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GE Transportation to cut jobs as demand falls

EW YORK — GE Transportation, a supplier to the rail, marine and mining industries, said Tuesday it will permanently cut 350 workers and temporarily lay off another 1,200 amid a sharp drop in demand.

Erie, Pennsylvania-based GE Transportation, a unit of General Electric Co. that employs about 11,000 people, said that around mid-April it will permanently lay off 200 hourly workers and 150 salaried workers, all of whom work in the Erie area.

In May it will temporarily lay off 1,200 hourly workers, most of whom also work in Erie. GE expects to bring those workers back when demand returns.

The staff cuts will fall most heavily on members of the United Electrical, Radio and Machine Workers of America union, a GE official said, adding that the company is seeking to achieve the work force reductions through early retirements, attrition and restructuring.

The announcement comes amid a global economic slowdown that has lowered U.S. railroad freight, led to order cancellations and decreased company output.

“GE Transportation’s locomotive production volume at its manufacturing plant in Erie, Pennsylvania, is currently projected to be more than 40 percent lower in 2009 than in the previous year,” the company said in a news release.

“In addition, more than 50 percent of GE Transportation’s current locomotive backlog is slated for 2010 and 2011.”

An official with the United Electrical, Radio and Machine Workers of America confirmed that union members had met with GE officials Tuesday about the planned staff cuts.

“We’ll be working to mitigate the bad effects of any layoffs that may occur,” Stephen Tormey said in a phone conversation.

General Electric’s total worldwide work force is about 322,000.

Kevin Jones of The Trucker staff can be reached for comment at [email protected].