No surprise that there were a lot of
E Week booster speeches about the
engineering profession. The director
of IBM’s worldwide research
laboratories, writing in Business
Week, summed up the tone of
most remarks when he said, “We
need greater cooperation between
academia, private industry, and
government to …. foster enthusiasm
and skills for the sciences.”
Unfortunately there were other
events taking place in February
that weren’t likely to engender
much enthusiasm for technical
work. Perhaps the most newsworthy
was when GM handed out a
list of job categories in its factories
which will receive 50% pay
cuts under a new national labor
contract. Only people directly
connected to the assembly line
will still get the top rate of $28 an
hour. Those handling jobs such
as engine dress, cockpit build and
subassembly in body shops, paint
mixing, and material movement
will now get $14 an hour.
And despite the words of its research
director, IBM did its part in
putting a damper on the prospects
of technical workers when on Feb.
1 it reduced the regular pay of
6% of its U.S. workforce. Roughly
7,600 workers were reclassified
as nonexempt employees as a result
of a legal settlement in which
IBM admitted no wrong doing
but agreed to pay $65 million to a
group of employees who felt they
were wrongly denied overtime pay.
“Those jobs were already being
competitively compensated based
on skills and industry competition,”
says an IBM spokesperson.
“If we had added overtime to what
we regard as competitive compensation,
the compensation would
have gone
outside competitive
rates.
So we did a remix
and took
down the base
salary.”
The salary adjustment showed
up in paychecks issued in mid-
February, coincidentally, just in
time for the kickoff of Engineering
Week on Feb. 17.
Of course, the IBM employees
affected are generally not engineers.
“They are mostly IT specialists,”
says Lee Conrad, national
coordinator for Alliance@IBM,
an IBM employee organization.
“They run and build networks and
are IT architects. They make anywhere
from $50,000 to $80,000 a
year and their educational background
includes some college
along with technical experience.”
IBM says it has no plans to do
anything similar for other job categories.
“This was specifically an
outgrowth of the legal case,” says
the IBM spokesperson. Nevertheless,
“The rumor mill within IBM
is that they will extend this action
to other kinds of employees,” says
Conrad.
The fact that pay cuts at GM
and IBM don’t directly affect engineers
is of little consolation when it
comes to convincing young people
that technical careers are worthwhile.
To youngsters, the distinction
between an engineer, an IT
specialist, and a factory worker is
fuzzy at best. After all, these people
all seem to work in similar places.
Let’s hope next year’s Engineering
Week activities aren’t trumped
by pay cuts and labor strife among
technical workers. Otherwise
E Week will be just another ineffective
PR stunt with little impact
on the career choices of young
people.
Leland Teschler, Editor