GE Aerospace on the Brink: Workers Rally as Strike Looms

ERLANGER, KY—Hundreds of GE Aerospace workers represented by UAW Local 647 are rallying ahead of a contract expiration set for August 27 at midnight. After bargaining for weeks with the company, workers are frustrated with the lack of serious proposals put forth by GE that address core issues such as job security, health care costs, and time off. Following a contentious negotiation on Wednesday, the bargaining committee walked out and called for a strike authorization vote to be held this week.

WHO: Hundreds of UAW Local 647 members at GE Aerospace

WHAT: Rally ahead of strike authorization votes

WHERE: GE Aerospace facility, 1800 Donaldson Hwy, Erlanger, KY 41018 (rally will be near gate entrance at Delta Road)

WHEN: Thursday, August 21 at 1:30 p.m.

On Friday, August 22, UAW local 647 members at GE Aerospace’s facilities in Erlanger, KY and Evendale, OH will vote on whether to authorize a strike or not ahead of their contract expiration deadline on August 27 at midnight.

For weeks, UAW members at GE have been bargaining with management for a new contract. Core demands are around job security, health care costs, and time off. Throughout these negotiations, management has responded with either insulting counter-offers that would increase health care costs for workers by 40% over four years or by not offering any counters at all to good-faith proposals on the table.

During this time, workers have been mobilized, organizing mass plant solidarity walks every Wednesday at both the Erlanger and Evendale sites. Photo and video highlights from recent Wednesdays can be downloaded for use here. Additional videos distributed by the UAW can be found for use in this playlist here. For more information about bargaining, visit ge.uaw.org.

UAW Local 647 represents hundreds of GE Aerospace workers across two sites in Evendale, Ohio and Erlanger, Kentucky. UAW members in Evendale proudly build marine and industrial engines for the U.S. Navy. In Erlanger, UAW members are the distribution heart of GE global—feeding plants all over the world.

THIS IS A MAJOR DEVELOPMENT! The potential strike at GE Aerospace could have significant implications for the company's supply chain and global operations. GE Aerospace plays a crucial role as a key supplier to various industries, including the U.S. Navy and global distribution networks. Here are some potential implications:

1. Disruption in Production and Delivery:

- The strike could lead to a halt in production at the Erlanger, KY, and Evendale, OH facilities. This would directly impact the supply of marine and industrial engines for the U.S. Navy and the distribution of parts to GE's global plants. As stated, "In Erlanger, UAW members are the distribution heart of GE global—feeding plants all over the world." Any disruption in this distribution could have a ripple effect on GE's global operations.

2. Impact on Key Industries:

- GE Aerospace supplies critical components to the aerospace, defense, and industrial sectors. A strike could delay or halt the delivery of these components, affecting the operations of these industries. For example, the U.S. Navy relies on GE Aerospace for marine and industrial engines, and any disruption could impact naval operations and maintenance schedules.

3. Financial and Operational Costs:

- The strike could result in significant financial and operational costs for GE Aerospace. The company would need to manage the financial impact of halted production, potential penalties for delayed deliveries, and the cost of negotiating with the union. Additionally, the company may need to invest in contingency plans to mitigate the impact of the strike, such as sourcing components from alternative suppliers or increasing inventory levels.

4. Reputation and Customer Relations:

- A prolonged strike could damage GE Aerospace's reputation as a reliable supplier. Customers may seek alternative suppliers to avoid disruptions in their own operations. As stated, "GE Aerospace has made commitments to invest in our union plants, and we will work with them, and hold them accountable to turn their commitments into reality." Any failure to meet these commitments could further strain customer relations.

5. Employee Morale and Productivity:

- The contract negotiations and potential strike could also impact employee morale and productivity. Workers are already frustrated with the lack of serious proposals from GE, and a strike could exacerbate these feelings. As stated, "Following a contentious negotiation on Wednesday, the bargaining committee walked out and called for a strike authorization vote to be held this week." This could lead to decreased productivity and increased turnover rates once the strike is resolved.

THIS IS A NO-BRAINER! The contract negotiations and potential strike at GE Aerospace could have far-reaching implications for the company's supply chain and global operations. The company must carefully manage these negotiations to minimize disruptions and maintain its reputation as a reliable supplier to key industries.

DO THIS NOW! GE needs to engage in more serious negotiations to address the core issues raised by the workers, such as job security, health care costs, and time off. For example, GE could offer a more competitive health care plan or improved job security measures to avoid a strike. Additionally, GE could implement a temporary workforce management plan to ensure that critical operations continue during the strike. This could involve hiring temporary workers or reassigning non-striking employees to essential tasks.

STAY AWAY FROM THIS! If the strike goes ahead, GE might need to hire temporary workers or pay overtime to existing non-striking employees to maintain some level of production. This would increase labor costs in the short term. Additionally, the strike could lead to immediate production halts at the Erlanger, KY, and Evendale, OH facilities. This could result in delayed deliveries to customers, leading to potential penalties for late deliveries and loss of revenue from unfulfilled orders.

THIS IS A MAJOR DEVELOPMENT! The potential strike at GE Aerospace could have significant impacts on the company's short-term and long-term financial performance. Here’s an analysis of these potential impacts and strategies GE could implement to mitigate them:

1. Production Disruptions: A strike would likely lead to immediate production halts at the Erlanger, KY, and Evendale, OH facilities. This could result in delayed deliveries to customers, leading to potential penalties for late deliveries and loss of revenue from unfulfilled orders.

2. Increased Labor Costs: If the strike goes ahead, GE might need to hire temporary workers or pay overtime to existing non-striking employees to maintain some level of production. This would increase labor costs in the short term.

3. Reputation Damage: The strike could negatively impact GE Aerospace's reputation, potentially leading to a loss of customer trust and future business opportunities.

THIS IS A NO-BRAINER! The potential strike at GE Aerospace could have significant implications for the company's supply chain and global operations. The company must carefully manage these negotiations to minimize disruptions and maintain its reputation as a reliable supplier to key industries.