Scenario: General Electric gas plant discussions

[Rick Warder]

CHICAGO, IL - Rep. Dennis Retton and community and regional leaders will be meeting with General Electric Corporation's C.E.O. Geoffrey Immelt to discuss the framework for constructing a new gas turbine manufacturing facility. Mr. Immelt said, "Tax incentives will play a critical role. We expect the plant to provide employment to over 1,500 workers, administrative staff and technicians. Additionally, the plant will cost roughly $700 million to construct over one year, employing thousands of people in the construction, raw materials and refining sectors. This plant will be a massive boost to the lucky region to get it."

Mr. Immelt has put the following offer on the table: five years of tax exemption for all revenues generated by the gas turbine plant as well as a $250 million one time tax offset against corporate taxes for investment expenditures incurred in the construction of the plant.

(OOC: Take it away, Retton!)

[Dennis Retton]

CHICAGO, IL - Local, regional, and national leaders from the Great Lakes region entered their first day of negotiations with General Electric in order to woo the indudstrial giant to construct a new plant in the Windy City.

The Great Lakes delegation's most vocal supporter was Rep. Dennis Retton of West Virginia, the recently-named House Minority Leader.

"I come from a state where we know the value of a solid relationship between labor and corporations," he said before the meeting. "It's my hope that we're able to reach an equitable compromise which will benefit all parties involved -- but mostly the residents of Chicago, the surrounding area, and the Great Lakes region as a whole."

While participants have been tight-lipped regarding any negotiation positions reached thus far besides the initial offer of GE, sources familiar with the talks said that Retton and the Great Lakes delegation countered with a 4-year tax-exemption package which included a one-time tax offset of $210 million against corporate taxes for investment expenditures incurred in the construction of the plant.

GE CEO Geoffrey Immelt could not be reached for comment on the ongoing negotiations as this story went to press.

[Rick Warder]

CHICAGO, IL - Rep. Dennis Retton swung into action for the benefit of the Great Lakes region, taking up discussions with local leaders and the Chicago Chamber of Commerce to hammer out a compromise with General Electric Corporation over a new gas turbine manufacturing facility. Civic groups, including the Sierra Club, began vociferously protesting the new factory, calling it a "huge source of pollution." GE CEO Jeff Immelt countered that the factory employs the "most modern technology and will have very low emissions."

Rep. Retton suggested a shorter tax exemption and a smaller tax credit, but Mr. Immelt was not impressed. "It all boils down to infrastructure. Does Chicago have the infrastructure we need? If it doesn't, we need tax breaks, since moving things is going to be more expensive. We want to do trade with Asia and Europe, so that's why Chicago is optimal, with the St. Lawrence Seaway on one end and the rail connections to LA and Seattle on the other. However, we could go to LA and Seattle and ship to Chicago instead. It's all in the air. We're talking to the Californians right now."

Mr. Immelt suggested that Rep. Retton promise infrastructure investment to sweeten the deal, including cheaper access to Chicago's ports, and more money for railroads and transportation in the Great Lakes region, especially additional public funding for the Union Pacific 'Overland Route' to Los Angeles.

[Dennis Retton]

CHICAGO, IL -- Negotiations continued between General Electric and local, regional, and national leaders from Chicagoland and the Great Lakes as lobbying continued for the company's new plant to be located in the Windy City.

In response to requests by GE officials, area leaders, including House Minority Leader Dennis Retton (D-WV), stood firm at offering a 4-year tax-exemption package which included a one-time tax offset of $210 million against corporate taxes for investment expenditures incurred in the construction of the plant.

In response to requests from General Electric, Retton said that Chicago officials are willing to offer lower-cost access to the city's ports, and that there would soon be action on the federal level to ensure an improved rail infrastructure throughout the Great Lakes, including between Chicago and the West Coast.

"Even in this day and age of high-tech transportation, our nation's rail network continues to be an important part of our national identity and our economic success," Retton said. "It will be my pleasure to introduce in the House a measure which will provide extra funding to one of our nation's iconic rail companies to help improve this nation's economic footing."

Retton went on to praise General Electric and CEO Immelt, thanking them for their continued cooperation in these negotiations, and for keeping their eye on the Windy City as a prime location for their plant.

"Chicago has long been considered a leading city of the Great Lakes," Retton said. "The fact that such a corporate giant would consider locating a cutting-edge plant in this fine city is only fitting. We look forward to continuing our work with GE to make this dream a reality."

[Uxbridge]

When asked about the General Electric gas plant Senator Uxbridge said " Wisconsin needs the engery that this plant will produce." " However at the same time not only must we conseve engery but look for more here in the States as well as Solar and Wind" " At My farm in Wisconsin we use Bio fuels when ever possable"

[Rick Warder]

OOC: Apologies for allowing this to stagnate during the week. I will be posting later tonight.

Thanks for your patience. My sluggishness was a result of work.

E.

[Dennis Retton]

(OOC: No problem -- I've been in the same boat this week, but milling plans for that proposed legislation so I can make GE happy. )

[Rick Warder]

The Saturday Evening Post:
G.E. to build new gas turbine facility in Chicago

FAIRFIELD, CT - General Electric CEO Geoffrey Immelt has been considering the latest offer presented by the City of Chicago and Representative Dennis Retton, who has been selected by Mayor Daley as the lead negotiator. "Though we are curious to see what sort of transportation improvements Mr. Retton can offer, we are satisfied with the remainder of his offer, namely a 4 year tax exemption and $210 in investment offsets for this year," Mr. Immelt said. "In exchange we are investing $700 million in the Chicagoland area, which will go to construction firms, steel manufacturers and so on; and furthermore, the plant will employ 1,600 workers after completion."

In Chicago, Mayor Daley reacted favorably to the news: "Chicago's a great place to do business, and we're glad that G.E. has decided to settle down in town."

The local chapter of the United Steel Workers union has purportedly been in talks to unionize the factory. However, Mr. Immelt has rejected the idea that the plant will be union, saying that "the flexibility we'll need to remain competitive won't be secured through union contracts." The company intends to include non-union provisions in all of the contracts it seals with its future plant workers. This has led to criticism of Rep. Retton for abandoning the AFL-CIO.

"Mr. Retton has just arranged that the plant that is being given tax exemptions and public subsidies will not even hire union workers," Mr. Jacob Patterson of the Chicago chapter of the AFL-CIO said. "I wish some of our blue collar people could get tax breaks and public money like that."

(OOC: Feel free to pursue the union issue if you're inclined, Mr. Retton. Otherwise, good work on the plant negotiations. :-) )

[Cody Shea]

WASHINGTON, D.C. - In a surprise move, Senator Cody Shea (D-NC) has asked publically that Rep. Dennis Retton (D-WV), a fellow southern democrat, reconsider the arrangements made with GE over the new gas plant that includes anti-union provisions for worker contracts.

"Rep. Retton is a fine man and one of our strongest voices in the house," said Shea on the steps of the Capitol building, "I have complete faith in him that he will not leave the hard working citizens of Chicago out in the cold. It just isn't in his character."

Shea, who has been engaged in heavy labor union fundraising for the DNC, was spurred to act after being contacted personally by AFL-CIO President John J. Sweeney with the situation.

"Mr. Sweeney, who is a good friend of mine, told me he had some concerns about what was happening. I assured him that Dennis Retton is a friend of the working man, and that he count on him."

Shea was then asked if he would travel to Chicago to oversee any future negotiations that may involve the unions, even if it puts him at odds with Rep. Retton's aims.

"If it comes to that, which I don't think it will, but if it does then I am prepared to take action. The people expect nothing less from me."

[Dennis Retton]

CHICAGO, IL -- House Minority Leader Rep. Dennis Retton (D-WV) today thanked General Electric for its vote of confidence by selecting Chicago as the site of its new gas turbine manufacturing facility, but pleaded with the industrial giant to reconsider its plan to effectively block unionizing of the plant.

"This nation was built upon the backs of the working man," Retton said, "and labor unions have always fought for fair conditions and pay in return for these workers' sacrifices. It saddens me that one of the great corporations of America would turn its back on nearly a century of proud service and tradition that's embodied by unions like the AFL-CIO."

Retton called on union leaders to join him, as well as local and regional leaders, at the negotiation table so that the union's voice would most surely not be drowned out.

"I hope that we can continue to work with GE to find a solution that will benefit all involved," Retton said. "As Senator Shea said in his statement earlier today, I'm indeed a friend of labor and will not abandon my fellow, hard-working Americans."

(OOC: Nice curveball, E...that was a bit of a shock to read when I got home.

[Uxbridge]

Uxbridge blasts outside interests in G.E. Plant!

" As much as this plant will be a boon to the whole United States, what in blue blazes are two Left Wing Southern Democrats doing sticking there nose in this?" " Both Senator Shea AND Rep Retton are known for there pro big union stands. This could cost my area this plant. Big Unions like the AFL-CIO have cost this country jobs. Since the once mighty BIG unions have no power other then to pick the pocket of there members they call in there 'HIRED GUNS" to get them contracts thay can not win on there merits!"

[Rick Warder]

G.E. officials reject union effort
in the Chicago Tribune

CHICAGO, IL - According to G.E. officials involved in negotiations with Mayor Richard Daley and Rep. Dennis Retton, "there can be no compromise on the union issue." The new gas turbine facility which is to be built on the outskirts of Chicago will not be a union facility. The reasons given for this decision were that the ability is needed to react to changing markets without the burden of union contracts. "Take a look at the difficulties General Motors is having with its unions and the obligations arising out of having a unionized workforce," G.E. CEO Geoffrey Immelt told this paper.

The Chicago chapter of the AFL-CIO staged a rally attended by 400 unionists. Sen. Cody Shea, the Democrat Senate Minority Leader, has swung into action. With elections around the corner, the Democrats have been drawing heavily from campaign finance from the unions.

"I am disgusted that G.E. officials are good enough to take public money, but not good enough to fulfill the public trust that signifies, namely to provide good union jobs which are stable and offer good benefits," said Chicago AFL-CIO chapter president Jacob Patterson.

CEO Geoffrey Immelt doubted whether the workers would even want to be unionized. "These aren't old-style factory jobs," he said. "These are technologically advanced manufacturing plants. We've got guys with science degrees, math degrees, technicians, all doing work for us. It's not people who've just come out of high school."

[Dennis Retton]

Retton: G.E. jumping to assumptions over unionization
in the Chicago Sun-Times

House Minority Leader Dennis Retton blasted General Electric for their staunch anti-union stance regarding the proposed gas-turbine production plant which was slated to be built in the Chicagoland area; local and regional leaders said they are less optimistic that the industrial giant will bring the plant to the shores of Lake Michigan now.

Retton scoffed at GE CEO Geoffrey Immelt's assertion that the workers in the plant would not want to unionize. "Firstly, unions are not simply for 'people who've just come out of high school,' as Mr. Immelt has said," said Retton. "This nation and this region have a long, proud tradition of hard work that has been ably represented by unions, regardless of the education level of the workers. Regardless of a person's education level, they at least deserve the opportunity to choose for themselves whether they wish to unionize or not." Retton went on to invite Immelt and other GE officials to return to the negotiation table and not count the Windy City out yet.

Retton also rebuffed Republicans who characterized him as a "hired gun" who had no business helping to secure jobs for one of the region's largest cities and its residents. "I'm a resident of the Great Lakes region who votes in the same regional elections Chicagoans do; I would not be doing my duty if I turned my back on them simply because they don't live in my home district," Retton said.

[Owen Williams]

Senator Williams wades into GE plant discussion

Earlier today Senator Williams held a press conference with Governor Arnold Schwarzennegger, prominent members of the Californian Chamber of Commerce, Professor Nahid Khan of UC Berkeley and Julio Esteban, of the Mexican-American Workers Cooperative.

"Good morning ladies and gentlemen, you must all be wondering what this motley crew is doing together and the answer is quite simple, I have organized a brand new, complete bid for General Electric's new turbine plant to be situated right here, in the great state of California!

I am here to act as the mediator and coordinator of the various components each of these people brings to the proposal so I will first outline their contributions before turning to the floor over to them to field further questions.

Governor Schwarzennegger currently has a tax break plan that he is currently ironing out with his various departments but wishes to provide something a little different as the State government's centrepiece for their offer. Rather the State of California would be willing to provide General Electric with a plot of state land just outside of Los Angeles for a rent of $1 per year for the first 7 years, with the option to renegotiate at the conclusion of 7 years. Furthermore, the Governor will be discussing the various attractions of California and Los Angeles, particularly the brand new intermodal port facility to be constructed by the Los Angeles Port Authority (OOC: Re: the Longshoremen's strike).

The California Chamber of Commerce wishes to discuss the many benefits of conducting business in California, including exceptional infrastructure and labour costs relatively low compared to the rest of the country.

Next we have Professor Khan, who will detail the existing availability of engineering expertise in California and how this will be of benefit to GE constructing their turbine plant here, as it will reduce or perhaps eliminate relocation costs.

And finally, Julio Esteban wishes to discuss the availability of competitively priced labour for the manual jobs required in the plant, which can be supplied by the Mexican-American Workers Cooperative (OOC: I made this thing up but here is my thinking, it's not a union, rather it's more like an agency set up to help new Mexican Americans get a good safe job quickly and they have a raft of people on their books, people call the Co-op and say, I need a cook, a maid a labourer, whatever, and the Co-op tries to fill the space).

Ladies and Gentlemen the simple fact is that the State of California can provide the most complete, and comprehensive bid for this new turbine plant and I urge General Electric to get in touch with myself as soon as possible to discuss our bid, and our offers."

OOC: I guess I'll just RP all the people I played here, and GE (Ie, you E.) can ask me questions or whatnot.

[Rick Warder]

Mayor R. Daley surprised by L.A. bid for G.E. plant
from Chicago Tribune

CHICAGO, IL - After nearly reaching a final agreement on a large new gas turbine facility, Chicago city authorities were surprised by Senator Owen Williams' sudden engagement.

Senator Williams said, "The State of California can provide the most complete, and comprehensive bid for this new turbine plant." He drew attention to a new, $750 million intermodal port facility to be erected in Long Beach, which will provide trade connections to Asia. However, GE CEO Geoffrey Immelt's reaction was reserved.

"At the moment we are looking into the Californian offer and are very happy with Senator Williams' suggestions," Mr. Immelt said. "But we are also looking to export to the growing markets in Eastern Europe and Russia, which are strong on natural gas production and are experiencing growing electrical demand. So we expect many more power plants to be going up that region of the world. If we're in Los Angeles, we'll have to add rail shipping costs from Los Angeles to the East Coast, which will hit our profits."

Mayor Daley issued a statement earlier that day: "Chicago is and remains the best place for the G.E. facility. Nobody can offer our closeness to the steel manufacturing industry in Pennsylvania, and nobody has access to the skilled labor of America's industrial heartland like we do. California may have many immigrants, but how many of those are technicians with the skills to do work for GE?"

Governor Arnold Schwarzenegger did not take this criticism without a hefty reply, however, and he retorted that "California has great technical institutes, we have CalTech, we have the UC system, we have Jet Propulsion Laboratories and we have software engineers to run G.E. robots in their factory." Mr. Schwarzenegger followed up his statement by flexing his massive biceps and threatening to put labor unions in a deadly headlock.

The deal for the G.E. plant seemed to be clinched until Rep. Dennis Retton reacted to labor union demands to unionize the new G.E. facility, which G.E. categorially rejected. The AFL-CIO has kept up a high pressure campaign on Mr. Retton to ensure the new plant is unionized, even making additional tax concessions if necessary, and has threatened to withhold further campaign funding if Mr. Retton backs down from his previous promise to unionize the facility in the face of rising pressure from business groups.

"Right now it's all up in the air," Mayor Richard Daley of Chicago said, echoing comments made by Mr. Immelt the day before. "We'll have to see what Mr. Retton can work out with his labor union backers. And it also depends on how far back the Californians are willing to bend."

Mr. Immelt reiterated that his stance on unionizing the plant is non-negotiable. "If they demand we take a union, then we're going somewhere else, even if it means China," he told the media. "The union model isn't the right fit for G.E."