March 26, 2009 Lawmakers worried that GlobalFoundries won't hire local workers Company plans to hire 70 percent union labor to build chip plant
By DREW KERR
dkerr@poststar.com
Updated: Tuesday, March 24, 2009 3:02 PM EDT
MALTA -- State lawmakers are worried that GlobalFoundries could overlook the areas work force when it comes time to build its proposed computer chip factory in Malta, a project that is receiving $1.2 billion in state aid.
Last week, members of the state Senates Labor Committee sent Gov. David Paterson a letter urging him to intercede and get the company to sign a project labor agreement stipulating that members of area unions will be used to build the factory in the Luther Forest Technology Campus.
Though GlobalFoundries has pledged to tap the local work force as much as possible, the firms refusal to enter a formal labor agreement is disconcerting, lawmakers said in their letter.
"The frustration and bad faith experienced by the local building trades on this project has left them, understandably, with a sense of injustice," the letter said.
Lawmakers say the states $1.2 billion incentive package, which includes a $600 million cash grant and a local sales tax exemption worth up to $28 million, justify the need for a labor agreement.
They are also pointing out the loss of nearly 20,400 construction jobs in New York over the last year, creating "an abundance of skilled trade workers in the greater capital region and elsewhere in the state who are ready, eager and in need of work."
Sen. Roy McDonald, R-Saratoga, said this week he has also asked the Governor to help ensure local workers enjoy the benefits of the "chip fab," which he likened to a public works project.
"Its nice that people from South Carolina say theyll travel here and work here, but theyre not the ones who are paying the taxes that helped bring this project here," McDonald said. "The public does not want to see all this money being spent and all of these people from out of state reaping the rewards."
Construction of the computer chip factory could begin as early as this summer and is expected to last for nearly two years. Officials have said as many as 1,900 construction workers could be needed to complete the $4.2 billion project.
GlobalFoundries spokesman Travis Bullard said today the company expects to use at least 70 percent union labor but hopes to avoid entering a labor agreement.
"The goal is to come to an understanding without having to put it into writing," he said. "But we fully expect, just because of the sheer size of this project, that we will require a huge majority of unionized labor."
Certain technical aspects of the fabs construction will require that outside help be brought in, Bullard said.
He also said that, while the state is a "large stakeholder" in the project, the company is channeling significant capital into the project as well and should be given some flexibility in its hiring strategy.
"At the end of the day, this is a commercial project," Bullard said.
In a prepared statement, the governors office expressed optimism that an accord could be found.
"The governor believes that AMD (a part-owner of the GlobalFoundries joint venture) and organized labor can reach an agreement on this important project, and his staff has hosted conversations this week towards that," the statement said. "The meetings continue, and we believe this important issue can be resolved."
Attempts to reach union representatives were unsuccessful
