A backlash is on the cards at software and services provider IBM over plans to close its final salary pension scheme to future accrual and to alter the terms of its early retirement scheme, warns Unite.

The UK's largest union, which is currently caught in the middle of an industrial action consultative ballot at Fujitsu, said the recoil at IBM has been gathering pace with hundreds of workers joining the union. Unite has calculated that people in their mid 50s could stand to lose up to £200,000 as a result of the proposed changes, announced in July 2009.

The changes could, Unite said, lead to between 700 and 1,000 people choosing to take early retirement prior to April 2010, when the new early retirement provisions take hold. Unite is organising a series of meetings throughout the UK in relation to the announcements.

Peter Skyte, Unite national officer for IT and communications, said: "IBM is facing a backlash against its pensions proposals. Hundreds of workers are joining the union determined to stand up to this unacceptable attack on their pensions. These highly skilled and experienced staff were key to the company's survival and they view the company's proposals as a kick in the teeth.

"IBM is a highly profitable company with substantial revenues and cash reserves. But is using the recession as a cloak to close its pension schemes to existing members and further line the pockets of its shareholders and senior executives at the expense of its loyal workforce."

The company, which employs around 18,000 in the UK, has several DB plans which it is planning to close, and has begun a 60-day consultation period with a Pension Consultative Committee of employee representatives, including Unite members.

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