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What is the problem presented in the article? Why do you think it is the problem? What are some possible solutions? Write a 3-paragraph synopsis that summarizes the team's discussion. APA format. Below is the article. Layoff plan moves forward at GE Transportation Martin, Jim. McClatchy - Tribune Business News [Washington] 03 Nov 2013. [...]Duke said the union plans to apply for Trade Adjustment Assistance or TAA, which provides wide-reaching benefits to employees who lose their jobs due to foreign competition.
Nov. 03--The first of the layoff notices should be distributed Monday morning as third-shift employees clock out for the night at GE Transportation. It's a move that's been months in coming. The clock began ticking April 9 when the company announced plans to eliminate 100 salaried positions and 950 union jobs at its Erie plant. Now, after unsuccessful lobbying and failed negotiations aimed at saving jobs, the company's plan for its first round of layoff's is moving forward.
GE Transportation, which said the cutbacks were prompted by a slowdown in orders and productivity concerns, announced Sept. 3 that the first round of layoffs would affect about 500 employees. The pink slips to be distributed Monday will give employees one-week notice of their layoff, said Scott Duke, president of Local 506 of the United Electrical, Radio and Machine Workers of America. However, the initial layoff total might be slightly lower. Jennifer Erickson, spokeswoman for GE Transportation, said about 50 employees is expected to retire instead of taking a layoff.
For some, those decisions have been difficult to make, Duke said. "It keeps changing," he said. "They are saying yes (to retirement) and they are backing out. It's a major decision for some people." While each retirement had the potential to spare one layoff, Duke said he didn't try to influence anyone's decision. "That's not my role," he said.
In a statement from Erickson, the company acknowledged the significance of the job cuts. "We are taking this difficult step to meet an increasingly challenging marketplace that requires us to reduce costs and improve flexibility to maintain our competitiveness," she said. "We understand how hard this action is for everyone affected, including families and the broader community." She said the company is working closely with the state Department of Labor & Industry's Rapid Response team to help employees who lose their jobs. Here's a look at what the company is doing for displaced employees and the benefits they are entitled to under the union contract: - Rapid Response will be at GE Transportation on Tuesday to conduct an on-site job fair for displaced employees and those with lower years of service. - Representatives of local colleges and trade schools are expected to attend as well as between 20 and 25 employers with plans to hire. - Outplacement sessions will be held twice daily on Nov. 5, 12 and 19 in the auditorium of the Customer Innovation Center. Information will be provided on unemployment, health insurance, continuing education, retraining and other services available to affected employees. - Instructional workshops will be held twice daily in the same building on Nov. 7, 14 and 21 to help employees develop skills to navigate a job search. - The UE contract provides for income extension equal to one week of pay for every year of service, with a minimum of four weeks pay. Displaced employees also will receive a 12-month extension of their benefits, including medical, dental and vision insurance. - Employees also are eligible for a training allowance that provides up to $6,000 a year for approved classes. Finally, Duke said the union plans to apply for Trade Adjustment Assistance or TAA, which provides wide-reaching benefits to employees who lose their jobs due to foreign competition. The union applied three times for TAA benefits before they were granted after a mass layoff in 2009. "I feel good about it," Duke said. "I don't think the company is going to fight us." JIM MARTIN can be reached at or by e-mail. Credit: Erie Times-News, Pa. Word count: 589 (c)2013 the Erie Times-News (Erie, Pa.) Visit the Erie Times-News (Erie, Pa.) at Distributed by MCT Information Services words apa format and references cited
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The article discusses the significant layoffs at GE Transportation, highlighting the core problem of workforce reduction due to economic and market pressures. The primary issue revolves around the company's decision to cut 950 union jobs and 100 salaried positions because of declining orders and productivity concerns. This situation underscores a common challenge faced by manufacturing industries: maintaining competitiveness in a globalized economy, which often leads to difficult decisions like workforce downsizing. The problem is compounded by the uncertainty surrounding retirement decisions, employee anxieties, and the broader impact on the community and families associated with the affected employees.
Many reasons contribute to this problem, including market slowdown, decreased demand for products, and international competition. The company's statement emphasizes the necessity of reducing costs and increasing flexibility to remain competitive amid challenging market conditions. Employees, on their part, face difficult choices, balancing the need for financial stability against the personal and emotional toll of layoffs and uncertainty in their careers. The union's plan to apply for Trade Adjustment Assistance (TAA) reflects an attempt to secure additional support for displaced workers, recognizing the need for comprehensive solutions to mitigate adverse effects. The company's efforts to offer outplacement services, retraining, and extended benefits demonstrate a recognition of the problem's multifaceted nature and the need for supportive measures.
Possible solutions to mitigate the impact of such layoffs include diversifying product lines, exploring new markets, and improving operational efficiencies to avoid extensive job cuts. Additionally, proactive workforce planning through skills development and retraining programs can help affected employees transition into new roles within or outside the company. Collaborations with educational institutions and government assistance programs, such as TAA, are crucial in providing alternative employment pathways, reducing economic hardship, and fostering workforce resilience. Implementing these strategies collectively can help stabilize the industry and support displaced workers more effectively, addressing the root causes of the problem while ensuring the long-term sustainability of companies like GE Transportation.