Louisville, Ky.—July 28, 2017—GE Appliances (GEA), a Haier company, today informed employees and officials from the IUE-CWA Local 83761 of its plans to move forward with its plan to return to Appliance Park the Supplier Distribution Center (SDC) operated by Derby Supply Chain Solutions (Derby), the company that manages supplier-owned parts for GEA.
“We have been looking for ways to regain the economic and supply chain advantages of an on-site parts distribution center since Derby moved to Shepherdsville, Ky., after Building 6 was destroyed in a fire in 2015,” said Bill Good, Vice President of GEA’s Supply Chain Network. “After an in-depth evaluation of all the buildings in Appliance Park, we determined the only feasible location for the SDC is Building 2. This central location next to our largest production operations enables real-time distribution of parts, eliminates production disruptions due to traffic and other transportation-related delays and allows for rapid transitions to changes in customer orders. That speed and agility is essential for us to meet commitments to customers and be on par with our competitors.”
Making adequate room for the Derby SDC in Building 2 requires the relocation of Zoneline PTAC (Zoneline) production, resulting in a Transfer of Work (TOW) under the collective bargaining agreement with the IUE-CWA Local 83761, which represents production employees at the Park. Union officials had the opportunity to present GEA with alternatives to the Zoneline TOW during a 60-day decision bargaining period, which extended to over 80 days while the Company continued to consider Union proposals.
After careful consideration of the Union’s proposals, we have determined that the proposals failed to offer feasible alternatives to GEA’s proposed plan. Therefore, we have made the decision to relocate the production of Zoneline to another GEA U.S. manufacturing facility. The selection of a new location will be finalized in the coming weeks so that the transfer of work can begin in November.
The approximately 140 production and maintenance employees in Building 2 who will be displaced by this action will be absorbed into other areas at Appliance Park. No hourly layoffs would result from these actions.
About GE Appliances, a Haier company
GE Appliances, a Haier company, makes moments that matter for our owners through our passion for making great appliances and providing unparalleled services. Owners have more choices than ever before under the Hotpoint, GE®, Haier, GE Café™, GE Profile™ and Monogram™ brands. Our products include refrigerators, freezers, cooking products, dishwashers, washers, dryers, air conditioners, water filtration systems and water heaters. For more information, visit www.geappliances.com/our-company.