IBM employment numbers reveal broken promise to Columbia, state

3 years 5 months 2 weeks ago Monday, April 27 2015 Apr 27, 2015 Monday, April 27, 2015 7:37:00 PM CDT April 27, 2015 in News
By: Lee Anne Denyer, KOMU 8 Reporter
loading

COLUMBIA - Documents obtained by KOMU 8 News late Monday afternoon confirm IBM's Columbia service center has not upheld its end of an agreement that provided the company millions in tax breaks.

In May 2010, IBM said it would hire 800 mid-Missourians to work at its center located on LeMone Industrial Boulevard in southeast Columbia. However, over the last five years a series of layoffs by the company has prompted questions into if IBM has met its expectation from the city and state. IBM has not released its employment numbers over the years citing company policies; however, documents provided by the DED outline IBM's most recent employment numbers. 

In a letter addressed to Stephen Dodd of the IBM Corporation obtained by KOMU 8 News, Executive Director Robert Miserez wrote that the agreement between the IBM Corporation and the Missouri Development Finance Board mandated IBM have at least 500 full-time employees on its payroll to keep receiving tax credits.

The letter is dated April 22, 2015 and can be read it its entirety here.

Missouri Department of Economic Development Spokesperson Amy Susan said the DED received IBM's annual report Monday outling employment numbers from January 2014 until December 2014. As of March 31, 2015, the IBM Columbia Delivery Center employed 453 full-time employees. That is 75 less jobs than reported in December 2014. IBM laid of employees in January 2015, but would not report how many employees were let go. 

The agreement between IBM, the city of Columbia and the state of Missouri is part of the BUILD Missouri Program. A program that provides financial incentives to companies in exchange for the promise of local jobs. Over the years, IBM received $28 million in tax credits from the state as part of the contract. The city of Columbia also agreed to pay $3 million over a 10-year time span to purchase the building on LeMone Industrial Boulevard and lease it to IBM at a cost of $1 per year for 10 years.

An IBM spokesperson refuted reports Monday that the service center in Columbia had lost financial incentives from the state of Missouri. 

Before KOMU 8 obtained the documents, IBM spokesperson Clinton Roswell said the site had maintained its agreement and would continue to receive its benefits, a direct contradiction to the documents.

"Contrary to reports IBM has not been notified by the state nor has any ongoing incentive program been suspended. IBM has met all its requirements to the state," he said.

Roswell said there were layoffs in January, but those were a result of restructuring within the company. An agreement between IBM, the state of Missouri and the city of Columbia required the company to meet certain employment rates.

"There's always a rebalancing of skills at IBM," he said. "That means that there's always the nature of our business is we respond, and we try to best serve our clients as a result there's a rebalancing of our work force."

Roswell reiterated IBM does not provide the number of employees hired at any given center but said the company has fulfilled its requirement to the city and state in terms of employment, training and reporting.

The documents state, "The company is not entitled to receive any further tax credits until the number of jobs at the Columbia facility equals at least 500."

(Editor's note: This story has been updated to reflect KOMU 8 New's obtainment of DED documents.)

 

Related Stories

More News

Grid
List
JEFFERSON CITY – Robert Pinhero created a GoFundMe page and is recruiting drivers to help get voters without a car... More >>
18 minutes ago Wednesday, October 17 2018 Oct 17, 2018 Wednesday, October 17, 2018 2:58:00 PM CDT October 17, 2018 in News
Cole County – From oil-dripping trucks to ones without seatbelts, Cole County Fire District officials say there's a pressing need... More >>
38 minutes ago Wednesday, October 17 2018 Oct 17, 2018 Wednesday, October 17, 2018 2:38:00 PM CDT October 17, 2018 in News
(CNN) -- At least 92 people in 29 states have been infected with a strain of multidrug-resistant salmonella after coming... More >>
2 hours ago Wednesday, October 17 2018 Oct 17, 2018 Wednesday, October 17, 2018 1:11:43 PM CDT October 17, 2018 in News
JEFFERSON CITY (AP) — In ads and speeches, Democratic U.S. Sen. Claire McCaskill is pounding Missouri voters with a single... More >>
2 hours ago Wednesday, October 17 2018 Oct 17, 2018 Wednesday, October 17, 2018 12:19:00 PM CDT October 17, 2018 in News
JEFFERSON CITY - A multi-vehicle crash sent one man to the hospital with injuries right before the Wednesday morning commute.... More >>
3 hours ago Wednesday, October 17 2018 Oct 17, 2018 Wednesday, October 17, 2018 11:42:00 AM CDT October 17, 2018 in News
JEFFERSON CITY- The man prosecutors accused of killing Lincoln University student Charon Session pleaded not guilty Wednesday morning. About... More >>
4 hours ago Wednesday, October 17 2018 Oct 17, 2018 Wednesday, October 17, 2018 10:54:00 AM CDT October 17, 2018 in Top Stories
COLUMBIA (AP) — The University of Missouri had to toss out giving its Nobel Prize winning scientist a parking space... More >>
4 hours ago Wednesday, October 17 2018 Oct 17, 2018 Wednesday, October 17, 2018 10:24:00 AM CDT October 17, 2018 in Top Stories
DES MOINES, Iowa (AP) — No winning lottery ticket was sold for the latest Mega Millions drawing, meaning the estimated... More >>
5 hours ago Wednesday, October 17 2018 Oct 17, 2018 Wednesday, October 17, 2018 10:14:00 AM CDT October 17, 2018 in News
COLUMBIA - The Columbia Police Department is looking for a suspect after an armed robbery at a convenience store in... More >>
5 hours ago Wednesday, October 17 2018 Oct 17, 2018 Wednesday, October 17, 2018 9:32:00 AM CDT October 17, 2018 in Top Stories
COLUMBIA- A new mobile pantry location through The Food Bank for Central and Northeast Missouri will open Wednesday afternoon providing... More >>
8 hours ago Wednesday, October 17 2018 Oct 17, 2018 Wednesday, October 17, 2018 6:27:00 AM CDT October 17, 2018 in Top Stories
LADDONIA—The Community R-6 School District is the second district to get new beef options added to its school menu. The... More >>
9 hours ago Wednesday, October 17 2018 Oct 17, 2018 Wednesday, October 17, 2018 6:13:00 AM CDT October 17, 2018 in Top Stories
COLUMBIA - The Columbia Police Department investigated a shots heard call on Tuesday evening. The incident happened at the... More >>
17 hours ago Tuesday, October 16 2018 Oct 16, 2018 Tuesday, October 16, 2018 10:03:00 PM CDT October 16, 2018 in Top Stories
COLUMBIA - The Columbia Neighborhood Watch recently secured funding for next year. The Columbia City Council awarded them this money... More >>
18 hours ago Tuesday, October 16 2018 Oct 16, 2018 Tuesday, October 16, 2018 8:17:00 PM CDT October 16, 2018 in News
COLUMBIA - A Columbia woman will be collecting items to transport down to Florida in order to help the recovery... More >>
20 hours ago Tuesday, October 16 2018 Oct 16, 2018 Tuesday, October 16, 2018 6:40:00 PM CDT October 16, 2018 in Continuous News
COLUMBIA – Burrell Behavioral Health introduced a medicine-first approach to its facilities in Missouri’s central region to help clients with... More >>
20 hours ago Tuesday, October 16 2018 Oct 16, 2018 Tuesday, October 16, 2018 6:40:00 PM CDT October 16, 2018 in News
COLUMBIA - Despite a wide gap in their campaign finances, Sen. Claire McCaskill and Josh Hawley remain locked in a... More >>
20 hours ago Tuesday, October 16 2018 Oct 16, 2018 Tuesday, October 16, 2018 6:20:00 PM CDT October 16, 2018 in News
JEFFERSON CITY (AP) — Missouri vehicle owners will be getting new red, white and blue license plates to commemorate the... More >>
21 hours ago Tuesday, October 16 2018 Oct 16, 2018 Tuesday, October 16, 2018 5:48:00 PM CDT October 16, 2018 in News
JEFFERSON CITY – A New York man pleaded guilty on Tuesday to two counts of attempting to produce child pornography.... More >>
22 hours ago Tuesday, October 16 2018 Oct 16, 2018 Tuesday, October 16, 2018 4:21:00 PM CDT October 16, 2018 in Top Stories
Columbia, MO
Broken Clouds 65°
4pm 58°
5pm 57°
6pm 55°
7pm 52°