Over 1,000 workers at an IBM factory in southern China have gone on strike due to the terms of their transfer to Chinese PC maker Lenovo Group Ltd, thanks to the U.S. company's $2.3 billion sale of its server business.
A number of workers could be seen gathering near the outside gate of the International Business Machines Corp factory in Shenzhen on March 5, and production remained suspended for a fourth straight day, according to Reuters.
"So far, we've heard nothing from the management or the government in response to our demands," said Hou Hongbo, a worker at the factory, according to Reuters. "The company's attitude so far is to ignore us, but the entire production remains shut down."
The workers are fighting for higher pay if they choose to transfer to Lenovo or higher severance packages if they leave the company
Hou said they are determined to keep their action going for as long as it takes to get what they want.
The current terms offered to employees at the factory in Shenzhen are "comparable in aggregate to what they currently are receiving," IBM spokeswoman Florence Ma said in an e-mailed statement to Reuters.
If workers decide to leave the company, they will receive an "equitable severance package," Ma added.
"We are hoping employees will decide to remain with ISTC," Ma said.
Lenovo has declined comment so far.
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