Lenovo Says It Won’t Cut Wages for Striking IBM Workers

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Chinese PC maker Lenovo Group Ltd. is attempting to placate workers at one of International Business Machines Corp.’s (NYSE:IBM) computer server factories, where more than 1,000 workers went on strike last week, according to Reuters. The strike occurred outside IBM’s server factory in the city of Shenzen in southern China.

Lenovo is the in the process of acquiring IBM’s server business, though the deal has yet to be finalized. The deal was first announced in January when Lenovo said that it would buy one of IBM’s server businesses for $2.3 billion, but the companies are still waiting on regulatory approval.

Once the deal goes through, more than 7,500 employees in more than 60 countries are expected to transfer to the Chinese company.

The workers were protesting the terms of their potential transfer to Lenovo. Among their concerns is fear that the Chinese company will cut costs after the acquisition by slashing their wages. Workers are also concerned about their severance package if they decide to leave the company after it transfers to Lenovo; workers claim IBM’s severance package isn’t enough.

Lenovo has issued a statement in which the company reassures workers at IBM’s server business that “Lenovo is committed to provide opportunity for all employees from IBM’s x86 server department who transfer to Lenovo, without any reduction of their wages and benefits,” per the Wall Street Journal.

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