Over 1,000 Chinese workers at an IBM factory in tech hub Shenzen have walked out in protest at the terms of their transfer to Lenovo, which bought IBM’s commodity x86 server business for $2.3bn at the start of the year.
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Production at the International System Technology Company factory has now been suspended for four days, according to Reuters, with no end in sight.
One worker who has been employed at the factory for a decade told the news agency that IBM and Lenovo were ignoring their demands, which include higher pay if they cross over to Lenovo, or higher redundancy packages if they choose not to.
Better health and safety standards and maternity compensation are also a focus for the IBM workers’ anger.
In a statement emailed to regional news outlets IBM spokeswoman Florenca Ma said the terms and conditions being offered were comparable in aggregate to their current contracts, and insisted IBM was offering an “equitable severance package”.
Lenovo has yet to comment on the situation.