Lenovo has agreed to buy IBM’s x86 server hardware business and related maintenance services.
A group of around 1,000 workers at an IBM factory in China are on strike as the company plans to transfer the computer server factory at Shenzhen to Lenovo as part of the $2.3bn deal signed earlier in 2014.
PC maker Lenovo has agreed to buy IBM’s x86 server hardware business and related maintenance services.
The acquisition includes System x, BladeCenter and Flex System blade servers and switches, x86-based Flex integrated systems, NeXtScale and iDataPlex servers.
Reacting on the strike, the employees said they want higher salaries if IBM plans to transfer them to Lenovo or higher severance packages if they select to leave.
According to the New York Times, IBM said that it hoped workers for the wholly owned subsidiary being sold, International Systems Technology Company in Shenzhen, would be willing to continue working for Lenovo but that it would offer them compensation if they did not accept the new employer.
"Employees currently involved in x86 operations in Shenzhen have a personal choice of remaining with I.S.T.C. under terms and conditions comparable in aggregate to what they currently are receiving, or they can voluntarily choose what we believe is an equitable severance package and resign from I.S.T.C.," the IBM statement said.
Strikes are becoming common at Chinese factories when the units are sold to new companies due to fear among workers that they will be forced to leave their job.
In November 2013, several employees stopped work at a Nokia factory in Dongguan over the company’s move to sell its mobile phone business to Microsoft.