/29/07: Band Level = 8; Job Title = Unix SA; Years Service = 9; Hours/Week = 50 - 70; Div Name = SSO; Location = work@home; Message = I point blank asked my manager why we haven't heard anything - she provided no response. I told her "silence is golden and understood".. she then stated she would communicate to the team via a meeting. That hasn't occurred. This is the most unprofessional I have seen IBM in a long time. We are all professionals.. treat us as such.. if there are no raises.. that is fine - just explain that and lets all move on. -beyond_frustrated-
  • Comment 05/29/07: When the frig are IBM managers gonna have the GUTS TO TELL US whether we got a 0% raise or not????? The paperwork has to be in by now, right? So what's the WAIT????? Or are they so friggin busy COVERING and LOOKING AFTER THEIR OWN DIRTY BOTTOMS or doing the LEAN RA's to give a friggin damn? -Anonymous-
  • Comment 05/30/07: I was told that raises have to be in the system by June 1st and they have until June 12th to inform each employee. -ibmer-
  • Comment 05/31/07: I just emailed my manager asking about raises & he said he'd probably be discussing it next week. PBC = 2 Did anyone get a 2+ or a 1 PBC rating this year? -troubled in Tulsa-
  • Comment 05/31/07: Years Service = 20+; Hours/Week = 40; Message = I'm a 2+, but think I'm above the salary midpoint (no doubt it will move this year). So, I probably don't qualify for Top Performer or any other bump. Plus, mgr said pay plan wasn't very good this year. Yessir, that'll really motivate me to volunteer for stuff. -underwhelmed by ibm leadership-
  • Comment 06/01/07: Salary = $110k; Band Level = 8; Job Title = IT Architect Years; Service = 9; Hours/Week = 50-60; Div Name = 07; Location = Boulder, CO; Message = No raise for the past 3 yrs. Bonuses are pathetic in spite of 2+ PBC ratings. Happy to still have a job, but angry at the FUD being created. Definitely looking around for other opportunities. I bet I'm not the only one! -IBMer for now-
  • Comment 06/01/07: Salary = 50k; Band Level = 5; Job Title = ssr; Years Service = 8.5; Hours/Week = 40/base + OT; Div Name = ITS; Message = Pay increase? Makes no difference to me. I'm hourly. If I need an extra 5% this week, I work it. If I need an extra 10% this week, I work it. My manager was telling me a couple of years ago that there just wasn't any money for a raise. I told him that was OK, I'll just get mine in OT on Friday. He wasn't happy, said I should be fired for saying such a thing. I told him that my pager goes off around the clock, I'm on standby around the clock, and all I have to do to collect the money is respond to the page. IBM has set the rules of the game, and I just follow them. So management, keep the raises, I'll get mine on Friday.... -gadfly-
  • Comment 06/02/07: Salary = 48K; Band Level = 5; Job Title = Test Engineering Specialist; Years Service = 28.5; Hours/Week = 48-50; Div Name = Micro; Location = Endicott; Message = I left IBM in 02. While I was there, I too, had a pager 24/7. I also worked from home as line support.. no matter what time of day.. I got phone calls at home during 3rd shift. They even called me on my wedding anniversary just when I was about to...well anyway. My point is, that I got paid OT for that. I made sure of it. At the time, IBM honored the policy of 'coming in off-shift for support, paid 4 hours', regardless of my actual time spent there. I also charged them for the time when I was called at home and had to turn on my desktop and do remote fixes.. All the managers I had; never got upset at what I was doing. They knew it because I had to fill in a time card and they signed it. So Gadfly, I agree with your practice; However, you should remember that the whole reason IBM is firing people is because US employee labor COSTS TOO MUCH. Be aware that you could be next. -Hans Solo-
• PBC Comments
  • Comment 05/29/07: It's really bizarre what happens to a large company. The lower level grunts work really hard to get the actual work done, while upper levels create fancy presentations and attend meetings to figure out what, and who they are going to delegate. All the while holding up the image to the lower level that they are "making it happen" so they look important and the grunts keep working as hard as ever. Then the upper levels get to hire who they please, and protect who they please, all the while carefully orchestrating the illusion that they know what they are doing. -CompanyJive-
  • Comment 05/30/07: Prior Yr PBC = 2+; This Yr PBC = 2; This Yr Bonus = 0; Prior Yr Bonus = 2k; Message = pbcs do not add value to IBM. I think that there is a mandate to cut a certain percentage of employees in the USA. So pbcs are a cowards way of doing this. Managers fool themselves and are able to sleep at night because they did not really do the cuts themselves. They believe that the pbcs did it. They think actually that the pbcs reflect performance and therefore it is not their responsibility nor their fault if a person gets themselves into the state of having a bad pbc rating. What they fail to realize is that unless they want to move out of the usa pretty soon they won't have anyone to manage. And by the way, US employees regularly work overtime especially band 6 through 10s and take less holidays then non-US employees. How will the number crunchers account for this loss? They won't. -Anonymous-
  • Comment 06/02/07: Prior Yr PBC = 2; This Yr PBC = 2; This Yr Bonus = 0; Prior Yr Bonus = 2k; Message = Took on a LOT more responsibility last year than in prev years. Got my max # of Thanks Awards all from people outside my org to show how diverse my skills were. Still got a "2". So why even try harder? I understood we were supposed to be rated against others in your SAME BAND level, but obviously not. The same people get the promotions, bonuses, etc., every year no matter what, and unless you walk on water (or are good at kissin' mgmnt's behind), expect to be passed up. -John Doe-

Vault Message Board Posts:

Vault's IBM Business Consulting Services message board is a popular hangout for IBM BCS employees, including many employees acquired from PwC. A few sample posts follow:

• "Right again, Dr. ABC" by "wonderaboutibm". Full excerpt: Your basic point that failures within the IBM management are the proximate cause for so much anti-India venom on this board is right on the money. We have also been subjected to an equally overdone reaction from certain Indian posters.

  Americans SHOULD generally be pleased that the rest of the world -- especially the "emerging markets" -- are starting to catch up. We are the deliberate creators of some of the mechanisms that the emerging countries are now latching onto to pull themselves up.

  The problem is in the smoothness of any required labor and capital rearrangements. And here IBM has been spectacularly inept. No one can argue that instead of true global labor integration, we have a mad and unseemly scramble for the ephemeral benefits of labor arbitrage.

  What with all the harrumping about "IBM Values," I would expect a little more straightforward and honest communication with IBMers in the US (and anywhere else) about what is going to change. But there is no communication -- not even in reaction to almost hysterical commentary by industry observers like Cringely.

  If you read my previous posts concerning Indians, I do hope you find no racism -- but just deep skepticism that IBM's global resourcing strategy is sound. IBM's employees, customers, and business will be harmed along the way.

• "Too Simple..." by "Dose of Reality". Excerpts: We agree with the broadest conclusion, and the one which is the most relevant for those that use these boards, in that IBM is a lousy place to start, progress, or complete a career in this industry. They did screw up in deciding to try to assimilate PwC, and as a result screwed up the integration. They are trying to move their labor pool to Asia, without having any semblance of a change management plan, nor a valid business rationale, other than lowering labor costs. Anyone in this country that is interested in making a career in IT services would be a fool to come here. The compensation and reward plan will be anchored in Indian wage rates for the foreseeable future. IBM has set up both its Indian and U.S. labor forces up for failure. [...]

  I don't pick on Indians - I denigrate IBM for building the offshore model. If we were offshoring to some other country where the resources were ignorant about business, challenged with communication, and culturally unable to provide customer service naturally and as a matter of course, I would be talking about them instead. The ire is completely directed at IBM for abandoning the blue chip functionally literate resource model in its g-B-s staffing strategy. [...]

  So you can continue to think that I am part of the problem, but history will look back and say that those that pointed the finger at IBM's leadership and HR decisions over the last decade or more have been much more a part of the solution. The opportunity for offshore labor to cash in on this labor arbitrage is only a small component of a much larger picture. It doesn’t deserve much of my attention, nor yours, and only gets my attention when I read something stupid here that challenges the reality of the situation.

• "Resource Action being announced today" by "LivingWithThePig". Full excerpt: About 1500 people are being RA'd today with a 30 day package in which IBM will help them look for jobs within IBM. The interesting thing is that "adverse reactions" are a deal breaker and will put the package "at risk". In other words, be nice and grateful for being laid off or risk losing whatever little IBM is willing to do for you.
• "Some Options" (for trying to get a buyout offer from IBM) by "Dose of reality". Full excerpt: Conventional road:
  • Work nine to five - no exceptions. You can't be forced to work overtime
  • If you are not staffed, resist strongly any opportunities that come your way - be professional but tenacious in your resistance, make sure all of your communications are in writing and keep good records
  • Cut your productivity by 30% - you may have to ease into this one over 3-4 weeks so it is not prosecutable
  • If you go on client interviews be resourceful about finding out what they are looking for and be something else.
  • Refuse to travel - cite family reasons, again be firm

  Unconventional Road - need a combination of these to be effective:

  • Don't shower for a month
  • Wear tie-dye shirts and jeans to the client
  • Format the hard drive on your laptop every other day
  • Send a blast E-Mail to everyone in BCS complaining about the excessive emphasis on diversity
  • Put Accenture logos on all of your client deliverables
  • Imitate Austin Powers whenever you are on site
  • If a client asks your opinion, tell them that you first have to check with your mommy - this won't be too much of a stretch for some of the current troops
  • Spend at least an hour a day on Monster.com - be conspicuous
  • Load a Sponge Bob screensaver on your laptop
  • .Send love notes to our fearless leader and propose marriage - in today's world this is a gender neutral suggestion!

Modern-Day Robber Baron Corner:

Today's highly compensated executives face many difficulties, including figuring out how they can possibly spend all of the rich rewards they've earned on the backs of ordinary workers. Take a look at the insider trading of many of our IBM executives—spending the cash from all that stock "acquired at $0 per share" must be a real challenge! Or, imagine the difficulty IBM CEO Sam Palmisano will face spending his $10,000 to $20,000 a day pension when he retires!

As a way of helping out our beleaguered, modern-day robber barons this site will periodically feature "spending opportunities" that the "upper crust" of our society may want to take advantage of!

• Forbes: What Worries the Rich. By Louis Hau. Excerpts: Having real money doesn't mean you stop worrying. No, really. Sure, you don't have to think about whether you'll be able to pay your electric bill or balance your checkbook. But the rich do fear being cheated by an unscrupulous financial adviser, being a victim of some other financial fraud, having their identity stolen, being unjustly sued or violence against themselves or their families. [...]

  During the course of 19 surveys conducted in 2005, 2006 and 2007, his Redding, Conn., firm, Prince & Associates, asked about 2,500 high net worth individuals what issues were of the greatest concern to them. Survey participants earned their own fortunes, which totaled at least $500,000, with most participants being millionaires many times over. Heirs and heiresses weren't included. [...]

  Managing a large fortune composed of liquid and physical assets, scattered in various geographic locations, can be a time-consuming task that's separate from the job of running the business that generated the wealth in the first place, says Amy Braden, head of the Family Wealth Center at J.P. Morgan Private Bank in New York, which serves clients who've amassed fortunes worth more than $25 million.

  "There actually is work in overseeing that,'' she says. "People might be surprised about the extent to which wealth can be a burden. It doesn't take care of itself and those who are wealthy and have a sense of responsibility about that wealth, take that responsibility very seriously.'' [...]

  Strikingly, what most concerned those polled was not being able to maintain and improve their current status and get ahead. This might come as a surprise because, well, they already are ahead. Overall, 91% call "the luxury lifestyle" a key issue, 94% say the same was true of "the lifestyles of the exceptionally wealthy." These exceed the 81% who say "not being able to meaningfully enhance" their current lifestyle is important, which is about the same level as "making sure your heirs are taken care of."

  As Russ Prince describes it, it's the mind set of "I have the $5 million jet. I want the $10 million jet." But he doesn't see it as greed. Rather, he says, it's simply a reflection of what everyone at every income level wants: something more.