trouble starting in GE world... how did russell know...
J
Wednesday June 14 2:55 PM ET
Union Turns Up Heat on GE
FAIRFIELD, Conn. (Reuters) - A union representing General Electric Co. (NYSE:GE -
news) electronics workers launched a national advertising campaign on Wednesday,
accusing GE of moving jobs overseas and of being stingy with healthcare and retirement
benefits.
``Not exactly the GE you see in all those warm and fuzzy ads,'' said the text of an ad by the
International Union of Electronic Workers (IUE) that ran in Wednesday's editions of the
New York Times and the Wall Street Journal.
The ad, featuring a photo of a smashed lightbulb, appeared as unions and GE continued their
talks in New York. A GE spokesman disputed some of the ad's charges.
Meanwhile, a local union representing nearly 3,000 GE Aircraft Engines workers in Lynn,
Mass., said it will stage a two-hour strike on Friday, to protest subcontracting and other
grievances.
The current, three-year contract between GE and 14 unions
representing nearly 40,000 U.S. workers expires on June
25.
``There usually isn't a lot of significant progress until the
end,'' said Lauren Asplen, IUE spokeswoman.
GE unions and retirees want the company, which is enjoying record profits, to impose
automatic annual cost-of-living increases. Union members also seek a moratorium on plant
closings during the life of the new agreement.
The ad campaign is ``a departure from recent tradition,'' Asplen said. ``It's mostly just to put
the shareholders and the investment community on notice that the negotiations are going on,
and (to make) people understand how significant these talks are for not only GE, but for the
labor union as a whole and for working Americans.''
``Since GE is the leading company for globalization, what's decided at this table has a much
broader impact,'' she said.
``We're in negotiations, and this is their way of raising issues,'' said Gary Sheffer, GE
spokesman. ``We've achieved nine mutually acceptable contracts (with unions over the last
30 years), and we're working toward 10.''
``But it's important to note that GE employees have shared in the success of the company,''
Sheffer said. ``As a result, GE jobs are among the best (in terms of benefits) in every
community where we do business.''
``On pensions, we think our pensions are equal to or better than our competitors','' Sheffer
told Reuters. ``On job security, we do not want to impose any artificial limits or constraints
on our ability to manage the company.''
GE members of IUE Local 201 in Lynn, Mass., will stage a two-hour strike and rally on
Friday to protest subcontracting and other issues, said Jeff Crosby, the local union's
president and a 21-year veteran of GE Aircraft Engines.
Crosby said that while the strike is not directly related to the New York labor talks, there
are similar concerns.
``Part of our frustration has to do with jobs being moved to 'low-cost poles' -- (GE's) term
for Eastern Europe, Asia, Mexico and Latin America,'' he said. ``They're in an all-out effort
to reduce production in the U.S. to take advantage of low costs in other parts of the world.''
GE, whose businesses range from jet engines to appliances to broadcasting, had 1999
earnings of $10.7 billion, up 15 percent over 1998, on record revenues of $112 billion.
GE shares were down 6/16 at 50-13/16 in afternoon trading on the New York Stock
Exchange. |
