Fighting the Attack on GOOD JOBS: IUE-CWA Brings GE Jobs Back to Kentucky

In 1969, their bargaining clout was formidable. "17,000 Strong Can't Be Wrong," was the slogan that carried them through a 101-day strike at General Electric's Appliance Park in Louisville, Ky. IUE-CWA Local 83761 members made washers, dryers, ranges, refrigerators and air conditioners. But over the years, their bargaining unit dwindled as GE outsourced more and more of their work to foreign and domestic operations.

In 1987, GE sold the air conditioner business to Trane and closed an entire building. The local lost 1,200 members through transfers, attrition and layoffs. During the years since, the company has sought every opportunity to cut costs by moving work to non-union plants in Decatur, Ga., Birmingham, Ala., and Webster City, Iowa. It moved the manufacture of refrigeration components to a non-union factory in Columbia, Tenn., and other work to Canada, Mexico, Japan and China. 

"By 2004, we were down to 2,500 members and going down fast," said local President Tommy Spires.

Determined to halt the slide, the local's officers, in a non-bargaining year, proposed a lower starting wage for new hires, to be enhanced by cost-of-living increases and contractual raises. They asked in return that GE provide an opportunity for older workers to take an early retirement. The agreement did not affect current employees, since they were already covered by the national agreement negotiated in 2003 that doesn't expire until next year.

"We looked at it as a win-win situation for our members, for the company and for the community," Spires said. Older workers would get to retire, younger workers would gain seniority and job security, the company would save money and unemployed or under-employed workers would get decent-paying union jobs with full benefits.

More than 100 retired as of February. The company brought back the manufacture of dishwasher and washing machine components from other locations — and so far has hired 350 new workers. Spires expects that will expand to 500 new jobs by next year. And the starting wage for new hires has increased to over $14 an hour.

"The best part," Spires said, "is that as long as GE continues to make the products it was making at the time of the agreement, we will be the ones making them."

Local 83761 Executive Board members and GE managers gather after signing a wage agreement that guaranteed bargaining unit work would remain at Appliance Park. At center, front, is local Pres. Tommy Spires.