GE Transportation will cut up to 575 union jobs and end locomotive production at its Lawrence Park plant, the company told Erie News Now Thursday.

2,000 workers total would be left if all the cuts go through, according to the company. They include 900 union and 1,100 salary workers. The cuts are subject to decision bargaining with the union, which must start within 60 days.

Half of the union workers are eligible for early retirement, GE representatives said.

All locomotive production work would move to Forth Worth, Texas by the end of 2018, the company said. Lawrence Park workers would provide design, engineering and development services to make prototypes and component products.

The cuts are being made because locomotive production is down significantly, and the mining industry is soft as well, according to GE.

The announcement comes nearly 18 months after the company began eliminating 1,500 jobs.

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General Electric shared the following statements with Erie News Now.

Holding statement

“In recent years, North American freight locomotive volume has dropped ~10% and locomotive orders for all manufacturers in the U.S. have declined. Today, growth market opportunities for locomotive orders are global.

Given these market realities and the need for cost competitiveness across our global markets, GE Transportation announced its intent to transfer production of locomotives and kits for international customers to the GE Manufacturing Solutions facility in Fort Worth, TX from Erie, PA. This move is necessary to drive efficiency, better compete in the increasingly competitive global rail market, and preserve U.S. jobs.

Transferring work is always a tough decision, especially in a community like Erie where we have operated for over 100 years and will continue to have deep roots, but necessary given today’s challenged market. If we move forward with this proposed transformation, Erie would remain our largest location with approximately 2,000 hourly and salaried employees. These proposed actions are subject to a 60-day decision bargaining period, if requested by the Union.”

Message from Jamie Miller, President and CEO of GE Transportation, to employees

Team,

Over the past few years, GE Transportation has been on a journey positioning the business and our operations around the world to become more competitive in the markets we serve. Given the continued challenging environment, we are taking a bold and difficult step to secure a long-term, sustainable future.

Today, GE Transportation is announcing its intent to transfer remaining U.S.-based production of locomotives and kits for international customers from our Erie, Pennsylvania site to our GE Manufacturing Solutions facility in Fort Worth, Texas. While relocating jobs is always a tough decision, it is necessary to reduce cost and become more competitive in today’s global freight locomotive market. This proposed transfer of work is subject to decision bargaining with the UE.

Should the decision be to move forward after decision bargaining, our intent is to transform our Erie campus to focus on design, engineering, prototype development, and components production.  Erie has been a part of GE for more than 100 years, continually evolving to meet market challenges. In fact, even following this proposed transformation, Erie would remain our largest location with approximately 2,000 hourly and salaried employees. The site will be a critical part of GE Transportation for years to come and this transformation will help write the next chapter.

I realize this is difficult news to hear, but not a surprise given the challenging market and the need for cost competitiveness. These actions are not a reflection on our hardworking teams at these sites, but rather imperative for GE Transportation’s future. By investing in digital, expanding our global product offerings and aligning our operations to meet customer needs, we are positioning the business to weather the market conditions and promote growth.

As we work through this process, we must remain focused. Our top priority continues to be our employees, customers, and communities. Please support one another and continue to deliver the products and services our customers expect.

Jamie

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