Like many other major computer companies today, IBM is facing the problem of restructuring its business to cope with leaner, more competitive times. This means job losses which must, under IBM’s code of practice, be found through natural wastage. On top of this IBM is having to deal with an ageing working population, as a result of a large intake of young employees in the early 1960s. To redress the age balance, IBM has come up with a way to encourage early retirement which, it claims, is not only good news for IBM, but also beneficial to its employees. Skillbase, 40% owned by IBM and based in Waterlooville, Hampshire, is a new company which has been set up to make use of the skills of former IBM employees. Employees that retire early from IBM have the option to enroll with Skillbase, which offers 90 days’ work per year for the two years following retirement. While the 90 days’ work are not guaranteed, employees will be entitled to 90 days’ pay, which amounts to 40% of their final salary. The remaining 60% of Skillbase is owned by nine permanent staff, including two ex-directors from IBM. IBM says that the majority of those being taken on by Skillbase are employees that retired earlier this year, although the company is also enlisting former IBM employees that retired up to three years ago. The latter are, however, not guaranteed work. Those signed with Skillbase can be hired out not only to branches of IBM, but also to other companies requiring their skills. This is just one of the benefits IBM will see from the setting up of Skillbase. By retaining for two years those that would otherwise have retired at the age of 53, IBM itself will not lose its investment in its more experienced work force, whilst being in a position to take on new young employees. The incentive for employees to join the scheme is that they get an early retirement, without the harsh transition from full-time work to unlimited free time. The scheme is available to those aged 53 to 60, although those aged above 58 will be entitled to fewer days’ work, according to a scale decreasing to 30 days. Pension rights are not affected. So far Skillbase has recruited people from personnel, education, finance, sales and information technology. Later this year Skillbase aims to expand this recruitment to IBM’s manufacturing plants and laboratories. Out of 186 IBM employees taking early retirement this year, 150 have already signed with Skillbase. As yet no such scheme exists in the US, although in October 1988, the company offered staff up to three years personal leave of absence, with the opportunity to work for IBM part-time, and guarantee of a full-time job when they return; a programme to prepare retiring employees to become community workers, with part of their IBM salary paid for two years; and the opportunity to work part-time at home during personal leave of absence (CI No 1,038). IBM UK claims that the setting up of Skillbase in Britain has aroused much interest among other IBM country subsidiaries.
