GE Union Workers Reject New Labor Deal -- 2nd Update
July 10 2019 - 2:29PM
Dow Jones News
By Thomas Gryta
General Electric Co. workers voted against a new four-year
contract, surprising the conglomerate and union leaders who had
negotiated the agreement last month and likely sending them back to
the bargaining table.
While a majority of total votes cast were in approval of the
contract, numerous local unions voted against the deal. Under the
union's rules, there was enough of a protest vote to reject the
contract.
"We will be contacting GE to notify them of the results. GE's
obligation to bargain continues," said the IUE-CWA, the biggest
union that led the negotiations. The vote was thrown into confusion
late Tuesday as some local unions celebrated an apparent rejection
while union leaders and lawyers determined the next steps.
The contract, negotiated by a group of 11 unions covering about
6,600 workers, sought to maintain a labor peace as the struggling
conglomerate restructures its operations. The union-represented
workers are in various industrial divisions, including aviation,
health care and power, in facilities across the country.
While union leaders endorsed the deal in Cincinnati last month,
members in some local groups were openly upset about the terms of
the deal, including higher health-care costs. The workers contend
that they have sacrificed a lot in recent years and that GE's
leadership has mismanaged the company.
In a statement late Tuesday, the IUE-CWA said 53.2% of votes
were for approval of the contract and 46.8% were against it. But
the rules that govern the union group require that votes are
counted by location, as measured by a simple majority. If a site
votes to reject the deal, that means that the vote of every local
union member is counted as a rejection. On that basis, only 44.2%
of the votes were for approval and 55.7% were against the deal.
GE said it is working with union leaders to evaluate their
options. "We strongly believe the contract is a good package for
employees, and a majority approval vote of IUE-CWA membership
reflects that," the company said.
The contract is being watched by more than just the members of
the union because some GE nonunion sites follow the terms of the
agreement, including changes to health-care benefits, at many
sites, according to union officials and nonunion workers.
The rejection is a surprise after the contract easily passed
four years ago with an 84% margin of victory.
Leading up to the vote, some members campaigned against it on
social media, while GE sent numerous emails and bulletins over the
last two weeks highlighting the terms in a positive light.
On Monday, the IUE-CWA, the industrial division of the
Communications Workers of America, posted on Facebook that members
shouldn't "listen to rumors in the shop or on social media," noting
that official information would come in leaflets or meetings.
The previous agreement expired in late June but both sides
agreed to extend its term while the tentative contract was
ratified.
The agreement includes several hourly wage increases over four
years and comes as the sprawling company is selling off pieces of
itself. Four years ago, the same union talks covered about 16,500
workers, but GE has since sold its transportation division and its
appliance division.
Under Chief Executive Larry Culp, the first outsider to lead GE,
the company is also in the process of separating its oil and gas
business and a major portion of its health-care division.
Meanwhile, GE's once-reliable quarterly stock dividend has dwindled
to a penny per share.
The company incorporated its challenges in its labor
negotiations by pushing to cut health-care costs and adjust
benefits.
Write to Thomas Gryta at thomas.gryta@wsj.com
(END) Dow Jones Newswires
July 10, 2019 14:14 ET (18:14 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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