IBM Japan had to desist from corporate split-up

IBM Japan, Ltd. has decided to put off its restructuring plan to spin off its hard disk drive (HDD) division.

The company informed the union of the decision at a collective bargaining session on November 15.

Commenting on the IBM decision, the All-Japan Metal and Information Machinery Workers' Union (JMIU) IBM Branch said increasing public criticism of unilateral corporate restructuring pushed IMB Japan into postponing the planned spin-off.

The parent company IBM in April announced that its HDD division would merge with Hitachi, Ltd. Under the plan, IBM Japan was to transfer the HDD division in the form of stock to Hitachi on November 28, but it will be postponed to December 25.

IBM workers of the HDD divisions are now greatly concerned about their future: how their working conditions will be, how their job position will be affected, and if they will be rehired by a new company.

The JMIU IBM Branch recently applied for a provisional disposition with the Yokohama District Court, calling for the suspension of compulsory transfer to a new company. (end)