No GE is not closing the factory because it will be obsolete. GE's big money is in defense. They have been considering selling their appliance division too. A corporation is out to make the most money for its investors, not to provide those investors with a job. They make profits on their lightbulb and appliance divisions, just not enough for those huge bonuses.
This is an example of profits before people. GE will most likely open a plant in Mexico, pay those workers $50 a week and overnight their profit margin rises. The price of lightbulbs will not go down to reflect the cheap labor. GE profits will increase. They will not have to worry about pollution, insurance, or any of those profit eating regulations. What they fail to realize, people in the US will not be able to afford those light bulbs anymore.http://www.thefreelibrary.com/CBC%3A+Job+Security+%231+for+GE+Workers%3B+Where+Have+All+the+Jobs+Gone%3F-a019332147from 1997:For example, in February GE announced 300 jobs were at risk as it planned to shift production from its steam turbine plant in Schenectady, N.Y. to a non-union plant in Maine and give additional work to outside suppliers. GE reported it did this to reduce costs so the turbine business "can contribute profitable orders in the future," said a GE executive. But operating profits in GE's power systems division increased by 39 percent to $1.1 billion in 1996.
Similarly, GE closed the Hickory plant in August 1996 and took some 300 jobs to Monterrey, Mexico, where workers reportedly were going to earn pennies an hour. to 2008:
http://www.nytimes.com/2010/01/23/business/23electric.htmlOver all, revenue fell 10 percent in the fourth quarter, to $41.4 billion. In 2009, revenue was down 14 percent, at $156.7 billion, compared with $182.5 billion in 2008. So where were GE's "losses"?
Their financial division and commercial property divisions. Not in factories that employ people and make a needed product. The company’s financial unit, G.E. Capital, for instance, has been pummeled by the collapse of the commercial real estate market and a steady rise in consumers who are unable to pay their bills.
Still, even G.E. Capital has been able to turn a profit — its earnings totaled $336 million in the fourth quarter — largely because of tax credits. Commercial real estate was the only part of G.E. Capital not to make money in the fourth quarter: it lost $593 million, for a total of $1.5 billion in 2009.Now for the disconnect....Steven E. Winoker, an analyst at Bernstein Research, said the country’s high jobless rate — 10 percent in December — could cause losses on loans and drag the company’s earnings down more than expected.
“Unemployment remains stubbornly negative, and the impact of that on a longer-term basis could be worse than people are saying,” Mr. Winoker said. So what does GE do? make more unemployed.At least the CEO refused his 12 million dollar bonus in 2008, after earning over 13 million in 2007. http://online.wsj.com/article/SB123495822386310161.htmlGeneral Electric Co. Chairman and CEO Jeffrey Immelt is forgoing more than $12 million in compensation for 2008, a year the company made use of government support as its profits and stock price declined amid the global economic crisis.
"Earnings came in below where we expected," Mr. Immelt wrote on the company's blog Wednesday, citing declining equity markets and a sliding GE stock price in 2008. "In these circumstances, I recommended to GE's Board of Directors that I would not receive a bonus in 2008." His bonus for 2007 was $5.8 million.
In addition to not receiving a bonus for 2008, Mr. Immelt also suggested -- and the board agreed -- that he forgo a special three-year, long-term incentive payout that would have totaled $11.7 million.
Mr. Immelt, 53 years old, earned $3.3 million in salary in 2008 and hasn't received a raise since 2005. He's also receiving a $2 million equity award.
That's a 61% decline from his compensation in 2007 of $13.81 million, which included salary, the $5.8 million bonus and equity award.
he refused his bonus again last year, but received millions in stock options. Their financial division took a big hit in revenue, they close plants in America to keep the profits up and the CEO refusues his multi million dollar bonus (other execs take theirs) http://www.usatoday.com/money/companies/management/2010-03-05-geceodeclinesbonus_N.htmHowever, GE did not leave Immelt empty-handed. He was paid a $3.3 million salary, the same as a year ago, and granted him 150,000 performance share units worth $1.8 million that will convert to GE stock if the company meets certain financial goals. GE also gave Immelt 2 million in stock options Thursday worth between $7 million and $8 million, though those options do not appear on his 2009 pay package.
Overall, Immelt's 2009 pay fell slightly to about $5.6 million, from $5.7 million in 2008. It also fell below the compensation of the four other top GE executives listed on GE's proxy, who all received bonusesFor a look at GE executive pay and bonuses.
http://www.companypay.com/executive/compensation/general-electric-co.asp?yr=2008