Workers, Ky. officials face uncertainty over GE operation

Word that General Electric Co. might shed its appliance division, headquartered in Louisville, sent ripples through the work force that reached city hall and the governor's office in Frankfort.

State and local officials met with GE executives Friday, then tried to put a positive face on the uncertainty at Appliance Park, an approximately 900-acre operation so big it has its own postal ZIP code.

"I think we've got a lot to sell, and we just need to take advantage of that opportunity," said Larry Hayes, secretary of Gov. Steve Beshear's executive cabinet.

"It's the hand we've been dealt, and now we need to play that hand as best we can."

Some GE workers said they were blindsided by the company's announcement and talked about tightening their belts amid the worries of keeping their jobs in a struggling economy.

"We don't have any idea who's coming in, what kind of salaries, how much of our benefits we're going to lose," said Ann Davidson, a production worker with 35 years at GE plants.

Davidson, whose husband, Bob, has worked at Appliance Park for nearly 39 years, said they would settle for a shorter summer vacation much closer to home rather than one they planned out West.

They'll also pretty much cut out eating at restaurants, she said.

"We don't know how much longer we're going to have a check coming in," she said.

GE says it's premature to speculate on the impact on jobs and the plant.

Tim Somheil, editor of Appliance Magazine, said some appliance makers have moved from the United States to cheaper labor markets such as Mexico. But he also said other companies have bucked that trend, opting to make substantial investments in U.S. plants.

Matt Collins, an analyst at Edward Jones in St. Louis, said the plant would not necessarily close if sold.

"The weak dollar makes U.S. production look a little more attractive to a foreign buyer," Collins said. "So that could help them, but obviously they have to be competitive on a cost basis over the long term."

GE's appliance division had revenue of $7 billion last year and employs about 13,000 people worldwide. The Louisville operation is one of several GE plants that churn out appliances.

For decades, Appliance Park was a major cog in the local and state economy. The massive operation opened in 1953 and 20 years later employment peaked at nearly 23,000 workers. The work force has dwindled through the years and now stands at about 5,000 -a combination of production line and white-collar jobs. Assembly workers build dishwashers, washing machines and top-freezer refrigerators in Louisville. The white-collar jobs include marketing, finance and research and development.

GE contributes more than $425 million a year to the Louisville economy through payroll, benefits and purchased goods and services. The company is Louisville's sixth-largest private employer, city officials said.

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Associated Press business writer John Christoffersen in New Haven, Conn., contributed to this report.