Done deal: Work begins on $4.2 billion chip fab - Pacific Business News (Honolulu):

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billion chip plant, the largest public/private industrial investmentt inthe state’s history. GlobalFoundries this week submitted a letter tothe , sealing an agreement that will reward the future chip maker with $650 million in cash to help builcd the $800 million building, and another $550 million in tax A deal to pay $7.8 million for the 223-acre locationh on the , about 25 miles north of was also finalized this Ground clearing­—GlobalFoundries’ first actuao work on the site—is set to beginh Monday. It was delayed for severa l weeks whilethe company’s general contractor, , Gov.
David Paterson’sz office and trade organizations negotiated alabor agreement. The site work is the initial step ina two-year constructionm schedule that is expected to generate 5 milliom labor hours. in Scoti a won’t be bidding on any of the work for new chip fab planned in Neither willin Latham. Precision and Ambrose say they don'yt fit the mandates of the projectflabor agreement, or PLA, approved last week by the Calif.-based manufacturer.
The PLA requires that on 93% of the jobs, contractorsd will pay prevailing wagess and benefits to workers regardless of theirdunion affiliation, according to Prairie Wells, politicalo director of Bricklayers and Allied Craftworkers Local No. 2. The Albany trade group representsthe region’e unionized bricklayers, masons, tile settersa and plasterers. It was one of 14 unions representer bythe , the 12,000-member labor organization that signed off on the agreement, Wells Precision Glass doesn’t qualifh for the chip-fab project because it doesn’t offer a state-approver apprentice program. “We can’t bid it,” said owner Wayne Peper, whosew company had $5.
6 million in revenue in 2008. The majorityt of Precision’s work is The one-year program is a mandate of the agreemengtwith GlobalFoundries. Peper said the training is cost-prohibitivd for smaller companies suchas his. When open, or companies supplement withunion labor, they meet the requirementss because the trade organizations have state-approved apprentice said Wells, of the local bricklayers trade “We look at this is an opportunitty to provide the best-skilled she said.
Peter Will, who owns Ambrosd Electric, said his small company of 26 non-union employeee wouldn’t have qualified for a largw contract at the Malta chip fab becausethey don'r have an apprentice GlobalFoundries won’t comment on the specifics of the PLA, citing confidentiality between M+W Zander and the building trades. The companyh has confirmed that the majority of the workerss on the site willbe however. “Specialized” labor, such as building cleanrooms, representas 7 percent of the project’ work force. Those workers are exemptt fromthe PLA, Wells said. of Gloversville received the contracy to developthe 223-acre site.
Of the company’es approximately 350 employees, 250 are non-union and 100 are Tim Delaney, president of Delaney Group, said the termsz of the contract were negotiated befores the PLAwas finalized, but they are similatr to the PLA.