Lenovo on IBM factory strike: Not our problem

Summary:Over 1,000 workers at the Chinese factory launched a strike earlier this month in protest over IBM's compensation and severance package policies. Lenovo will soon own said factory.


Tensions have been rising over a dispute at IBM's server factory in Shenzhen, China, and now the soon-to-be owner of that facility has issued a statement.

The memo can be boiled down to this: It's not Lenovo's problem, says Lenovo.

Over 1,000 workers at the factory launched a strike on March 3 in protest against the Armonk, N.Y.-headquartered company's compensation and severance package policies.

Within a week, it was reported that at least 10 IBM workers were fired as a result of their protests.

But Lenovo hasn't chimed in until now.

While defending that its deal with IBM is still subject to approval, Lenovo also cited that it will be picking up an approximate total of 7,500 IBM employees in more than 60 countries when (or if) the deal goes through.

Lenovo and IBM are two independent companies. Any integration between Lenovo and IBM’s x86 server department will not be conducted until the deal is closed. The strike at the IBM server factory in Shenzhen is an internal matter for IBM.

Lenovo revealed at the end of January that it would be acquiring another piece of the increasingly fragmented IBM portfolio: the x86 Server business, which includes the IBM x86 server factory in Shenzhen.

The Chinese tech giant agreed to pay approximately $2.3 billion to IBM for the low-end server division, which follows up Lenovo's purchase of IBM's own PC business back in 2005.

Topics: Hardware, IBM, Lenovo, Tech Industry, Tech & Work


Rachel King is a staff writer for CBS Interactive based in San Francisco, covering business and enterprise technology for ZDNet, CNET and SmartPlanet. She has previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish Americ... Full Bio

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