GE Appliances, a Haier company, informed employees and officials from the IUE-CWA Local 83761 it is moving forward with its plan to return to Appliance Park the Supplier Distribution Center operated by Derby Supply Chain Solutions. It’s a company that manages supplier-owned parts for GEA.
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 but General Electric did not find them viable.
General Electric 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 will begin in November.
One-hundred and forty production and maintenance employees in Building 2 will be displaced by this action but will be absorbed into other areas at Appliance Park. No hourly layoffs will result from these actions.
“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, Kentucky. 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.”