The workers of GE Transportation, which just completed its merger with Wabtec (NYSE: WAB), immediately went on strike to fight to keep their existing compensation package.
On Tuesday morning, the United Electrical, Radio and Machine Workers of America (UE) announced that its approximately 1,700 members in Erie, Pennsylvania walked out of job.
UE failed to reach a short-term deal with Wabtec
According to the union, its representatives and Wabtec failed to reach a short-term agreement that preserves the benefits, salaries, and working conditions negotiated with their former employer, General Electric (NYSE: GE).
Wabtec implemented significant changes in the terms and conditions of its contract with UE Locals 506 and 618 when it took over GE Transportation on Monday. The changes included:
- mandatory overtime and arbitrary schedules
- wage reductions of up to 38 percent for recalled and newly-hired workers
- right to use temporary workers for up to 20 percent of the work in the plant
In a statement, Scott Slawson, President of UE Local 506, “We are extremely disappointed that the company could not see its way to agree to continue the terms and conditions that we have worked under for decades. Their refusal leaves us with no choice but to go out on strike to protect our members’ and our children’s future.”
