Corporate News: GE to Cut Back Trains — Pennsylvania Plant to Lose 950 Jobs, as Some Go to Texas

General Electric Co. is planning to cut 950 jobs at its plant in Pennsylvania as well as shift one-sixth of the employment to a newer facility in Texas.  These lay-offs are a result of decreased demand in North America.  Job cuts will begin in October after a 60-day period of discussion with union leaders.  The switch was also made because the plant in Texas is 20% more productive per employee than the over-100-year-old plant in Erie, PA.

GE’s competitors, like Caterpillar, the world’s biggest maker of construction and mining equipment, have also suffered from a global slump in orders or mining equipment.  Caterpillar closed a locomotive factory in London, Ontario last year.  Jobs were relocated to a factory in Muncie, Indiana, where wages are about half of those at the London plant.

Despite a 15% increase last year in revenue by GE’s transportation business, the company has suffered as locomotive sales and mining orders have dropped.

Written by: Constantine Kostikas

Source: The Wall Street Journal

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