CBC Locals at GE Plan for Massive Mobilization in 2011 Contract Fight

Evendale, Ohio

Elected leaders from more than 25 different local unions and six unions holding contracts with General Electric met January 8 to discuss mobilization efforts in advance of this year’s national negotiations with the industrial giant.

They came together under the Coordinated Bargaining Committee of GE unions, an organization which has spent more than four decades fighting for the wages, benefits and rights of workers at GE.

IUE-CWA President Jim Clark, who serves as chair of the CBC, urged local leaders to educate their members in advance of the talks.

“Our strength at the bargaining table depends on GE understanding that our members will do whatever it takes to support their bargaining committee,” he said.

Attendees learned how GE’s new salaried health care plan Ð which GE plans to put on the negotiating table -- has vastly increased costs for its participants.

There are anecdotal stories of salaried workers paying thousands of dollars out of pocket because they chose the wrong level of health coverage and found themselves with an unexpected illness or even a pregnancy.

Though GE complains about the size of its health care bill, GE’s own numbers show that cost increases have been moderate and have remained a consistent percentage of the company’s profits.

Yet in meetings with GE CEO Jeff Immelt last fall, Immelt was adamant that significant changes to GE’s health care coverage were needed because of escalating costs.

Immelt has moved to a so-called “consumer-driven” insurance model where participants are expected to find the lowest cost providers and evaluate health care treatment options based on costs and outcomes.

UE Conference Board Secretary Steve Tormey warned that GE’s health care proposal is just another way for the company to break workers apart.

The problem comes down the road as those who have ongoing medical conditions separate themselves into the higher coverage plan and those who are younger and healthier take the less costly option.

“Eventually costs go up because your risk pool is smaller,” Tormey explained, “and you start to pit old versus young workers against each other at the bargaining table.”

Though GE’s stock price has taken a hit, the company itself is strong, as GE is showing higher profits for each dollar in sales.

While many of the locals cited health care as a primary concern, GE Conference Board Chairman Bob Santamoor cautioned that the CBC must work toward a balanced contract. “We have to think about job security and pensions and much more,” he said. “No one item is the entire contract. We can’t fall into that trap.”

UE President John Hovis praised the CBC structure for keeping union members strong. “I shudder to think what it would be like today if not for the CBC.”

Unions represented at the meeting were the IUE-CWA, IBEW, UE, IAM, USW and IFPTE.