Sunday, April 5, 2009

Assemblyman wants probe into IBM's offshore jobs

By Christine Young, Times Herald-Record

Assemblyman Gregory Ball is demanding a state investigation into IBM's offshoring practices while taking taxpayer dollars.

On Thursday, Ball, R-Patterson, said he was drafting a letter to Chairman Richard Brodsky of the Committee on Corporations, Authorities and Commissions to request bipartisan hearings.

"IBM seems to have a long-term approach to outsourcing," Ball said, "and my fear is they're actually using taxpayer funds to subsidize offshoring good-paying American jobs."
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IBM did not reply to e-mails requesting comment.

Ball is particularly disturbed by the $45 million Empire State Development Corp. paid IBM Dec. 15 in return for not cutting jobs in East Fishkill in 2008. Only weeks after cashing the check, IBM slashed hundreds of East Fishkill workers.


"If they're taking New York state taxpayer dollars while it was their intent all along to offshore these jobs, then those dollars need to be returned," Ball said. "And we need to find every means possible at our disposal to get that money back."

Ball is also concerned about IBM's treatment of terminated workers over age 65.

V. Gordon Sears, 68, was dismissed from IBM in February after 40 years. His separation package stated he would receive 26 weeks of severance and one year of subsidized medical coverage, paying the same rate as when he was an active employee.

But Sears later learned that fired workers 65 and older would pay a much higher monthly premium and receive less coverage than those under 65. IBM forces the older workers to make Medicare their primary provider while refusing to pay the one-year subsidy.

"I pay $135 a month vs. the $38 I was paying before," Sears said. "That doesn't match up. Not only that, but my coverage is nothing. I have to run up $750 in bills out of pocket before they'll pay a dime."

"They're once again breaking their trust with the community and not providing basic coverage to those 65 or older," Ball said. "The New York attorney general needs to do a thorough investigation of the millions of dollars that have been handed to IBM."

Ball said Big Blue's behavior highlights the need for reform. "This is exactly why we should be focusing our energies on supporting small and medium enterprises, small-business owners," he said, "instead of subsidizing large multinational corporations with global reach, especially those with a proactive offshoring plan, like IBM."

cyoung@th-record.com
source: www.recordonline.com

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