IBM is being reprimanded in the US for firing older workers. At the same time, some would be hired again as external, cheaper.
The US Equal Employment Opportunity Commission (EEOC) received complaints from more than 60 ex-employees saying that they and many others have been fired for being too old.
IBM itself denies that but admits that they were fired during restructuring to reduce staff numbers and costs.
EEOC disagrees. It says based on its own research that layoffs mainly targeted older employees. For example, there would have been instructions from top management to let them primarily in favour of newly graduated new employees.
While some workers made redundant were told that their capabilities no longer matched current needs, some were later rehired as outside workers, either at lower wages and without any fringe benefits.
EEOC maintains that IBM’s practices are not technically illegal. However, the organization does enter into discussions with the company to end such practices.