FOR IMMEDIATE RELEASE:
June 3, 2009
GOVERNOR PATERSON ANNOUNCES DEAL ON CRITICAL INVESTMENT
Following Governor’s Intervention, GLOBALFOUNDRIES and the Greater Capital District Building and Construction Trades Council AFL-CIO Agree to Project Labor Agreement
Construction on One of the Largest Public and Private Investment in State History Now Able to Move Forward
Governor David A. Paterson today announced that an agreement on a Project Labor Agreement (PLA) has been reached between GLOBALFOUNDRIES and local labor, allowing construction to move forward on one of the most advanced semiconductor manufacturing facilities in the world and one of the largest private sector industrial investments in New York State. The PLA between the Greater Capital District Building and Construction Trades Council AFL-CIO and M+W Zander – the firm working on the Fab 2 project – will be signed this week to finalize the labor peace agreement.
After the intervention of Governor Paterson, the two parties negotiated over the last several weeks to work out the details of the construction agreement that takes into account the unique requirements of this world-class facility. Under the Agreement, local building trades have pledged not to strike or engage in other actions that would impede construction.
“As we move New York State into the New Economy, public-private partnerships will be critical in reshaping the economic landscape. Bringing economic development like this not only creates jobs and leverages private investment, but it positions New York as a technology giant,” said Governor Paterson. “The collaboration of GLOBALFOUNDRIES with the local building trades is a model of the private sector and organized labor working together.”
The construction project will take approximately two years to complete and an additional 12 to 18 months to reach full operating mode. The GLOBALFOUNDRIES project is expected to create approximately 1,400 new direct semiconductor manufacturing jobs, with an average annual salary of $60,000 per year and an estimated annual payroll of more than $88 million. This project is expected to create an additional 5,000 indirect jobs in the region with a sustained estimated total payroll for both direct and indirect jobs of $290 million per year.
An immediate boost to the region’s economy, the total capital budget is estimated at approximately $4.2 billion, including local construction expenditures of approximately $800 million. Construction is expected to create approximately 1,600 new construction jobs, plus an additional 2,700 local construction-related jobs.
This new announcement allows GLOBALFOUNDRIES to begin construction on the 1.2 million square foot chip fabrication plant, which is larger than what was originally envisioned. The plant will produce a 22 nanometer chip, which is two generations ahead of the 45 nanometer chip, which is the current cutting edge chip. The development of the site will allow for the potential building of up to three additional chip fabrication plants.
The following quotations were provided in support of the Project Labor Agreement:
Assembly Speaker Sheldon Silver said: “With the completion of the GLOBALFOUNDRIES project, New York is in position to become the leader in the microchip industry. It is important that the Malta plant’s construction include skilled men and women who are paid fairly and provided with appropriate benefits for their work. If this undertaking is to create thousands of well-paying jobs and stimulate economic growth in the surrounding communities, it must start with those who will build this plant. With the College of Nanoscale Science and Engineering of the University at Albany, specialized tech companies that have invested here and the efforts of the Capital Region delegation, the Albany area has become Tech Valley. This agreement helps to ensure a smooth and timely development of the GLOBALFOUNDRIES plant, advancing the goals of Tech Valley. I thank Governor Paterson for helping to bring together the labor and construction interests.”
Assembly Majority Leader Ron Canestrari said: “I am glad that cooperative spirits have prevailed and an agreement has been reached on this project, which I believe will transform the State’s economy, particularly right here in Upstate New York. There was a tremendous amount at stake and the Governor deserves a great deal of credit for bringing the two sides together to ensure that this project moves forward. This is something I believe all involved will be very proud of.”
Senator Neil Breslin said: “This is a true win for our economy and for our workers. The AMD project is one of the most significant opportunities we have in the Capitol Region right now to create jobs and attract new investments and residents. I am very pleased that we were able to create a sensible agreement and expect that this is a sign of greater things to come. I thank my partner in this effort, Senator George Onorato, and Governor Paterson for their diligence on this matter.”
Senator Roy McDonald said: “With the significant amount of local and state investment, through economic incentives and grants totaling nearly $1.2 billion, it is especially gratifying to finally let our communities know that there will be local jobs for local people with the announcement of a Project Labor Agreement. It has been the unwavering support and sacrifice of our local communities, residents, and elected officials that have provided constant reassurance of their desire to have this project in our locale; I am pleased to now reassure these individuals that this will help to jumpstart our upstate economy, be a location for the employment of our local residents and will be an all-New York project.”
Assemblyman Tim Gordon said: “It’s imperative that when New York State taxpayer dollars are being invested in economic development projects, the jobs created put New Yorkers to work and money back into our state’s economy. Today’s labor agreement is a win-win situation that further solidifies the Capital Region’s position as Tech Valley, while creating thousands of jobs for local workers.”
Assemblywoman Susan John said: “Thanks to the involvement of Governor Paterson, the GLOBALFOUNDRIES project will be completed timely and professionally, and the men and women who build it will be paid fair wages and benefits. This project, the largest public works project in the state, will help rebuild our upstate economy. I look forward to ensuring that more projects like GLOBALFOUNDRIES, a private/public investment, move forward to benefit our state and our families.”
Assemblyman John McEneny said: “I applaud the Governor for bringing these parties together to come up with a plan that will keep this public-private initiative going forward, which will create jobs and boost the local economy.”
Assemblyman Bob Reilly said: “I congratulate the Governor, local labor leaders, and GLOBALFOUNDRIES for working together to put in place a labor agreement that is another important step in the realization of this industry leading fabrication plant. This agreement moves Tech Valley one step closer toward becoming one of the country’s leading technology corridors.”
President of the NYS Building Trades Council Ed Malloy said: “The New York State Building and Construction Trades Council commends Governor David Paterson and his Administration for their efforts in assisting the Capital Region Building & Construction Trades Council and GLOBALFOUNDRIES come to a mutually beneficial Project Labor Agreement. This agreement assures that the $4.2 billion chip plant, the largest economic development project in our State, will be constructed in the best interest of the New York State taxpayers.”
President of the Greater Capital District Building and Construction Trades Council AFL-CIO Robert Mantello said: “After many months of talks, we are happy to announce that with the facilitation and leadership of the Governor’s office and the Senate and Assembly Majority Leaders, we have come to a resolution mutually beneficial to workers and the owner for the successful construction of this state of the art facility. This Project Labor Agreement is truly an accomplishment for the people of the Capital Region and the entire State, and the Council intends to continue in its role as a most valued and trusted business partner for the years to come. Of particular note, we’d like to express our thanks to Governor Paterson for helping make what was considered impossible, a reality, and to Senators Onorato and Breslin for championing this cause.”
U.S. Senator Charles E. Schumer said: “I am thrilled that GLOBALFOUNDRIES and organized labor have agreed on this project labor agreement. This transformative project will have even more impact now that we know it will be built by New York labor.”
U.S. Senator Kirsten E. Gillibrand said: “This is great news for the Capital Region. We have all worked hard to build this plant right here in Upstate New York, and now hundreds of families will benefit from these good paying jobs. During these tough economic times, GLOBALFOUNDRIES is creating 1,600 jobs in the Capital Region. I will continue working with the Governor and our Congressional Delegation to create new jobs across New York State.”
Congressman Scott Murphy said: “This announcement is great news for the 20th district as immediate investments will be made in our community to create thousands of jobs and jumpstart our state and local economy. Working together to reach agreements on important projects such as this is exactly what we need to bring business, economic development and competitiveness to New York. I applaud the Governor, GLOBALFOUNDRIES, the labor community and my colleagues in government for reaching this agreement so we can put shovels in the ground and people back to work.”