Mon 20-OCT-2014 Noon News Script
((Gov. Shumlin: "This is good news for Vermont.")) Governor Peter Shumlin speaking this morning about the deal that will see IBM transfer its semiconductor division to GlobalFoundries -- a deal that includes the IBM plant in Essex Junction.
Good afternoon, I'm Roger Garrity. After nearly six decades -- IBM is leaving Vermont. Big Blue announced this morning it has finalized the long-rumored move to get out of the semiconductor manufacturing business. GlobalFoundries will take over the IBM chip plants in Essex Junction and East Fishkill, New York. The company says it plans to keep most of the workforce -- including an estimated 4000 employees in Essex. IBM will pay Global one-point-five billion dollars to take the semiconductor business off its books. Global will also gain intellectual property -- the know-how and patents that have made IBM a leader in microprocessor manufacturing.
Darren Perron has been tracking the talks between the two companies for months. He's in the newsroom with more -- on GlobalFoundries -- and what this deal means for Vermont. Darren? Roger -- GlobalFoundries says it will provide employment opportunities for substantially all IBM employees -- except for a team of semiconductor server-group employees -- who will remain with IBM. Globalfoundries makes microchips used in just about any digital technology. It's plant in Malta, New York -- known as Fab 8 -- employs more than 2000 people now. And is expected to employ 45-hundred by the end of next year. That's comparable to the workforce at IBM in Essex Junction. Globalfoundries is growing. And fast. Malta made big changes to land the company .... new infrastructure, roads, roundabouts, water, sewer -- all lined up to attract the micro-chip giant. New York invested. Big time. And provided Globalfoundries nearly 2-billion dollars in grants and tax credits. Governor Shumlin says Vermont wants to forge a strong partnership with Global too. He's putting a team of business experts together to work with Global. He calls the deal good news for the workforce at the IBM plant -- and for the state of Vermont.
((Gov. Shumlin: 16:23 We all know in the past few years there has been a lot of uncertainty at IBM in the chipmaking business. 16:38 So what this means for Vermont is that we now have a partnership with GlobalFoundries. 16:55 The CEO has indicated to me that not only will they keep the hardworking dedicated innovative employees over 4000 working here at Essex Jct, but they want to expand and compete in this business. 21:29I am opptimistic about our future and excited about this development.)) I reached out to GlobalFoundries about its commitment to Vermont. And here's what spokesperson Travis Bullard told me .... "The bottom line is that we need the IBM workforce - the real value of the business to us is the people ..." " ... While it's almost impossible for any business to make open-ended commitments, we can say that we have no plans to reduce the workforce at this time ..." "We have not made any long-term decisions about the future of these facilities, but GLOBALFOUNDRIES will operate the plants for the foreseeable future." The deal needs federal approvals and that could take months. Once complete -- GlobalFoundries says it will be the largest semiconductor technology manufacturer in the Northeast. Roger.
The governor noted today that "IBM has been a part of the Vermont fabric for decades." For Essex -- you could say IBM is the heart and soul. Not only a huge employer and taxpayer -- but responsible for a large portion of the population. Residents we talked to this morning are sorry to see IBM go -- and hopeful GlobalFoundries will be as strong a community partner.
(01:04:08 Carl Houghton/Essex Jct.)(("Chittenden County really prospered because of IBM. The whole state prospered because of IBM. Now we don't have that anymore.")) (01:16:25 Benjamin Esancy/Essex Jct.)(("Good paying jobs are few and far between in Vermont. It's very important for the community to have those kind of jobs.")) (01:19:48 Troy Cirillo/Essex Jct.)(("Those jobs are hard to come by now. Whether it's at Fairpoint, IBM, Green Mountain Power, wherever. You know it's a skilled work force.")) We will have much more on the IBM-GlobalFoundries deal -- and what it means to Vermont -- coming up tonight on the Channel 3 News at 5:00 -- The :30 -- and the Channel 3 News at 6:00.
Allen Prue's legal team launched its defense this morning. The Waterford snow plow driver is accused of killing 33 year old Melissa Jenkins - with his wife's help - in 2012. The defense claims Patricia Prue was the mastermind behind the heinous crime. His lawyers called a former inmate who served time with Patricia -- to back up their theory. Amy Beede testified that Patricia claimed she pulled Jenkins into the couple's car and strangled her to death. The prosecution tried to block the jury from hearing Beede's testimony calling her an unreliable witness.
School is back in session in South Burlington. Students and teachers returned to the classroom -- after a tentative agreement was reached over the weekend to end a strike that kept schools closed most of last week. A mediator called in to broker the agreement says BOTH sides made sacrifices. Parents dropping off kids this morning welcomed the news.
(( Kelly Lord : "They are going to vote and hopefully that is the end of it, back to business as usual." // I'm glad the kids are back at school.")) The terms of the contract will not be released until after the teachers and the school board formally ratify the agreement later today.
Today: Increasing clouds Highs: 47 to 54 Wind: S 5 to 10 mph Tonight: Showers developing Lows: 37 to 44 Wind: Light Tuesday: Periods of rain Highs: 48 to 55 Wind: NNE 5 to 15 mph Extended: Wednesday: Rain Lows: 40s Highs: 50s Thursday: Rain Lows: 40s Highs: 50s Friday: Showers Lows: 40s Highs: 50s Hyper-Extended: Saturday: Partly sunny Lows: 35 to 45 Highs: 50s Sunday: Partly sunny Lows: 35 to 45 Highs: 50s
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Last Update: Mon 20-OCT-2014
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