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Local 506 Proposes Keeping All 950 Jobs, $20 Million in Savings to GE, No Pay Freeze

18 June, 2013

A new bargaining bulletin from Local 506 reports on a proposal the union presented to GE yesterday. Local 506 negotiators Wayne Burnett, Scott Duke, Mike Hayes and Mike Ferritto were joined by UE General President Bruce Klipple for the June 17 session, as well as International Rep. Gene Elk. The bulletin (which you can download from the link below) says in part:

"On Monday, the UE Local 506 Negotiating Committee met with GE and submitted a detailed proposal. UE proposed that the Company retain all 950 jobs in Erie and keep Ft. Worth as an overflow plant to produce locomotives and OHV wheels only when Erie is producing at capacity. Union bargainers submitted a detailed list of cost savings under which GE can save more than $20 million per year in 2013 and 2014. Savings will be achieved by correcting the parts-flow issue in the plant, reducing absenteeism, rearranging the break schedule, and eliminating costly severance and retraining costs that would be caused by the job cutbacks which GE proposed on April 9. The Union’s proposal requires the Company to guarantee that none of the 950 jobs can be moved prior to June 21,2015, when the UE-GE National Agreement expires."

The union update goes on to say that the local also proposed a  new investment for the off-highway vehicle (OHV ) business in a state-of-the-art machining center in Building 12. GE’s investment for the new machining center would be matched by government funds

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