Bank’s severance deal requires IT workers to be on call for two years

http://www.computerworld.com/article/2994787/it-careers/bank-s-severance-deal-requires-it-workers-to-be-on-call-for-two-years.html

By Patrick Thibodeau
Oct. 19, 2015

SunTrust Banks in Atlanta is laying off about 100 IT employees as it moves work offshore. But this layoff is unusual for what the employer is asking of its soon-to-be displaced workers: SunTrust's severance agreement requires terminated employees to remain available for two years to provide help if needed, including in-person assistance, and to do so without compensation.

Many of the affected IT employees, who are now training their replacements, have years of experience and provide the highest levels of technical support. The proof of their ability may be in the severance requirement, which gives the bank a way to tap their expertise long after their departure.

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The employees were informed of their layoff at the end of September, and the last day of work for some is Nov. 1. This is according to several of the affected employees, who requested anonymity for fear of retaliation.

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This assistance can be by telephone or in-person meetings, and it may be provided without "additional consideration or compensation of any kind," the clause says.

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Sara Blackwell, a Florida attorney who is representing Disney workers in a discrimination complaint after they were replaced by foreign workers, said the SunTrust "contract requires them to be on call for two years, and they agree to not be paid for any time used to assist the company."

However, if the company called them and did not pay them, that would be "a clear violation of the Fair Labor Standards Act," she said. That law establishes wage standards. There may be exceptions for participation in certain aspects of litigation, but Blackwell said, "this clause is too broad" and is likely unenforceable.

Cooperation agreements are uncommon for midlevel employees; they typically apply only to C-Level executives, such as CFOs and CEOs, and then usually when there is ongoing litigation, said several attorneys who handle these types of agreements. The SunTrust severance also requires the laid-off workers be available for depositions, hearings and other proceedings.

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SunTrust has been working for a number of years with IT contractors -- including IBM and Infosys -- that have large operations in India and other foreign countries, said bank employees. Employees said the "knowledge transfer" -- the euphemism used to describe training contractors who are taking their jobs -- is well underway and is being done both over the Web and in person.

SunTrust employees said they were told to cooperate with whatever the "vendor partners" asked. The vendors have access to employee systems and are shadowing them in their day-to-day work.

Contractors with H-1B visas are also being used at the work site, according to Labor Condition Application filings, which attest to wage level and work site location.

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http://www.networkworld.com/article/2951799/careers/how-much-do-cios-really-make-pay-packages-of-25-fortune-500-execs-revealed.html

How much do CIOs really make? Pay packages of 25 Fortune 500 execs revealed

Anil Cheriyan, EVP and CIO, SunTrust Banks

Anil Cheriyan received a $2.4 million pay package last year. His pay is up 11% compared to a year earlier, when he earned $2.2 million. Cheriyan joined SunTrust in 2012 as CIO.

Salary: $500,000
Bonus: $640,500
Stock awards: $1,226,814
Perks and other compensation: $55,450
TOTAL: $2,422,764

tags: outsourcing, H1-B visa