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May 27, 2005
Indiana utility shifting jobs to IBM
MERRILLVILLE, Ind. — NiSource Inc. has told many of its employees to
submit resumes for jobs with IBM as the utility prepares to
outsource possibly hundreds of jobs to the computer company.
A letter to employees this week from NiSource President Robert Skaggs Jr. told them that they had two days to seek jobs with IBM. NiSource plans to outsource jobs to IBM in a move that will be worth up to $2 billion to the computer giant over 10 years. Skaggs told employees in the one page letter that information on exactly what jobs will be outsourced will not be available until June. But interviews could begin before then. The size of NiSource’s contract with IBM indicates hundreds and perhaps thousands of jobs could be moved between the companies, The Times of Munster reported in a story today. The NiSource letter said some jobs would be eliminated, and that severance pay will be paid to those left without jobs. But workers offered positions for the same or similar pay within 50 miles of their current workplace will not be offered severance pay. “Our collaboration with IBM will result in some continuing roles within NiSource, some new positions as NiSource employees, and some job offers for employees as part of the IBM solution,” Skaggs wrote. NiSource is the parent of Northern Indiana Public Service Co., which has 700,000 natural gas customers and 430,000 for electricity. NiSource’s Indiana holdings also include Kokomo Gas & Fuel & Light Co. and Northern Indiana Fuel and Light Co. The union representing about 400 NIPSCO clerical and customer service workers has refused to allow the company to send Skaggs’ letter to its members, raising concerns about its members filling out the online questionnaire and e mailing it to IBM. “I wanted to see before they sent this letter just what jobs these people are applying for,” said Debra Birkholz, president of United Steelworkers Local 13796. “I don’t hand my personal information over to people unless I know why they’re asking for it.” Birkholz said NiSource managers have been traveling overseas to look into IBM outsourcing operations. The company has said it will not ship the jobs of people who work directly with customers overseas. But they could be outsourced domestically. NiSource spokeswoman Kris Falzone said employees were being asked to submit the profiles now so NiSource can tell them the status of their jobs in June, when the company expects to sign its contract with IBM. “We are committed to moving ahead with this initiative, to meeting the time frames we’ve established for employees, and also to treating all employees fairly in this process,” she said.
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