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Competitive Wage Agreement Brings New Jobs, In- sourced Work, And Improves Job Security For All Employees |
In the early 1990s, GE and the Union launched the "Save the Park" initiative at Appliance Park, changing the culture as to how to run the business. Since then saving the park has been an ongoing effort. The factories at Appliance Park continue to lose millions of dollars every year despite ongoing productivity projects. Because of this fact, in early 2005, Local 761 IUE-CWA officials and GE leaders developed a joint strategic proposal that would make Appliance Park more cost competitive and help secure a strong manufacturing presence in Louisville for many years to come. Later that year, GE and the Union signed a Competitive Wage Agreement to make the factories at Appliance Park more competitive in the global appliance industry.
Benefits
As a result of the Agreement, work that had been out-sourced is now being in-sourced. "As an example, we are bringing sub-assembly work for dishwashers that has been done at a supplier's shop back to the Park," says Allan Butler, Advanced Manufacturing Engineering Leader, Cleaning Products and Motors. "We are putting these jobs together now to do them in-house, because it makes economical sense to do so. Everyone in the appliance industry pays pretty close to the same amount for steel and plastics. So it comes down to how much labor cost is in the product. The Competitive Wage Agreement is very important for the long-term viability of Appliance Park."
More new jobs coming
As a result of the Competitive Wage Agreement, approximately 200 new jobs will be added to the Park by June 2007. "Being able to offer these job opportunities is great for the Park and especially great for the business," says Frank Whitehouse, Building 3 Human Resources Manager. "These jobs are a sign of continued growth and profitability for Appliance Park."