
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, March 4, 1992                   TAG: 9203040124
SECTION: BUSINESS                    PAGE: A7   EDITION: METRO  
SOURCE: GEORGE KEGLEY BUSINESS EDITOR
DATELINE:                                 LENGTH: Medium

GE MOVING ERIE WORK TO SALEM

General Electric Co. said Tuesday it has decided to consolidate its Drive Systems operations at Salem, transferring work done at a plant in Erie, Pa. The announcement confirms a plan the company proposed in January.

GE said it has completed talks with labor unions representing Drive Systems workers and now intends to start the move by midyear.

Transfer of the Erie work is expected to be completed in 1993, the company said.

The consolidation "is not expected to create many new jobs in Salem," according to the statement.

In January, GE had said the move could add about 50 salaried jobs in sales, engineering and technical units.

But Tuesday the company said fewer jobs will be added at Salem because of its available capacity, continued product structuring and the continuing transition from hardware to software.

Tom Brock, GE's Drive Systems general manager, said in January that the intended transfer "would obviously help stabilize the employment picture in Salem." Last fall, Brock said the plant would have to eliminate waste to avoid layoffs. In February, he reported increased savings from improved productivity.

A top priority for the company will be to help the 340 employees of the Erie satellite plant find work as their jobs are lost in the consolidation, according to Ed Kitas, product general manager for the Erie operation.

The move does not affect the larger GE Transportation Systems operation, also at Erie, the company said.

GE cannot maintain two under-utilized facilities and remain cost competitive in global markets, Kitas said. The Salem plant "has the technical resources and production capacity to best meet our current and long-range business needs," he added.

The Salem plant and its 2,000 employees are operating at 50 percent capacity while the Erie plant and its 340 employees are running at 30 percent capacity, according to Kitas.

He called the shift of work "a difficult move" for the company, but he said "we believe our people recognize there is no viable alternative."

Drive Systems will focus on completing the consolidation as smoothly as possible, with the highest priority given to helping the Erie employees while continuing to serve customers, Kitas said.

The company's benefits for eligible Erie employees whose jobs will be lost include early retirement, job placement assistance, education and training options, individual placement and counseling.

by CNB