GE to Close Facility; Lay Off Texas Workers

GE to Close Facility; Lay Off Texas Workers
GE Oil and Gas plans to close a facility in Lufkin, Texas, which result in staff reductions.

Dozens of workers at Lufkin Industries, part of GE Oil and Gas, will be let go this summer.

In a notice sent to the Texas Workforce Commission (TWC), the GE Buck Creek facility in Lufkin, Texas (Lufkin is 120 miles northeast of Houston) announced that the facility would be closing, resulting in 78 layoffs. The layoffs will begin June 29 and continue through July 13.

“The downturn in the oil and gas industry has forced us to review our operations to determine how we can best stay competitive and meet the needs of our customers, changes that are critical to our future success even as we emerge from this volatile environment,” GE said in an emailed statement to Rigzone. “After careful consideration and evaluation, we have made the difficult decision to stop production at our Buck Creek Rod Lift Systems site in Lufkin, Texas.”  

GE spokesperson Stephanie Cathcart said the company will transition some Rod Lift employees to another worksite in Lufkin.

Although the facility closure is permanent, Buck Creek is a union plant and some workers have bumping rights (senior employee can take a less senior employee’s job). Affected employees will be paid benefits and severance.

“We are committed to working closely with our respective unions and providing affected employees with resources to help transition to other employment at BHGE or an outside company,” GE said. “We know how hard this is for the Lufkin community, so these aren’t decisions we take lightly.”

GE acquired Lufkin Industries for $3.3 billion in July 2013. The move was intended to broaden GE’s artificial lift capabilities. The company laid off 362 workers at three different facilities in Lufkin in June 2016.  


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Chad  |  July 06, 2018
These BHGE employees being laid off are the lucky ones, GE pays one months pay for every year of service, plus notice and holiday pay and job training. Once GE sells its share of BHGE the severance will be nowhere near as good.