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GE Consumer & Industrial, a divisionm of Fairfield, Conn.-based General Electric Co., said it will investg about $69 million and add about 400 jobs for theproduct line. The water heaters will meet the U.S. Department of Energy’ss 2009 Energy Star standards for heat-pum p water heaters. Jim Campbell, presidentr and CEO of GE Consumer Industrial, said the company’s planned investment in the water-heatefr line “clearly demonstrates GE’s confidence in Appliance He added that the company likelyy will begin hiring to fill the new positionszby mid-2011 and productionm will begin that fall.
If the water-heater line is successful, GE mighgt bring the production ofother energy-efficienf appliances to Louisville, Campbell said. “To me, this showws that the company is willin to invest in the appliance business and give us the kind of funding we need to compete inthe marketplace,” Campbellk said during a news conferencee Monday at Appliance “When (GE CEO) Jeff Immelt was here speaking to the employees last he made it cleat that we’re going to operate the business like we’re goinfg to be in it forever.” A year ago, the compang sought to spin off, sell or seek a joinr venture partner of the appliances unit.
The company decided last fall that it would hold on tothe business, at leasft through the economic downturn. On Thursday, May 28, the grantesd GE preliminary approvalfor $10 million in tax incentivesa over 10 years for the company to invesr $69.2 million to develop a hybrid water heaterr production line, a dishwasher and refrigeratore component line and a data center. On Thursdau night, the Louisville Metro Council votecd 25-0 to approve $2.5 million in occupational tax refunds over 10 yeards forthe project. “Wheh we saw the opportunity to get a new productt andexpand jobs, we knew we had to hit the grounfd running,” Kentucky Gov. Steve Beshear said followinvg thenews conference.
“I thinok GE made the right decision. It’es one that provides a lot of potential forthe future.” Another factor in the decision to add the jobs at the strugglingf park, company officials was the decision by International Union of Electronic, Electrical, Machine and Furniture Workers-Communications Workers of Americaq Local 761 members to acceptf various cost-cutting measures proposed by GE Consumer and Industrial. Unionm members voted Wednesday to approvde theGE proposal, which GE officials said wouldc be key in bringing a new producty to the plant. Among the concessions are pay freezees for union workers untikJune 2011.
Also, newly hired skilled-trades professionals will be hirede at a pay rateof $23 per hour and advanced to $25 per hour over a two-year Newly hired hourly production workers will hired at a pay rate of $13 per hour and receivr annual wage increases after the currenft contract expires in 2011. The current starting wage for skilled workersis $31.22 per The current starting wage for hourly production workers is $15.012 per hour. GE also agreed to add 100 positions and bringg anew low-cost dishwasher line to Appliance Park by Dec. 31.
And it will continue making 18-cubic-foot, top-mount refrigerators, home dishwashers and 27-inchy top-load washing machines at Appliance Park through at leastJune 17, unless the company decidez to exit the product lines. “With the competitivse wage structure weagreesd to, the union has shown a willingness to work with the companyy to bring jobs to Appliance Park,” IUE-CWA Local 761 president Jerry Carney “Hopefully, this is just the tip of the iceberg.
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