GE to shift more work to Fort Worth locomotive plant
GE Transportation said its Pennsylvania locomotive plant fell behind on its production schedule during union negotiations and the company now plans move more work to Fort Worth, potentially costing over 100 jobs in Erie.
The company said in a letter that production at its Erie plant fell nearly three weeks behind schedule as union workers bargained for a new four-year contract, the Erie Times-News reported.
The contract was ratified less than two weeks ago and gave workers hourly raises of $1.40 and $10,000 in lump-sum bonuses. The company said it may look to subcontractors to make up for lost production.
GE Transportation said it plans to move production of 10 Evolution locomotives to its plant west of Texas Motor Speedway in far north Fort Worth this year and 50 more next year, costing the Erie plant 125 jobs. GE said the move is necessary to get Erie production back on schedule.
GE opened the Fort Worth plant in 2012 and employs more than 500 at the complex, which also produces mining equipment.
The company announced June 19 that union actions had damaged the Erie plant’s viability after a second half-day employee walkout.
Scott Slawson, president of Local 506 of the United Electrical, Radio and Machine Workers of America, which represents about 3,200 company workers in Erie, said Thursday that the company’s letter doesn’t really say anything.
“It means absolutely nothing to me,” he said. “They are not really saying anything. This is the standard GE drama. There is no comment to make on it.”
He said GE has failed to supply locomotive parts on time, contributing to some of the production delays.
The company says “parts are on time 98 percent of the time. But you can’t build 98 percent of a locomotive,” he said.
The company could cut 125 positions in Erie without layoffs. The new contract includes a provision that will let up to 500 GE workers nationwide take early retirement in 2016.
This report includes material from the Star-Telegram archives.
This story was originally published July 10, 2015 at 5:19 PM with the headline "GE to shift more work to Fort Worth locomotive plant."