GE Employees to Strike Over Health Care

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GE Employees to Strike Over Health Care

By THE ASSOCIATED PRESS

The NY Times, January 8, 2003

IUE-CWA President
Edward Fire

FAIRFIELD, Conn. (AP) -- Thousands of General Electric Co. workers will conduct a two-day national strike next week to protest an increase in health care copayments, GE and union officials said Tuesday.

Union officials say as many as 20,000 employees -- at plants that build appliances, power turbines and jet engines -- will strike Jan. 14 and 15. It would be the first national strike at GE since 1969.

GE said it received strike notification from The International Union of Electronic Workers/Communications Workers of America, which represents about 13,900 employees, or 5 percent of GE's work force.

The United Electrical Radio and Machine Workers of America, which represents about 5,000 GE employees, will go out on strike at the same time as IUE/CWA, said Stephen Tormey, the union's secretary.

On Jan. 1, GE said it increased four co-payments for employees participating in the GE Health Care Preferred plan by about $200 per employee in 2003. GE's average health care cost per employee is expected to be $2,350 higher in 2003 than in 1999, GE said.

``GE provides some of the best health care benefits to our employees at a reasonable cost,'' GE spokesman Gary Sheffer said. ``However, we've seen health care costs go up dramatically and we've asked employees to share a modest portion of that in 2003.''

Union officials said the co-pay increases will cost the average worker an additional $300 to $400 annually and that GE will have shifted more than $43 million in costs to workers and retirees. Older workers will be especially hard hit because they rely on prescription drugs and other medical services, union officials said.

``We think corporate America, of which GE is a leader, is using the health care crisis as an excuse to shift more and more costs on retirees and active employees,'' Tormey said.

GE said it will meet customer needs during the strike.

GE said its health benefits remain among the best in the industries in which GE competes and in the marketplace. The number of GE employees enrolled in the Health Care Preferred plan increased last fall after the changes were announced, GE said.

Ed Fire, president of IUE/CWA, said GE makes $16 billion in profits and its top executives make millions of dollars.

``I don't know how these people look themselves in the mirror,'' Fire said. ``They fired a shot across our bow. We're just returning fire, so to speak.''

The last national strike by GE employees was in 1969 when workers were off the job for about 14 weeks.

The strike will affect 48 locations in 23 states working in GE's appliance, lighting, power systems, aircraft engine, consumer and industrial repair, industrial systems, plastics and transportation businesses, union officials said. Major manufacturing plants that would be affected by the strike include those in Lynn, Mass.; Erie, Pa.; Louisville, Ky.; Schenectady, N.Y.; Arkansas City, Kan.; and Fort Edward, N.Y.

GE, based in Fairfield, Conn., also owns the NBC television network.

Shares of GE closed Tuesday on the New York Stock Exchange at $25.90, down 15 cents. They fell another 2 cents in extended trading.

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