Union Blasts GE Decision to Close Fort Edward Plant

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FOR IMMEDIATE RELEASE – NOVEMBER 21, 2013
Union Blasts GE Decision to Close Fort Edward Plant
GE today announced its “final decision” to close the Fort Edward capacitor plant, destroying 200
jobs, and moving operations to Clearwater, Florida, where it plans to pay poverty wages of $8 to
$12 an hour. This follows the company’s refusal over the weekend to extend “decision
bargaining” with the union representing Ft. Edward workers, Local 332 of the United Electrical,
Radio and Machine Workers of America (UE) beyond the 60 days mandated by the UE-GE
National Contract.
Despite the union’s best efforts and 17 bargaining sessions over the past two months, the union
says it was clear that GE never intended to seriously negotiate over saving the Ft. Edward plant.
Throughout those 60 days, GE dragged its feet on providing information the union requested and
was legally entitled to; made no effort to involve its business leaders in the bargaining; and made
no proposals to save the plant. GE was just going through the motions to fulfill its legal and
contractual obligations and never seriously considered any alternative to moving to Florida.
Early last week the union made creative proposals to establish a partnership between the union,
GE, and the public to save the plant. The union proposal contained substantial sacrifices – the
loss of almost 10 percent of the union jobs in the plant which would result from modernizing and
automating – as well as $22 million dollars in government financing to keep the plant viable and
operating for the foreseeable future.
GE scoffed at this proposal and told union negotiators that it wanted more than $6 million per
year in labor cost savings in addition to what the union proposed. Based upon that statement, the
union says it was obvious that GE would accept nothing less than a wage cut of $17.88 an hour
for the 163 workers who would have been retained. “GE is extremely profitable in Ft. Edward
and elsewhere and has no justification for insisting that we work for $11.12 per hour,” said Local
332 President Scott Gates.
In Clearwater, GE intends to pay poverty wages of $12 per hour to those it hires as regular
employees and $8 per hour to contingent employees. “Working at poverty wages for this
powerful and extremely profitable corporation, GE’s Clearwater employees will undoubtedly
need to rely on public assistance, food stamps, and other social welfare programs to survive and
feed their families, even as they produce sophisticated electrical devices for a variety of
industrial applications,” said Gates. “The taxpayers of the U.S. and of Florida will once again pay to subsidize the profits of GE, a company that pays next to nothing in taxes.”
The union alleges that GE, which claims to be a good corporate citizen, intends to use public revenues and social programs to soften the blow of its aggressive campaign to slash the wages of its U.S. manufacturing workers and make even greater profits. GE calls its low-wage strategy “the competitive wage.”
“It didn’t have to end up this way,” said Gates. “Our elected officials – especially Governor Cuomo – should have played a prominent role in leading the fight to save these good-paying manufacturing jobs. Unfortunately, Governor Cuomo’s office was nowhere to be found. Despite our repeated efforts to engage him, Mr. Cuomo’s office only agreed to meet with us after the bargaining ended. During one brief phone conversation, a Cuomo staffer threw up his hands and callously told us ‘They want to move to Florida, I can’t stop them.’” Cuomo’s involvement “was much too little and too late,” said Gates.
Based on the union’s exchange with Cuomo’s office, the union believes that GE officials “poisoned the well by telling public officials in September, before bargaining even started, that its plan to move to Clearwater was a done deal.” In doing so, the union says GE’s goal was to prevent public officials from joining in a serious effort to block the move to Florida.
“We wonder whether the Cuomo administration will now also let GE out of its obligation to clean up the Hudson River,” said Gates. “The river was poisoned by GE over 30 years of dumping highly-toxic PCBs from the Ft. Edward and Hudson Falls plants, and GE spent years lying about the harm it did and evading its responsibility. Will the Governor now let GE off the hook for this deliberate environmental disaster, just as he is sitting idly by while GE shuts down a profitable plant that contributes $35 million in annual revenue to the Washington-Warren-Saratoga County area?”
On September 18, GE gave the union a one-year notice, as required by the union contract, of its intention to close Ft. Edward. The parties then began a 60-day period of “decision bargaining”, also mandated by the contract. Through delays, the company frustrated the union’s efforts to obtain information it needed to formulate a response and to propose an alternative plan to keep the plant open while increasing its efficiency and profitability.
Local 332 is today in discussions with the UE national union to develop a comprehensive plan to continue the fight to convince GE to reverse its decision and keep the Ft. Edward plant. “This fight is far from over,” says Scott Gates, the local union president.
For further information, contact Local 332 President Scott Gates at 518-496-8608 or UE Northeast Region President Peter Knowlton at 774-264-0110.

UE Local 332 Statement on the Conclusion of Bargaining with GE To Save Our Plant

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UE Local 332 Statement on the Conclusion of Bargaining with GE To Save Our Plant

HUDSON FALLS, N.Y. — “It is clear to us now that GE is just going through the motions to fulfill a legal and contractual obligation and never seriously considered an alternative to moving to Clearwater Florida,” said Scott Gates, Local Union 322 President.

Union officials, clearly discouraged, frustrated, and disappointed by the negotiations process.

They say GE never put forth a proposal during the negotiation period.

“It wasn’t much of a negotiation. It takes two sides to negotiate and only one side was willing to bargain and that was the union,” said Gene Elk, UE International Representative.

Earlier this week, the union proposed a plan that would’ve cut 10% of its staff, and included securing more than $20 million in State Aid to update equipment in the plant.

They wanted an additional $6 million per year in labor cost savings, on top of the $22 million in public financing that we were offering to try and acquire for the facility.

Elk says that would’ve meant a wage cut of $17.89 an hour per employee.

Union officials expressed significant disappointment in elected officials, especially governor Cuomo. But vowing to continue their fight, they said they’ll continue to push elected officials to do what’s right.

“Even though we’re really disappointed in the Elected Officials outside of this town and we’re going to keep pushing them hard because they have an obligation to this community to do the right thing and to defend these decent factory jobs,” said Peter Knowlton, UE NE Region President.

Christine Horne, a spokesperson for GE says in a statement to YNN that the proposed closure and move to Clearwater is designed to reduce costs and help the company remain competitive, and as it stands, the union’s proposal falls well short of achieving the savings and efficiencies that would be generated by the proposed move to Clearwater. She adds that no final decision has been made by GE.

 

 

 

GE submitted the following statement Sunday:

This afternoon, we concluded our meetings with the union because they informed us that they did not have additional proposals to discuss.

The union’s allegations about our engagement in decision bargaining are completely unfounded. We have negotiated in good faith for 60 day and have taken the bargaining process extremely seriously.

As it stands, the union’s proposal falls well short of achieving the savings and efficiencies that would be generated by the proposed move to Clearwater. These savings and efficiencies are required to address the fact that we are losing money and to make us competitive long-term in the marketplace.

We have given the union detailed feedback on their proposal and have been specific about the cost savings needed to be generated.

We have told the union that we remain ready and willing to review alternative proposals and continue discussions at any time through tonight should they wish to contact us. The decision bargaining period ends Sunday at 11:59 p.m.

We have not made a final decision.

Upon conclusion of the bargaining period, we will take the time to thoroughly review and consider everything that’s been presented to us and discussed over the last 60 days before announcing a final decision. After we make a decision, we will notify the union and our employees first.

Bob Herrick and Scott Slawson Matt McCracken Roger Zaczyk Steve Hyzer

 

 

 

 

 

 

 

 

UE Local 506 Officers and Members Picket with Local 332 at their Rally in front of the GE Fort Edwards Plant

Statement of Condolence

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Brothers and sisters,
Due to the recent tragedy that occurred in the plant on Friday, November 15, we
ask that you give all respect to the family of the employee who lost his life. This
is no doubt very unfortunate and we, as a union family, are deeply saddened by
what has occurred.
We ask that you keep him and his family in your prayers and continue to focus
on the job that you do. In times like these, it’s important that we give comfort and
support to each other and most of all to the family of the deceased.
Thank you,
UE Local 506
Officers and Executive Board Members

Toy Drive

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UE Local 506 Toy Drive
November 15th – December 12th
We are collecting toys and monetary contributions for our Annual Toy Drive. You can give contributions to your Union Steward, Chief Steward or at the Union Hall.

Union Vows to Continue Effort to Save 950 Jobs Despite GE’s Rejection of UE’s Offer

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Press Statement from UE Local 506 President Scott Duke

June 23, 2013

Even though tonight we were not able to reach an agreement, our union remains committed to saving the 950 jobs which GE is proposing to move to Texas.  We are now evaluating all possible options and UE officials will be speaking with company officials Monday.

Two years ago we negotiated an agreement with GE getting modest wages increases and in exchange made deep and painful cuts to health care and pensions.  GE made a deal with us and tonight we rejected their attempt to renege on that deal.

Even though our primary focus was on saving jobs, we did place $26 million in savings in work rules and efficiency on the table which the Company rejected.

GE Transportation made billions of dollars largely from our labor and leads the world in locomotive production, winning GE business of the year.  We helped them win the Super Bowl and all along they were planning to fire the team.

They engaged in the secret transfer of work while we were helping them make those profits.  This whole bargaining process was an attempt to get us to approve something that they had already started to carry out.

We met with our members last week and they strongly instructed us not to accept the wage freezes, two-tier wages, mandatory overtime, and other types of wage cutting demanded by GE.

Under the terms of our contract, GE is not permitted to transfer our work until October 2013 so we are not closing the door on future negotiations.

We are going to quickly bring our leadership together and evaluate our next moves including pursuing existing NLRB charges, additional legal challenges, and all possible labor actions.

We remain as committed to preserving our jobs as GE is committed to increasing its profits.  For us it’s about families and the community that made GE great over the past 100 years.

 

 

 

 

 

May 31st Day of Action

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MAY 31 DAY OF ACTION

 

At its May 16-17 meeting, the UE General Executive Board adopted a “Statement of Solidarity” with Local 506 that called for support from all UE locals, starting with a day of action on May 31 in all three UE regions. In the Northeast Region, dozens of demonstrators rallied at GE’s corporate headquarters in Fairfield, CT. Petitions with more than 10,000 signatures were presented to a GE representative outside the guarded entrance, along with a “Keep It Made in Erie” T-shirt for GE CEO Jeff Immelt. Participants came from UE Locals 203, 243, 274, 279, four sub-locals of Local 222, and included a Local 332 contingent who arrived by motorcycle from the GE plant in Fort Edward, NY. UE Local 506 members Lee Singleton and Terry Gigax came from Erie to help lead the Fairfield picket, and leaders of several UE locals spoke, as did Director of Organization Bob Kingsley and Northeast Region President Peter Knowlton.

 

Also on May 31, 40 people rallied at the headquarters of GE Transportation in Downtown Chicago, including members of Local 896, 1103, 1166, 1177, Warehouse Workers for Justice, Chicago Teachers Union, Workers United and Jobs with Justice. Two Local 506 members, Bill Bane and Joe Bradney participated, as did UE Secretary-Treasurer Andrew Dinkelaker. A delegation of four went inside and met with a human resources manager and delivered petitions with thousands of signatures.

 

The Day of Action in Erie was three actions, as members participated in plant gate shift rallies at 7:00 a.m., 1:30 and 3:00 p.m. Combined turnout for the three events was in the thousands. GE workers were joined by members of other UE locals and other unions, and the rallies were chaired by Eastern Region President Deb Gornall. “We need to tell this company, ‘You stole our work, bring it back!” UE General President Bruce Klipple told members, and he added, “We’re in the fight of our lives, and your national union will do whatever is needed to help you.”

 

Gene Elk blasted the company’s illegal movement work to Texas before giving the union notice, and for showing no interest at the bargaining table in saving jobs. “We’ve met with them 10 times now, and we’ve wasted time” discussing such things as the attendance policy, even though the company admits that if it got the changes it wants in attendance rules, it would save no jobs.

“Every day we’re in negotiations we ask them how we’re going to save jobs,” Elk continued. “And this company has not put forward a proposal to save even a single job.” Elk said the union suspects that the company would try to squeeze union members and take back the wage increase that is due on June 24. He asked members for their answer to that, and each time the crowd roared, “No!”

Local 506 President Scott Duke said “The community has embraced this local like I’ve never seen before. When I walk in a store with a UE shirt on, strangers come up and tap me on the shoulder and say, ‘Thank you, we’re with you.’” Duke added, “Our proposal is to keep these 950 jobs. That’s our proposal! Anything else ain’t gonna happen. Wage freeze? Not going to happen. We earned and fought for those wages. They’re union wages.”

 

LEGAL FIGHT

 

In addition to its efforts in the community, that workplace and at the bargaining table, the union has taken legal action against GE’s attack on jobs. By transferring work prior to giving the union notice and the opportunity to bargain, says UE General Counsel Joseph Cohen, “The company has violated both the National Labor Relations Act and the contract.” So in addition to grievances filed by the local, the national union has filed unfair labor practice charges. “We feel like we have pretty strong evidence,” says Cohen, “but our optimism has to be cautious because history as shown us that the National Labor Relations Board and the federal courts are not exactly friends to workers.” Three Local 506 divisional chief stewards – Scott Slawson, Bob Herrick, and Giovanni Caputo – have given affidavits to the NLRB detailing the company’s movement of jobs, and Gene Elk has also given an affidavit. “We’ve submitted several position statements and we continue to present the labor board with evidence as they conduct their investigation,” Cohen added. The union is asking the NLRB to seek an injunction against GE, under Section 10(j) of the labor act, because the illegal movement of work has placed the union at an unfair bargaining disadvantage. “We’ve been put in a position where not only do we have to negotiate to try to save jobs six months from now, but we have to negotiate to try to save jobs that have already left. That’s bad faith bargaining by the company,” Cohen concluded.

Keep it made in ERIE!

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“Keep It Made In Erie!”

Local 506 in Jobs Battle with GE

Erie, PA

Local 506, the largest local in UE and one of the oldest, is now in a major battle with General Electric over jobs. The local’s 3,500 members manufacture locomotives and electric wheel motors for off-highway vehicles (OHV) – giant mining trucks. On April 9, management of GE Transportation announced that it intends to transfer a substantial amount of work from Erie to a newly-built non-union plant in Fort Worth, Texas, and to lay off 950 UE members later this year.

GE’s announcement came after months of deliberately misleading Local 506 and the Erie community. The company had insisted that Ft. Worth would be an “overflow” plant that would not cost Erie any jobs. Despite its earlier claims, GE had already begun to move both locomotive and OHV work to Texas long before its April 9 announcement.

GE pays substantially lower wages in Fort Worth than in Erie, and this job transfer is part of its self-proclaimed “competitive wage” strategy, aimed at driving down the incomes of GE’s manufacturing and other workers to near-poverty levels. The attack on Local 506 comes despite GE Transportation – GE’s Erie-based division – making record profits in 2012. After the division’s profits more than doubled between 2010 and 2011 to $757 million, they grew another 36 percent in 2012 to $1 billion. For the first quarter of 2013, GE Transportation profits were up another 15 percent.

In 2012 GE made $8.4 billion in profit. A major contributor to GE’s profitability was GE Transportation, for which GE named the transportation division “business of the year.” The head of GE Transportation walked around the Erie plant showing off the trophy that came with that title – the result of the hard work of Local 506 members.

GE CEO Jeffery Immelt chaired President Obama’s “Jobs and Competitiveness Council”, whose stated purpose was creating jobs in the U.S.  “GE says is it is dedicated to reviving American manufacturing and our economy,” said UE’s National President Bruce Klipple. “But what GE has done is close 40 factories in the U.S. in the last five years. And GE is conducting a so-called ‘competitive wage’ campaign to cut workers’ pay by as much as 50 percent.” At the same time GE is cutting wages, Immelt received an 80 percent pay raise, bringing his 2012 compensation to $20.6 million.