Indiana GE Plant to Stay Open – For Now
February 13, 2009
 A Bloomington, Ind., General Electric plant that employs 800 IBEW members will remain open later than its original closing date, the company said in a statement Jan. 29.
GE announced in 2008 that it would shutter the factory in the first quarter of 2010. But the recent stimulus package and possibility of receiving green tax credits prompted the company to keep the plant’s doors open.
Workers at the plant assemble large side-by-side refrigerators that have recently weathered sagging sales. If GE can devise a way to make them more energy efficient, the company could receive $200 in tax credits for each unit produced.
“We’re looking at using a new ‘green’ compressor in each refrigerator that would bring the units in compliance with clean energy regulations,” Bloomington, Ind., Local 2249 Business Manager Carven Thomas said. “Right now, we’re happy for the reprieve while the company reassesses the possibility of keeping our product competitive in this tight economy.”
Thomas anticipates that the plant will stay open at least until late 2010 while the company decides what to do. He said the local is willing to look at cost-cutting practices that labor can implement to keep workers employed.
“While the tax credits will help us remain open beyond the first quarter of 2010, this is not the complete answer,” plant manager Kent Suiters said. “To remain viable for the long term, we still need to find additional ways to reduce our costs and improve our manufacturing processes.”
Since the closing announcement, about 40 workers have accepted transfers to other plants.
“We’re going to continue to operate as if they are going to close,” Thomas said. The local has sponsored adult education courses for workers retraining for new jobs and may secure Trade Adjustment Assistance benefits for laid-off workers.
Photo used under a Creative Commons license from Flickr user Mykl Roventine
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