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GM to invest $100 million in New York parts plant

Neale Gulley Reuters 04/12/2011 19:08
GM to invest $100 million in New York parts plant - General Motors - USA - New York - Business


General Motors Co (GM.N) said on Tuesday it will invest $100 million in a New York parts plant that the company and union officials say was kept from closing because workers there agreed to "second-tier" wage levels designed to keep U.S. automakers competitive.



GM will make a new fuel injection product line at the Rochester plant, securing hundreds of jobs while also creating an additional 30 hourly jobs, New York Gov. Andrew Cuomo said. The plant currently employs 826 people.

GM's vice president for labor relations, Cathy Clegg, said the company has now announced investment of $1.1 billion at six North American plants to develop and produce the fuel-efficient "Gen V" small block engine that will be used primarily in full-sized trucks starting in the 2013 model year.

The new hires will boost to 675 the number of hourly wage workers at the Rochester plant, where most workers get the "second-tier" or "entry level" pay as low as $14.50 per hour -- about half the pay of veteran auto workers.


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