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Old 10-20-2014, 09:59 AM
 
3,578 posts, read 3,072,868 times
Reputation: 3502

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The new owner has indicated that the Essex Junction facility will be kept and possibly expanded. This is very good news if true. See link below.

Reaction to IBM deal - WCAX.COM Local Vermont News, Weather and Sports-

These production facilities require precise and constant voltages to operate. The shut down of Vermont Yankee will cause fluctuations in voltage because of the need to import power from far away. IBM has warned of this condition. Will the political class in Vermont come to their senses and stop the shutdown?
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Old 10-20-2014, 01:18 PM
 
Location: The Woods
16,955 posts, read 22,271,168 times
Reputation: 9066
They didn't actually say they will keep the plant open. And it's been said IBM paid them to take the plant. They said most of the employees will be offered job opportunities. They could shut it down and offer them the chance to apply for jobs elsewhere. Maybe I'm wrong but I don't see the plant remaining open too much longer.
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Old 10-20-2014, 04:56 PM
 
809 posts, read 678,128 times
Reputation: 1333
I fear it will simply be a replica of the destruction of Springfield as "Precision Valley." Forty percent of IBM's workforce already lives in India; Global Foundries clearly has no vested interest in providing value to stakeholders-- the community, the labor force, our state, the economy-- rather than shareholders-- the one percent.

There's no reason why there shouldn't be a tax in place to prevent Vermont industries from being treated like poker chips in a game of international finance. But the House Ways and Means Committee wouldn't address the proposal.
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Old 10-21-2014, 01:54 PM
 
Location: Vermont, Chittenden County
24 posts, read 22,347 times
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Global stated in employee meetings they are keeping the workforce here in VT for the foreseeable future and they don't have to reapply for their jobs.

There is more demand for chips than they have current capacity for in all the fabs and the workforce is educated.

Global wants to be in the chip business and is growing and investing.
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Old 10-21-2014, 03:04 PM
 
Location: Vermont
1,018 posts, read 1,420,987 times
Reputation: 1994
IBM paid them 1.5 billion to take the business. Whatever their long term plans are, they certainly won't tip their hand yet. As much as VT politicians think it's a good thing, business is business and the work goes where costs are lower and incentives greater. VT can't compete with NY on that front and their plant in Malta has been getting serious investment money.
It would be a huge blow to VT to lose those jobs. My gut feeling is this is not a good deal for the VT plant. I hope I'm wrong.
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Old 10-22-2014, 09:19 PM
 
13,915 posts, read 7,411,228 times
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I've designed in several IBM chips over the years. The Rainier network processor was designed in RTP, NC and fab'd in the Essex Junction plant. IBM sold that particular product line and the fab line quickly moved to Asia. The value of the Essex Junction plant is the intellectual property created and supported by the chip designers. The actual fab lines are pretty long in the tooth. I can see some chance that a few hundred jobs surviving and moving to an office building somewhere in Chittenden County if the new owners conclude that the employees they want to keep wouldn't accept a transfer to another plant but I don't see the plant surviving long term.

If the plant closes, it's going to be catastrophic for Vermont. 5,000 tech jobs have an enormous multiplier in the local economy and that creates a very large tax revenue stream for the state. If it closes, you immediately are faced with a property market crash and a state budget crisis. In the past, Vermont could drive down to New York IBM corporate HQ and twist arms. With the new owners in Abu Dhabi, they have zero influence.
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Old 10-23-2014, 10:01 AM
 
Location: Somewhere in northern Alabama
17,879 posts, read 54,180,694 times
Reputation: 30369
Until there is regulatory approval, everyone will be on their best "status-quo" behavior spinning yarns of how valuable and educated the work force is. Once the hurdles have been jumped there will be "insurmountable" issues unless concessions are made, including what is in essence a negative tax - where the state PAYS to have the business remain, and pays MORE than NY is willing to pay. This is bare-knuckle capitalism where the businesses are large enough to beat up the governments even more than a union.
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Old 10-24-2014, 10:32 AM
 
809 posts, read 678,128 times
Reputation: 1333
GeoffD's comments indicate the need for government to prevent cowboy capitalists from playing with capital as though it were poker chips. Were the employees the owners of IBM, things would play out much better. Were Global forced to compete on a level playing field against an employee buy-out of IBM's plants, things would play out much better. Until we elect legislators who change the rules, plutocratic capitalism will continue to impoverish local communities throughout the world.
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Old 10-29-2014, 10:33 PM
 
Location: on a dirt road in Waitsfield,Vermont
2,186 posts, read 5,993,736 times
Reputation: 1126
Actually. IBM will be shelling out over 4B to get the Essex plant off their hands. 1.5B up front then 3B to clean up the toxic mess from all the chemicals used over the years. The state wanted to put down the hammer on IBM to cleanup the mess for years but held off to prevent job loss.
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Old 10-30-2014, 05:11 PM
 
809 posts, read 678,128 times
Reputation: 1333
Another interesting thing to watch will be what sort of clout either IBM or Global Foundry will have in the statehouse. For years the pols have been pussyfooting around issues, wondering what Big Blue felt about them.
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