6 June, 2011
Ten US trade unions, working together as the Coordinating Bargaining Council (CBC) of General Electric (GE) Unions, are negotiating with the industrial and financial giant toward a 19 June expiration of a four-year agreement covering 15,000 workers.
The ICEM-affiliated United Electrical, Radio and Machine Workers of America (UE) and the International Union of Electronic Workers/Communications Workers (IUE/CWA) are the largest US unions at GE, representing 11,000 industrial workers. Collective agreements for the UE and IUE are national in scope.
UE Local 506 in Erie, Pennsylvania, hosted a CBC rally on Saturday, 4 June, in which a larger-than-expected gathering of 4,000 trade unionists took part. The bargaining manifestation was held at Gannon University in the western Pennsylvania city.
UE-led Bargaining Rally in Erie, Pennsylvania, on 4 June
Negotiations began in New York City on 24 May and after five rounds of bargaining it is evident that pension issues and health care costs have become the main agenda items. GE is trying to separate all new hires from a defined pension plan and shift them to an inferior plan. It also wants higher cost-sharing on medical insurance from workers and introduction of inferior option plans. The unions and GE resume bargaining tomorrow, 7 June.
In opening bargaining statements delivered on 24 May, UE President John Hovis spoke of GE’s role in the financial crisis in which a bursting real estate bubble and accompanying credit crunch had dramatically cut GE’s stock price, its dividend payouts, and loss of GE’s AAA credit rating. Hovis reminded GE executives they had “lectured more than once in past negotiations” how GE Capital represented a more important and profitable component of the company than its industrial and manufacturing businesses.
“The irony did not escape UE members when in the wake of the crisis, GE scrambled to persuade investors that it should once again be viewed as an industrial company,” Hovis said.
Despite the crisis, GE is faring well in the marketplace and American unions will resist any rollbacks to pension schemes and health care costs. And they will seek a significant yearly wage increase and cost-of-living improvements. GE paid out three dividends to shareholders in the past year and recorded US$14.2 billion in gross profits in 2010. GE’s cash surplus was US$82 billion in first quarter 2011, and UE claims GE workers produced an average of US$42,000 each in net profit for the company last year.
View a UE YouTube video of 2011 bargaining here.
The CBC of GE Unions in the US consists of the UE, the IUE/CWA, International Association of Machinists (IAM), NABET/CWA, the United Steelworkers (USW), the United Auto Workers (UAW), the International Federation of Professional and Technical Employees (IFPTE), the Electrical Workers (IBEW), Sheet Metal Workers Union (SMWIU), the United Association of Plumbing and Pipefitting Union (UA), the Firemen & Oilers division of the Service Employees Union (SEIU).
The national set of talks for UE is occurring on behalf of GE Transportation workers in Erie and for GE Energy staff at Fort Edward, New York, while the IUE/CWA has a common pact for GE Aviation in Lynn, Massachusetts, and GE Appliances in Louisville, Kentucky. Simultaneous bargaining for single-site agreements with the same 19 June expiry date also continues for the UAW and IAM at GE Aviation in Cincinnati, Ohio, as well as at some 30 other GE worksites, including plastics and chemical operations.
Jim Clark, the head of IUE/CWA, is chairman of the CBC.