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

• California HealthLine: State HMOs Spend $6B on Costs Unrelated to Health Care. Excerpt: California HMOs spent $6 billion on administrative costs in 2007, some of which could have gone toward driving down insurance premiums or better protecting the insured, according to an annual report by the California Medical Association slated for release today, the AP/San Francisco Chronicle reports.The report, based on expenditures reported to the state Department of Managed Health Care, found the insurers made more than $4.3 billion in profits in 2007, and annual CEO salaries topped $1 million at at least five insurers in the state. Anthem Blue Cross spent 79% of its revenue on medical care, the smallest percentage among major insurers, according to the report. In a statement, Anthem said that it is a for-profit business and that it pays more in taxes than the not-for-profit HMOs included in the study.
• New York Times: High Medicare Costs, Courtesy of Congress. By David Leonhardt. Excerpts: On Wal-Mart’s Web site, you can buy a walker for $59.92. It is called the Carex Explorer, and it’s a typical walker: a few feet high, with four metal poles extending to the ground. The Explorer is one of the walkers covered by Medicare. But Medicare and its beneficiaries aren’t paying $59.92 for the Explorer or any similar walker. In fact, they’re not paying anything close to it. They are paying about $110.

  For years, Congress has set the price for walkers and various medical equipment, and it has consistently set them well above the market rate, effectively handing out a few hundred million dollars of corporate welfare every year to the equipment makers. ...

  In the abstract, fixing the health care system sounds perfectly unobjectionable: it’s about reducing costs (and then being able to cover the uninsured) by getting rid of inefficiency and waste. In reality, though, almost every bit of waste benefits someone. Doctors who perform spinal fusion surgeries, despite decidedly mixed evidence that they’re effective, are making a nice living. Hospitals that order $1,000 diagnostic tests, even when a cheaper one would work just as well, are helping their bottom line. Medical equipment makers selling walkers for $110, while Wal-Mart sells them for $60, are fattening their profits.

  The current fight to protect those profits is a microcosm of what you can expect to see if a larger effort to rein in health costs ever gets going. The defenders of the status quo won’t say that they are protecting themselves. Instead, they’ll use the same arguments that the medical equipment makers are using — that a change will destroy jobs, bankrupt small businesses and, above all, harm patients.

New on the Alliance@IBM Site:

• Is IBM offshoring the IBM Payroll Help Desk to Manila, Philippines? If you have documentation please send to: Allianceibmunion@gmail.com
• From the Job Cuts Status & Comments page
  • Comment 06/23/08: Been there done that.. You're talking about an IBM that has not existed in the USA since 2001 - 2002. IBM, as far as ITD - GS, has gutted and thinned out the resources so much that its beyond the fat, they are loping off arms at this point. We were into muscle and bone during 2005 2006. I watched as contract after contract went from judging the sla's and customer sat to using lawyers to fend off the lawsuits from missed sla's and poor performance.

    I watched a robust pipeline drain whilst hearing all types of excuses why it wasn't filling, as we watched HP and EDS take our lunch year after year.

    Its amazing about the comments regarding folks in India and China. Yes, there are some brilliant folks there. My experience has been a completely different work ethic, lack of continuity, customer dedication during a crisis is lacking. Management is only looking to exploit a cheap labor force, that's it. You read stories about how abused the ibm employees are in India and how folks are leaving in droves. Ibm is now exploiting Vietnam, because the labor is cheaper. It doesn't change. You can sugar coat it all you want, the bean counters are running the business. Ibm's rep continues to drop in value. -former ibm'er-

  • Comment 06/25/08: The Burlington plant will continue to layoff employees throughout the summer. 180 in already happened in June. I heard from a very reliable source (my former 2nd level manager) that there will be a few hundred more in July and August. Join the Alliance and lets stop this harassment of American employees. -Joe-
  • Comment 06/25/08: Well, I was RA'd from GS in May 2007. I periodically check in here just to see what shenanigans IBM is up to and, sadly, they seem to be as bad or worse as they ever were. For me, things couldn't be better after IBM...better pay, better working conditions, respect, etc. I know many people are just hanging in, waiting for that package which may never materialize, or may materialize, but may be far less than you'd hoped. My own thoughts are that I wish I had acted on my own disenchantment with IBM 5 years prior to the RA. I know damn well that I'd be farther ahead now if I hadn't clung to IBM and had actively pursued other opportunities.

    So here's what I have to say: while you remain with IBM, join the Union. I can tell you that I'm in a union position now and I work 1/2 an hour less a day, make $20K+ more, and get paid overtime at 2X. Oh, pay increments are set out in our union contract, so it's not down to the whim of IBM management. One last piece of advice: when something better or with more potential comes along, take it and don't look back. You'll more than make up the pittance IBM will throw you when you're RA'd, through improved quality of life and (most likely) improved remuneration. -You Don't Always Get What You Want...-

• General Visitor's Comment page:
  • Comment 06/24/08: Yes, IBM had a another record profit margin with revenue up 26% As a stock holder I would be asking the question why management in East Fishkill NY is telling employees that their annual pay raise / cost of living adjustment is only 0-1 % because of poor related business profits. Managers are calling it a real slap in the face. Meanwhile a local IBM executive retires with a 11 million dollar bonus check. It appears that profits are now regulated using blood money and how many AMERICAN jobs are called surplus. -Truly Senseless-
  • Comment 06/26/08: I am about to have a birthday on June 30. This day should be a happy day for a person; but it will be my 3rd ann. away from IBM. I have read so many comments and stories on this site and I simply cannot understand how IBM has walked so far away from the path of the founders. I do not believe the company can and will see the effect of its actions until it is too late. I am sorry for those who lost 15% of their base salary. I feel for all who received a 1 or 2+ PBC rating and no raise. The message now for those still in IBM is what are you going to do about the treatment. You need to take action and form a Union to protect and restore what you have worked so hard to obtain. I am not part of Alliance because it has been a struggle for me over these 3 years. I, however, am starting to see the light at the end of the tunnel. I was not prepared for RA action. I never thought IBM would let me go after 20 years and a 2+ performer. I stronger because of the IBM's action. I only hope that each and everyone you are ready, if you do not take the action required now. STAND UP and LET YOUR VOICES BE HEARD! -RA'edonBirthday-
• Pension Comments page
• Raise and Salary Comments
  • Comment 06/20/08: Band Level = 8; Job Title = Advisory; Years Service = 20+; Hours/Week = 40; Div Name = STG; Location = Rochester; Message = PBC 2+, 2% raise. Heard IBM focusing on variable pay instead of raises. -Anon-
  • Comment 06/20/08: Band Level = 6; Years Service = 2; Message = Got a 4% raise, after my pbc 2. I am at +70% in my market base. Bonus last year was 5%. I guess I cant complain, but it all goes to gas prices... -Skippy-
  • Comment 06/20/08: Salary = 60000; Band Level = 7; Job Title = pm; Years Service = 12; Hours/Week = 30-40; Div Name = 7; Message = if a union is ever formed we need to hire the guy who handled the johnson city fire dept contract...he got them a 41 % increase over 5 years!!! http://www.pressconnects.com/apps/pbcs.dll/article?AID=/20080620/NEWS01/806200352&referrer=FRONTPAGECAROUSEL -shocked-
  • Comment 06/23/08: Salary = 67,075/yr; Band Level = 7; Job Title = advisory learning specialist; Years Service = 12; Hours/Week = 45; Div Name = BTO-HR; Location = teleworker; Message = I was rated a "solid" 2 (which I know from the old IBM was a 3) but told by my mgr that they submitted me as a 2+ but it was shot down. So because I am at 94% of my midpoint salary range I'm not entitled to a raise this year. And in fact was told that according to my manager's manager that even some "1's" are not getting raises. So it makes you wonder exactly who is getting the money from our stellar performances quarter after quarter!?!?!? -T
  • Comment 06/23/08: A whopping 1% for a 1. Showing myself the door. -LookingForDoor-
  • Comment 06/23/08: Salary = 52,000; Band Level = 6; Job Title = IT Specialist; Years Service = 3.5; Hours/Week = 45; Div Name = 6c; Location = Tulsa; Message = I'm worn out and no longer motivated to remain loyal to IBM. Stock is almost doubled and we had a great quarter with raised dividends yet I get no performance pay, market based adjustments do not apply to me and my promotion to band 7 was blocked despite objections from my first and second level supervisor. I'm in the market for another job unless something can change quick with IBM. From what i have read and heard, I just need a new job. -Anonymous-
  • Comment 06/23/08: I finally saw the light and joined the Alliance. I know many have said this but I am going to say it again. Join the union. It is our only hope. I am a 30 year IBMer and never was pro union before. I always loved IBM and felt valuable and respected as a person/individual and a professional. Obviously not any more. The pay cut then the no raises was the last straw. I work in GPS and over 80% of us in the U.S. did not get raises. Our managers let us down a while ago by not fighting to keep us exempt and by hiring more and more IBMers from South America and Asia. I respect them as people and as IBMers but none of them got a pay cut and all of them got increases. So much for the selling-out of America. -saw the light-
  • Comment 06/23/08: Salary = 123K; Band Level = 8; Years Service = 28; Hours/Week = 40; Message = Rated 2+;, 10% over band midpoint, got a 2% TCR raise (no MBA) and about 6% variable pay amount this year. Who needs the Alliance? -Old IBMer-
  • Comment 06/24/08: Salary = 104,000; Band Level = 8; Job Title = The dreaded I/T Specialist; Years Service = 21; Hours/Week = 45; Div Name = 16; Location = Washington DC Message = 0% raise. No MBA for I/T Specialists. I'm taking the first bus outta here. There's no hope for IBM. -marbles-
  • Comment 06/24/08: Job Title = IT Specialist; Years Service = 20; Hours/Week = 48.5; Div Name = 6C; Message = Is it true that employees in the IT Specialist job family received no raises? I was rated at 2+ and received no raise. I'm on a dead end project with the business manager running the show with no idea how to run a development project (I have spoon fed this person and the SPM has no backbone - worthless).
  • Comment 06/24/08: Location = IBM Japan; Message = Reliable source says that "without exception" everyone rated either 3 or 4 at IBM Japan is getting a 5-10 percent pay cut. I have at least one confirmed data point for this. Rumour has it that salary can even be reduced below the "minimum pay" for the band. Huh?!?!? -Amazed-
  • Comment 06/24/08: Band Level = 08; Job Title = I/T Specialist (but not job family 06A); Years Service = too many; Hours/Week = depends on mood or when spirit moves me; Div Name = 1K; Message = 2+ PBC, 1.75% TCR, 0% MBA despite being 25% or so below supposedly the band midpoint (I think it's more than that). WORST raise I ever got (when I did get a raise that is). We keep hearing from the Armonk spin morons that we had record profits and solid revenue growth last year and a great 1st QTR 2008. I'm TIRED of those line or business scorecard pep talk memos after every qtr. how we are doing and how we gotta make 2008 the best year for IBM ever. Cheap bastards running the three ring circus acts in IBM now! Organize now folks. It's your only fading hope now. GO Alliance! -anonymous-
  • Comment 06/24/08: -Old IBMer: Your days are very much numbered in IBM now, I'm afraid. Sincerely hope you can survive longer but the odds are stacked against you tremendously. Band 08's making 120K+ are gonna be cut since you make way too much by IBM standards. I guess you slipped through the LEAN initiative actions so far. Consider yourself VERY LUCKY to get a 2% TCR raise. It might very well be your last. Market based adjustment (MBA) is only for those folks paid way, way, way below band midpoint like band 8's being paid in the 70'sK and 80'sK range if the job family is determined to be able to get an MBA. I haven't heard of many MBA's given out so far. Maybe 2nd and 3rd line managers and higher got one! Who needs the Alliance? You do now! Or let LEAN find you and you'll be history in IBM. -IBM LEAN person-
  • Comment 06/24/08: Band Level = 8; Job Title = The dreaded "I/T Specialist"; Years Service = 11; Message = I got 2.5% being a 2+ there was no MBA funding so that is all TCR. 8539 is the midpoint monthly salary according to the paper I was given, I'm 21% into my band range with my increase. You would think that someone rated consistently above average (2+) would be doing better than way below the midpoint, but I know there are much worse stories than mine out there. My advice to everyone is to do what you feel is right for you. -Losing Ground-
  • Comment 06/24/08: to saw_the_light: First, there is no union to join, just an effort to get one started. Second, your manager has about .001% more authority than you do. They're more of supervisors these days. They really have no say in anything. The can't MAKE anybody keep you exempt, and their opinion about it to those who can make a difference pulls about as much weight as your opinion does. A first line manager fighting for employee rights is just useless in IBM - it simply doesn't matter. And when first line managers start siding with grunt employees over corporate direction, they're moved up on the RA list, too. The first line manager's role is to be the messenger of the moronic decisions and directives from the VPs. The managers probably have one of the toughest jobs lately (since its [lack of] raise time. They're given a $5 bill and told to divvy it up against their top performers, and probably told "if you have too many 1s or 2+s, pick names out of a hat - the first X number of people you draw get a raise". It's really sad, but don't rip on your manager when he/she can't do anything. -wake_up-
  • Comment 06/24/08: 2+ Performer 0% Raise -- Again! I'm tired of training my GL replacement. I'm giving up and giving myself a raise in sick days. My global counterpart will be clueless trying to close the quarter. -anon-
  • Comment 06/24/08: Salary = 67680 Band Level = 6 Years Service = 2 Location = Essex Junction - Regional Market Message = Salary 103% of market value. Yearly market range 43,000 - 87,420. Regional market. No Raise. You do the math.... -Facts-
  • Comment 06/24/08: (( 200 career beheadings today. Churn that work force baby. Fire 'em in Burlington, hire 'em in Bangalore. In all sincerity, I wish the best of luck to the families and communities of those affected. )) IBM Corp. cut about 200 jobs in its Microelectronics Division today, most of them at its Burlington, Vt., semiconductor plant, the company confirmed.
  • Comment 06/24/08: Salary = 68000 with Overtime; Band Level = 4; Job Title = SSR; Years Service = 16; Hours/Week = 40 to 50 +; Div Name = 48; Location = South; Message = Rated 2 + 3.5% raise -BlueandBeatenUp-
  • Comment 06/25/08: Salary = 140000; Band Level = 8; Years Service = 2; Hours/Week = 45; Div Name = 05; Message = PBC 2+; 3% raise, low comparing to other major competitors, even the industry standard. -IBMer-
  • Comment 06/25/08: Salary = 120000; Band Level = 8; Job Title = IT Specialist; Years Service = 12; Hours/Week = 40; Div Name = GTS; Message = I've worked for IBM for over a decade in Asia Pacific. Almost always had rating 1's.... I've had several years where I had no raise at all. Looks like the 'no raise' policy is global this year :-( Why bother killing myself...no more. -NoRaise-
  • Comment 06/25/08: Salary = $103,000; Band Level = 8; Job Title = Advisory Engineer; Years Service = 10; Hours/Week = 40; Div Name = STG; Location = New York; Message = 2+ performer, 3.5% bonus, no raise again for the fourth time in the last five years. All of my costs are going up, gas, food, insurance, taxes, etc. but I get nothing. No raise is like a 5% pay cut with inflation where it is now. As others have pointed out, stockholders are rewarded (dividend increase and huge stock buyback), IBM has record revenues and earnings, yet employees do not share in the success. I've worked my butt off meeting deadlines the past few months. Now what is my incentive to continue to work hard if I get no reward ? I think I'll stop trying so hard - or rather, put my energy into finding another job. -unrewarded-
  • Comment 06/25/08: Salary = 113000; Band Level = 9; Job Title = Consultant/PM; Years Service = 10; Div Name = 6C; Location = US Eastern Time Zone; Message = No raise. Again. Consistent 2+ performer. Only IT Architects received raises in my department. Blue Page manager told me that 90% of their employees did not receive any raise this year. Salary was 102 vs my region average. What am I supposed to do? Take a traveling job with competitor when right now I work mainly from home? -Boo-Ya-
  • Comment 06/25/08: Salary = 115K; Band Level = 8; Job Title = Senior IT Consultant; Years Service = 2.5; Hours/Week = 50 - 60; Div Name = GTS; Location = New Jersey; Message = Prior Year PBC: 2+ Prior Year Bonus: 4% Prior Year Raise: 4% This Year PBC: 2+ This year Bonus: 4% This Year Raise: 1% Will be out of here next month: Sign on Bonus: 25K Salary: ~8% more -New Jerseyan-
• PBC Comments
  • Comment 6/21/08: Tell me what you know about relative contribution (RC). My manager informed me that my RC is low against my peers but my work contribution is superb, and she advised me to look for other opportunities. What the #$%^@ is RC? -Anon-
  • Comment 6/23/08: RC is manager speak for kissing managements ass. Think of it as Rectal Coupling. Your lips their anus. As all your other work was undeniable, you didn't kiss enough ass. If you had you may have gotten the all elusive one rating which would not necessarily have gotten you a raise or even a bonus; but you would have felt better. Not having a contract is a great way to work isn't it? -Exodus 2007-
  • Comment 6/26/08: Concerning Relative Contribution: In February, all first lines have a "calibration session" with their 2nd Line. All employees under the 2nd Line are ranked. Your relative contribution is determined there. If your first line can't make a case for you to their peers that outweighs the manager's peer's direct reports, you will be further down the list. You may not like to hear it, but Exodus2007 is correct, with one exception. It's not just kissing your manager's butt, it's kissing her peer's butt too! -Former First Line-
• International Comments
  • Comment 6/24/08: Country = USA; Union Affiliate = CWA 1701; Job Title = I/T Specialist; IBM Division = 1K; Message = The IBM executive bastards used IBM Ireland until China was ready for the IBM global initiatives. No doubt about it! They don't call the preferred IBM countries they offshore//move/expand business BRIC for nothing and we all know the"I" is for India and not Ireland. -Joe A Beamer-
  • Comment 06/27/08: Country = USA; Union Affiliate = CWA; Job Title = I/T Specialist; IBM Division = GBS; Message = To Amazed from Japan: In the USA I got a 15% base pay cut in February which put me about $2000 USA under the band 08 minimum for geography for I/T Specialist (about $65,000 or so, the band minimum is higher than this). I was rated a PBC 2+ too. I reckon I would be better off working in IBM Japan :) IBM can do anything it wants in the global scheme of things without a strong global union presence. -IT paycut test resource-

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. Some sample posts follow:

• "AVOID IBM S&C!!!" by "DNAgrrrrrl". Full excerpt: I left S&C this year... had offers to consider and finally took one. Truth is, I was so unfailing MISERABLE in S&C that I was simply going to quit outright, even if didn't have another position. To be fair, good points: you work with some very very smart people.

  Problem is, that is the oNLY positive aspect I can think of. The negatives list is long: NO training. I mean absolutely ZERO. IBM should stand for "I'm By Myself". The worst manager I have ever had - and I have been working for 20 years. Unethical behavior: routinely try to charge clients for hours not worked; routinely overwork consultants on projects (12-15 hour days but you are only allowed to charge the client 8, so even though you are working insane hours your utilization doesn't reflect this, and your management criticizes you for underbilling.

  There has been a mass exodus out of the S&C group I was in: 7 people in 2.5 months. Management is uncaring and laughably unskilled. I have even heard one executive made a homophobic remark at a business dinner... and this was AFTER I told this person my best friend is gay!!! The experience was so bad that I could not even bring myself to write anything pleasant (e.g. "nice working with you" or the like) in my letter of resignation- it was one line: "I plan to resign on _____ (date)." I celebrated the day I left. I am now making more money, with more vacation, a bigger bonus (not to mention a big sign on bonus). I figure this was God's way of making up for my abysmal experience at IBM. Do yourself and your friend a favor -- stay out of IBM consulting! It is a mess.

• "The more they claim it's changed..." by "ancientblueconsultant". Full excerpt: ...for the better the more it appears from recent departees it's actually hasn't changed and it's getting worse. I guess you didn't get the "spirit" of modern slavery!
• "bitter should be made of sterner stuff" by "bluejules". Full excerpt: I guess you didn't like my snide reply. Actually I'm really not all that bitter, cynical for sure, realistic - you bet. I've extracted my fair share of treasure from IBM and was always careful not to give away my life to the blue pig. Wherever you go in IBM, even the best places, the pressure will be great to give everything you have to the company. Just don't. One thing is certain, IBM will not reciprocate equally.

  As was pointed out a few threads ago, the negative sentiment is likely focused in US, and other English-speaking countries. If I lived in one of IBM's growth countries and was looking to start a career, I would take a close look at IBM. The US is not so rich with opportunities. Actually, a few threads back ABC made a list of good areas in IBM where you'll get great experience. I recommend reading that. You could also likely make a similar list of technical areas where IBM would give you great experience, but I feel those would almost all fall outside of GBS.

  Anywhere you work in the US, even the best places, you'll feel like you're working for company about to enter bankruptcy - no money for anything: training, supplies, coffee, awards, pay increases, painting the F(&#$ walls, etc. I could go on and on. That's consistent with the fact that IBM is NOT investing in the US. So go in eyes wide open. This isn't the place to get my MBA paid for by my employer.

  Read the archives to find the places to avoid. They've been pretty well described. I don't have any broad recommendations for the US such as this sector or that business. They're all equally bad with pockets of better. Is IBM better than unemployment - sure. Would I rather work at IBM over declining companies like Sprint/Nextel or Circuit City (both big IBM customers)? I think so. Would I come to IBM expecting great opportunities and big job satisfaction? Probably not.