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2008 GE RIVER WORKS FORECAST
UNION PRESSES CONCERNS ABOUT GEAR PLANT, TOOLING,
“DOWN” MACHINES AND FARM-OUT
On Tuesday, Nov. 13,
2007, the Plant-wide Job Preservation Committee (per Article XXII)
met for over 4 hours reviewing and discussing investment, orders,
productivity, farm-in, farm-out and employment forecasts for 2008.
The Committee includes the entire Local 201 GE Union Grievance
Board, all Section C.O.E. leaders, HR, UR, and the Plant Manager.
Local 201 Business Agent Ric Casilli, and
President Jeff Crosby, (along with other Local 201 Board
members and Officers) gave a detailed report to last week’s November
20th monthly Membership meeting.
Local 201 expressed enthusiasm with the continuing
increased investment into the River Works. The Company announced
that investment in 2008 was expected to come close to $36
million. That is more than triple compared to yearly
investment figures from 2000 through 2004. Also, another $14
million of investment is expected in Lynn Engineering.
Despite this, Local 201 also expressed deep concerns
over the future of the Gear Plant, and some tooling, machine
and farm-out issues negatively impacting employment figures
plant-wide.
The Company
presentations on employment numbers for Plants I, II, and IV, LPDD,
Logistics, Site Service Operation and Plant Services forecasted just
a net increase of only 3 jobs. The Union pointed out that the
Company’s current 2008 Forecast for the Gear Plant is a minus 86
jobs with most losses anticipated in the 3rd and 4th
quarters of 2008.
Local 201
presented a graph (done by Board member Jeff Francis) showing
that the number of Local 201 jobs has continued to erode from
1998-2007, although the erosion has been much smaller the last
couple of years. Business Agent Ric Casilli summarized to
the Company, “This is worrisome in 2008 as your figures are
showing an additional loss of 83 jobs plant-wide in 2008 connected
to the situation in the Gear Plant. The number of jobs plant-wide
is a critical metric for Local 201.”
Local 201 then expressed displeasure with the number
of machines “down” in Plant IV and the ongoing tooling shortages.
The Company indicated that they had a current delinquency problem
and some farm-out was being considered. Local 201 pressed the
Company to fix the machines, address the tooling problems, and to
keep all the work in-house in hopes of adding jobs in Plant IV and
other areas of the plant. This would help alleviate job losses
coming out of the Gear Plant.
The Company indicated a willingness to sit down with the
Union and discuss any proposals to try and address the Gear Plant
and the entire River Works employment situation. That is expected
to happen in December 2007, and in January 2008. The Company made
it clear that the continued large amounts of investments in new
machinery, test cells, equipment and plant infrastructure was
contingent on keeping Direct Labor Productivity moving in a
positive direction and continuing cooperative efforts.
If any shop Steward
or members has some specific ideas on dealing with this job
situation, please pass them on to the appropriate union channels.
Below are some specific points the Company made in their 2008
Forecast presentation to Local 201. It is also expected that the
Company and Union will be meeting soon regarding the initiation of
some new after-hours courses for members.
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Investment in Lynn has more than tripled the
last 3 years compared to the 2000-2004 period.
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Investment, says the Company, is tied to
improving Direct Labor Productivity.
PLANT I (Manager Dan DiBattista)
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2008 Employment to be stable.
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Investment to go up from $6 million to $7 million (new
lathes, mill/drill, grind, broach,
and inertia weld machines.
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Some big volume in T700 and CF34-10 parts.
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Additional 20,000 hours of work anticipated in 2008.
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Union raised that more training is needed on basic shop floor
practices regarding quality.
PLANT II (Manager Randy Brown)
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2008 Employment stable…may rise by 2.
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$5 million investment forecasted (new NC VTL’s, C-Weld
machines, laser drill, NC VMC and NC water jet cutting machine.)
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Lynn Plant II expected to go from 50% to 70% of the CF34-8
volume split with Romania.
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Good volume in 2008 of CFM56, GE90 and LM work.
PLANT
IV (Manager George Poulopoulous)
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2008 Employment stable.
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$5.2 Million investment forecasted.
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Total of $2.8 million for tooling.
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Increased labor hours of work in 2008 from approx. 498,000
hours to 535,000 hours. [Note: However, with farm-out currently
planned and Direct Labor improvements – would be only approx.
510,000 plus hours.]
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New F404 and JSF parts, increasing volume of CFM56 and
CF34-10 work.
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Productivity good but 2007 current delinquency problem.
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Union strongly opposes the farm-out being planned.
(Plenty of capacity, if serious tooling and machine “down” problems
were addressed.) A meeting has been scheduled on Nov. 28 with the
Company to discuss details. Board member Fred Merchant, BA, and
Plant IV Stewards to attend.
LPPD (Assembly & Test) (Manager Christine
Callahan)
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2008 Employment stable.
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Increased investment from $5 million to $8 million in 2008.
(Balance Machine Controls, F414 Stator Grind, CT7 PT Rotor Grind)
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2008 Volume increases of 10,000 hours expected (led by T700
and CF34-8C).
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Development work increasing – Honda engine, JSF Core Rig,
GE38, GE3000 AATE, (renovation of Test Cells for GE38) Lynn
Engineering investment of about $14 million.
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Parts shortages hurting and drop-off of Direct Labor
Productivity. Need to turn this around in 2008.
GEAR PLANT (Manager Mark Allard)
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2008 Employment anticipated to drop from 137 to 51 (minus 86)
– especially in 3rd and 4th
quarters of 2008.
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Investment dropping from $1 million to $0.22 million.
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Additional CVN and LCS orders have not materialized and DDG
program is ending. Electric Drive replacing gears on new class
destroyers and cruisers.
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Union and Company to continue to meet in attempts to deal
with this difficult situation.
LOGISTICS (Manager Jim Divincenzo)
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2008 Employment stable (maybe up 1).
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2008 Investment increase to $1.7 million from $0.63 million.
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Volume increase in T700 upgrade kit. Looking for
productivity increases here.
SITE SERVICE OPERATION (Tool & Die, Cutter Grind,
Gauge Room)
(Manager Frank Dunion)
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2008 Employment stable.
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2008 Investment up from $0.4 million to $0.75 million. (New
CNC Miller, Surface Grinder, Torque Tester, Laser Mic, Large
Diameter Grinder.)
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New surface grinder should help with farm-in.
UTILITY AND PLANT SERVICES (Manger Bill Currier)
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2008 Employment stable.
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2008 Investment approx. $8 million.
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Finish Bldg. 74 and possibly new roof.
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Energy conservation is an issue.
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