New York 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

June 3, 2009 -- New York 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.

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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.

Source: New York Governor