Thread regarding General Electric Co. layoffs

GE relies on govt contracts and subsidies!!!

And outsources most production to low cost countries!!!

From Time:(https://time.com/6114004/general-electric-workforce-public-subsidies/)

"GE’s approach has affected American workers. Prior to 2017, when GE acquired LM Wind Power, its Denmark-based wind turbine manufacturer, it relied more heavily on U.S. workers to make its turbine blades. GE had been putting in orders for wind turbine blades at an Aberdeen, South Dakota plant of a small American composites manufacturer called Molded Fiber Glass. GE had been the plant’s only client. So shortly after GE moved its sourcing abroad, roughly 300 Molded Fiber Glass employees lost their jobs.

GE indicates it is now scaling up its domestic renewable work. Roughly 500 U.S.-based union jobs off the coast of Martha’s Vineyard will be created to build new Haliade-X wind turbines for a major offshore wind project, says a GE spokesperson. The spokesperson also said the company is considering the “possibility” of opening a facility in New Jersey that would assemble the part of wind turbines that house their electrical generators.

But the UMass/Cornell researchers say such investments don’t begin to offset the amount of public funding GE has received over the years. “Taxpayer dollars—in the form of government contracts and subsidies,” the report says, “have bankrolled GE’s transient approach to manufacturing.”"

"The $2.2 billion in public funds that the researchers say GE received is based on data compiled by Good Jobs First, a non-profit economic watchdog based in Washington, DC that lists GE’s federal subsidy awards going back to 2000. Its data is archived by the Library of Congress.

GE disputes the figure. Company spokespeople say that $2.2 billion sum included, for example, funds that state and federal governments paid to GE for products and subsidies to companies that were only later acquired by GE. For instance, the power business Alstom received at least $68 million in subsidies between 2002 and 2014, but GE did not purchase Alstom until 2015. A GE spokesperson adds that the $2.2 billion figure included $145 million that GE repaid to Massachusetts after GE scaled back its plans for its Boston headquarters. GE declined to provide another figure indicating the total amount of public funds the company has received in the last thirty years.

“While we have not been given the opportunity to review this report, we disagree with its findings based on our continued investments in our workforce and facilities across the country,” according to a statement from GE, which noted that the company has invested more than a billion dollars in expanding its U.S. facilities since 2015.

Greg LeRoy, the executive director of Good Jobs First, defended the tracker’s methods and accuracy. It always accrues past subsidy awards to the current controlling corporation because the subsidies often figure into merger and acquisition deals, he said. Alstom, for example, received federal grants totaling more than $12 million the year before GE acquired it, according to the tracker. That cash infusion can “clearly accrue to the financial benefit” of a current corporate owner, LeRoy says.

LeRoy added that, if anything, the $2.2 billion figure is likely too low, given GE’s size, geographic reach and tax maneuverability. Funds that are not disclosed by local governments, that arrived in the form of corporate income tax credits, or that were awarded outside the public application processes are nearly impossible to track. Good Jobs First’s LeRoy adds that his researchers were able to identify 68 cases in which GE and its subsidies received public funds, but the dollar value was not made public—and therefore not included in the $2.2 billion sum.

Whether GE received more or less than $2.2 billion in government funds is not as important, the researchers argue, than examining whether that public investment ultimately served U.S. goals."

"Arthur Wheaton, the report’s other primary author and the director of Western NY Labor and Environmental Programs for the Worker Institute at Cornell, says those job losses have a “multiplier effect” on community. “A dollar doesn’t just go to the employees, it goes through the community to all sorts of restaurants, nonprofits, [and] other activities,” he says, and that has “a major impact when you’re cutting thousands and thousands of jobs.”

GE says it’s investing in domestic workforce training. Earlier this month, it announced a $4.4 million grant to extend an “advanced manufacturing training” program benefitting Lynn and the Massachusetts’ North Shore, and ​​in 2019, it invested $900,000 in an internal training program. GE remains one of the largest manufacturers in Massachusetts, employing nearly 2,450 people in the state. GE also continues to invest in manufacturing domestically, the report notes, including more than $4.3 billion in its domestic Aviation Division, versus just $1.1 billion abroad since 2010.

But the researchers maintain that directing a fire hose of public funds at GE as it simultaneously winds down domestic manufacturing represents a lost opportunity—both for fighting climate change and supporting a healthier U.S. economy. That may be especially true amidst a period in which the White House and majority-rule in Congress is prioritizing renewable energy investments.

“There’s a huge amount of growth here,” says Juravich, of the opportunities in the renewable energy market. “The question is whether it’s going to benefit American workers.”"

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Post ID: @OP+1ecDvRoh

4 replies (most recent on top)

Funny thing happened back 2017. EX IM bank that allows expensive products to be financed with American tax dollars ( and when paid back ever penny goes to pay down the national debt ,interest) the bill was not renewed by republicans in Congress therefore the financial arm that helps GE sell expensive things(turbines etc) was broken. Republicans said it was corporate welfare .Same republicans raise he-l about the national debt being out of control. GE Greenville Republican workers felt the same way yet are still facing the reprocucions of voting against their own best interests. Now a company split into 3 n possibly a total disolution of itself. Yet double down n triple down once again n vote against your own well being.People Are now getting the full effect of half truths n whole lies Please enjoy ,Swollow it tuck it way down inside n never bring it up again while your in the unemployment office.

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Post ID: @Swxy+1ecDvRoh

@OP+1ecDvRoh Very interesting about Alstom, someone shared with me in November 2014 that Schenectady was a goner. Could it be my source knew about the monies already being received by GE prior to the Alstom deal in 2015? All water under the bridge now but still interesting.

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Post ID: @1lag+1ecDvRoh

Why in the USA do we let these con artist take advantage of us? Here take my money through US Taxpayers, now use it anyway you can to scr-w us out of a job in our country. Who has not held GE accountable for this since they started nose diving in 2000? More whistleblowers please so we can resolve this problem.

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Post ID: @agg+1ecDvRoh

It goes way beyond that. The government is still pumping money into the financial system and stock market to the extent that they have 7 or 8 trillion dollars worth of assets on their balance sheet. They ate talking about tapering their purchases down by about 20 billion per month and the market freaks out. GE would not exist without heavy support from the US taxpayer. It's much more than the 2.2 billion referenced in the article. Some good info though. Thanks for posting.

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Post ID: @qqj+1ecDvRoh

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