ERIE, Pa. — An official in Erie County says that Wabtec may be preparing to close its locomotive plant in Erie if it does not reach a new labor agreement with 1,400 striking workers.
County Executive Brenton Davis said in a statement Wednesday that he had confirmed that “Wabtec was visited by representatives of a major third-party contractor that manufactures many, if not all, of the locomotive components currently assembled at the Erie plant,” and said this was “a troubling development that suggested the company could be considering a plant closure.”
Workers from Locals 506 and 618 of the United Electrical, Radio and Machine Workers of America walked out on June 22 after their prior contract expired June 10. While the Erie facility was at one time the only plant for manufacture of General Electric locomotives, GE opened a second, non-union plant in Fort Worth, Texas, in 2012. GE Transportation merged into Wabtec in 2019 [see “GE-Wabtec merger …,” Trains News Wire, Feb. 26, 2019].
Davis called for the company and its striking workers to reach a tentative agreement that could be put to a vote of the employees.
“This plant should not disappear without at least a vote of the workers whose livelihoods are at stake,” Davis wrote. “Any strike, layoff, or plant closure would have grave effects on our local economy and in the households of those abruptly unemployed. As County Executive, I am prepared to do whatever it takes to see this situation resolved and manufacturing is preserved in Erie.”
The Pittsburgh Post-Gazette reports that Wabtec spokesman Tim Bader declined to comment on the Davis press release, but said in a prepared statement that the company “is being forced to consider difficult decisions to continue supporting its customers and deliver on its commitments.” The company has sought an agreement “that would best position its employees and the Erie site for success,” he said, calling the Erie plant “a laggard in terms of cost and efficiency for years as compared to other Wabtec sites and suppliers.”
Wabtec has said it has offered $41 million in wage improvements in a new contract, but union demands on “new hire wages and unfettered right to strike seem out of touch with the economic realities.”
The Erie Times-News reports Local 506 President Scott Slawson indicates the plant’s progressive pay scale is a key issue. Currently, legacy employees earn an average of $35 an hour; new workers start at about $22 an hour and progress to full wages over 10 years. The union sought to eliminate the phased-in pay scale but in its most recent proposal suggested a five-year period to raise the wages to the legacy level, but the company has rejected all proposals regarding the existing progressive scale.
On general wage increases, Slawson said, the sides are “not that far apart,” with the union calling for increases of 4%, 3.5%, 3%, and 3.5% over four years; Wabtec’s last offer included a 3.4% increase the first year, a $3,000 bonus on ratification, two 2.5% increases, and another $2,000 lump-sum payment later in the contract.
The Wabtec plant employs a total of about 2,000 people and is Erie County’s third-largest employer.
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