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Hundreds of workers at IBM’s sever plant in China walked out of their jobs recently over worries of reduced wages and job cuts once Big Blue’s x86 server business is turned over to Chinese PC manufacturer Lenovo Group Ltd.

Several weeks ago IBM announced plans to transfer the ownership of the factory to Lenovo. Some 1,000 workers in the facility, however, staged a protest against the sale and IBM’s offer to either transfer employees to Lenovo or provide them with a severance package.

Some of the employees have been working in the factory for 10 years or longer and many are demanding a better compensation package. They are also worried that Lenovo will begin cutting jobs after it takes over the facility.


The protest began last week and by Tuesday some of the striking workers had decided to leave the company while others returned to work.

A report by the online technology publication PCWorld said some 100 workers are still protesting outside the factory. At its height, the protest drew more than 400 people according to some strikers.

One worker who was identified only as Luo, said she was among 20 people who were fired on Monday for violating company rules by taking part in “illegal gatherings” during the protest.

She said management did not give workers the chance to discuss the transition to Lenovo.

Luo said management later offered bonuses to employees that returned to work, but others decided to take the severance package.

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