Tuesday, August 14, 2007

GE to layoff 200 employees


By Harrison Metzger and Leigh KelleyTimes-News Staff Writers

EAST FLAT ROCK — About 200 General Electric Lighting Systems employees will lose their jobs or face reassignment by February as part of the company’s plans to transfer some of its operations to outside suppliers, employees learned Monday. An additional 85 temporary workers are expected to lose their jobs as part of the changes, employees said.

The company told employees it plans to outsource its die cast production, ballast components, sheet metal and part of the assembly operation to suppliers “who can more cost-efficiently manufacture and assemble the parts,” according to a press release. The reason: To improve the company’s ability to compete in the highly-competitive, global fixture industry.

The outsourcing will begin in six months and affect 200 of the 680 full-time employees. About half the regular employees would be offered special or regular early retirement package, company officials said.

Many of the affected employees will have opportunities to transfer to other positions within the plant or to other GE facilities. Employees will have an opportunity to “generate ideas for an alternative to the proposal,” the company said in a press release.

“Never easy”GE Lighting Systems President Paul Morse said the change would enhance the plant’s ability to focus on its core strengths, photometrics and short-cycle custom assembly, and improve competitiveness.

“This kind of change is never easy,” Morse said. “If we move forward with this plan, we expect to greatly reduce the impact through our ability to reassign employees to other jobs in the plant and to offer retirement packages to those who are eligible. GE offers great benefits, and we will do our best to help our employees through this transition.”

The plan involves laying off temporary workers first, offering older workers early retirement then laying off others starting with the most recent hires, employees said.

Among those expecting to take early retirement were George Case, 55, of Saluda. Case has worked 30 years at GE, currently in the ballast department where he runs an autopress.Case said employees were disheartened by the news, particularly younger ones with homes and families to support.

“That’s what I hate is for young people with house payments and car payments,” he said as he ate supper under a picnic shelter outside the plant Monday evening. “I’ll probably take early retirement if it is offered to me.”

Another employee with seven years said he expected to be transferred to another department since the one he now works in is being eliminated. The employee, who asked that his name not be used, said the plant had just hired 20 people a month ago.“A lot of good it did them to get their hopes up,” he said. The worker, who was laid off from a previous industrial job in Henderson County after 24 years, said he expects he will take a pay cut of a couple of dollars from his salary of more than $23 per hour.

“I don’t mind that as long as I got a job,” he said. Staying competitiveManagement said the plan to outsource work will help the local plant remain competitive.“Component manufacturers supplying the lighting industry have been consolidating and reaching volume and cost positions that make some of our internal operations unable to compete,” said Morse, the plant president.

“It is critical to our business success to find ways to become more efficient and this action would help strengthen our ability to compete in the highly-challenging global lighting fixture industry.” Employees with 25 years of service laid off for more than one year will be eligible for Special Benefits Protection. This benefit provides long-service employees with continued medical and life insurance coverage at special rates and protects certain pension benefits, GE officials said.

The announcement is a blow to the community, but is necessary to help Henderson County’s largest employer stay competitive, said Bob Williford, Henderson County Chamber of Commerce president.

“We never like to see companies go through downsizing and those jobs leaving our community,” he said. “In this case, it certainly will make GE more competitive, putting them on a more competitive playing field with their product and hopefully it will allow that facility to remain a successful business and a long-term partner in our Henderson County business community.“

GE is a big supporter of United Way and many activities throughout our community,” Williford continued. “We certainly want to help them remain a competitive business that can stay here for many years to come. Unfortunately, that is getting tougher and tougher in a global marketplace.”

Labels: , ,

0 Comments:

Post a Comment

<< Home