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October 9, 2011 6:46 PM

GE's Jeff Immelt: The controversy over U.S. jobs

By
Overtime Staff
Topics
Correspondent Candids

The role of the jobs czar in this country is to get Americans back to work, so it makes sense that the title is now being held by the CEO of one of America's largest corporations: GE's Jeffrey Immelt.

But Immelt's success is only partially built on American jobs. Half his workforce is overseas and he is unapologetic for it, as you'll see in Lesley Stahl's "60 Minutes" piece this week, "The Jobs Czar."

On Overtime, we take a look at some of GE's projects back home in the U.S., where Immelt has put an emphasis on research and development - R&D - to develop everything from enhanced breast cancer imaging equipment to a better battery.

"He thinks that all big American corporations should be investing a lot in future technologies," Lesley Stahl tells Overtime. "And he's put his money where his mouth is. He's tripled the budget at GE for R&D."

One stop on Immelt's R&D tour: solar energy research. Seemingly unfazed by the unrealized promises and downright failures in the world of solar energy, Immelt thinks the technology holds great promise. And he believes GE can outdo the competition because of the company's expertise in engineering.

"The mistake we make is by not making enough bets in markets that we're experts in," Immelt says.

On Overtime, GE tells Lesley that it will create 300-400 jobs when it builds the largest thin film solar plant in the country in the near future. That news might take a bit of sting off another recent announcement: GE is moving its 115-year-old x-ray unit from Waukesha, Wisconsin, to Beijing. It's all in a day's work for the U.S. jobs czar . . . whose day job is as a global CEO.


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by JanekMuzykanr October 14, 2011 4:14 AM EDT
What a pathetic puff piece. This is journalism? Where are questions about their taxes (i.e $0.00 in 2010). Is this what a conservative, real business person would be treated like? She glamorizes this crony capitalist/socialist. CBS has become unbearable.
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by Benjamin_Fox October 12, 2011 6:13 PM EDT
I'd appreciate the opportunity, as a GE Healthcare employee, to offer a brief but important clarification to this article. The article references "another recent announcement: GE is moving its 115-year-old x-ray unit from Waukesha, Wisconsin, to Beijing."

GE is not "moving its 115-year-old x-ray unit from Waukesha, Wisconsin, to Beijing" Wisconsin to China. This was misreported by some political blogs. On July 25 of this year, GE announced that four X-Ray executives and the titular X-Ray headquarters were being transitioned to Beijing. The GE X-Ray team and existing unit in Wisconsin, around 150 employees strong, is not leaving Wisconsin and is not being closed down. GE's X-Ray team will continue to function as a global team serving a global business with global customers, and will continue to have major global hubs in and around Wisconsin, Paris, Beijing and Bangalore.

Thank you for the opportunity to clarify a fact in this article that may have caused confusion.

Benjamin Fox
GE Healthcare
benjamin.fox@ge.com
Reply to this comment
by 99percenthardworker October 12, 2011 5:00 PM EDT
Jeff is full of crap! He has made over $20mil a year in pay and stock for the last 10 years and will say anything to keep his job. He has shown no direction or imagination in his 10 years. His company has eroded by 25% by making huge bets on real estate and capital markets and is now shipping jobs overseas! What a hypocrite! The interview was a scam made to look like a photo op!
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by JJ8NewNews October 11, 2011 3:49 PM EDT
I was surprised to hear no challenge to the statement by Jobs Czar Jeffery Immelt that implied GE was in full control of their intellectual property and it was not going to the Chinese. Below is an excerpt from an e-mail from Senator Jim Webb [D.VA] announcing his introduction of a bill to stop technologies developed with the support of U.S. taxpayers from being given away to China or other countries. Wake up America! Don't slide into third world status in ignorance.

"Examples of China profiting from U.S. taxpayer-funded technologies:

• General Electric has transferred valuable aviation avionics technology to state-owned Aviation Industry Corporation of China. The U.S. government has long supported the aviation industry through procurement initiatives and federal research projects. The fruits of U.S. taxpayer support will now be incorporated into Chinese commercial airliners, in line with Beijing's desire to develop an internationally competitive aircraft industry that could rival U.S.-based Boeing. (Source: The Washington Post)

• Westinghouse Electric has transferred more than 75,000 documents to Chinese counterparts as the initial phase of a technology transfer agreement in exchange for a share in China's growing nuclear market. These documents relate to the construction of four third-generation AP1000 reactors that Westinghouse is building in China. U.S. taxpayers supported the development of the AP1000 as well its predecessor, the AP600, through decades of nuclear energy research and development at the Department of Energy (DOE). Moreover, the DOE Nuclear Power 2010 program provided years of government support for the design and licensing of this reactor. (Source: The Financial Times)

• Ford Motor Company is looking to share certain proprietary technologies for electric vehicles in exchange for selling cars in China. The electric vehicle sector has enjoyed significant federal R&D funding, loan guarantees, and public-private partnerships funded by U.S. taxpayers. In 2009, Ford Motor Co. received a $5.9 billion loan guarantee from the Department of Energy to advance its vehicle technology manufacturing program. (Source: The New York Times)

A U.S. Chamber of Commerce report warns that China's "persistent" intellectual property theft is "compounded by the indigenous innovation industrial policies which compel technology transfers in order to have access to the China market."

In a January 2010 letter to Obama Administration officials, the heads of 19 U.S. business and industry associations—including the Business Roundtable, the National Association of Manufacturers, and the Chamber of Commerce—wrote of "[s]ystematic efforts by China to develop policies that build their domestic enterprises at the expense of U.S. firms and U.S. intellectual property."

Read the Richmond Times-Dispatch story on my legislation..." [Jim Webb]
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by DenverBroncofan October 10, 2011 4:14 PM EDT
The fact that GE has all of their money banked in offshore accounts, it is out of the reach for tax collecting, why do we patronize this company and reward the CEO who is responsible for this
action of an American business?
================================================================

Their money may be in offshore accounts, but they are one of the few big corps out there that do outsource, but they outsource to AMERICAN companies.
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by wjm2125 October 10, 2011 2:58 PM EDT
Leslie Stahl chickened out. When Jeff said "my name is not over the door...I have to answer to stock holders...." Leslie should have asked him how many shares or options he owns of GE.

You want Americans to root for you Jeff? Have some faith in us. STOP sending your jobs out of the country. Then we will root for you.
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by Demoserver October 10, 2011 9:19 AM EDT
The fact that GE has all of their money banked in offshore accounts, it is out of the reach for tax collecting, why do we patronize this company and reward the CEO who is responsible for this
action of an American business? He is indeed dispicable it even shows on the smirk he shows in
photos. If that company and it's CEO were to pay a fair share of taxes, more could be done to help our economy. Just think what could happen if all of the multi millionaires and their money pits were to do the same.
Reply to this comment
by JavMD October 10, 2011 11:00 AM EDT
just more mistakes by the junior senator from Illinois, elected by the cool aid drinking Americans...

Ask some American GE based divisions,... like Transportation in Erie PA... worst plant I have seen in 30 years
by EddieYork November 1, 2011 5:24 PM EDT
Enough of defending our Constitution with Facts about the Corrupt Obama Administration and his disregard for Americans. It is long past due that we get rid of this f#cking ****** and his false promises of transparency. This ****** has done more to divide this country than any man ever has. If this wants a f#cking war let us give him one...let us not lose our country without a brutal fight. F#ck you Obama.
by bcpats October 10, 2011 9:16 AM EDT
Just another example of how Obama works. Nevermind the ethics of the person he hires......... just gimme the money.
Reply to this comment
by Anotheryahoo October 10, 2011 9:22 AM EDT
This what our govt has become. Both parties are guilty.
by rightbehind October 10, 2011 8:54 AM EDT
The wealthy are trying to build their global economy because they think they'll be sitting at the head of every table. They'll be in for surprise when the other countries get tired of playing economics. Those countries have US technology now and are more than likely tired of playing dead. The next battle will be for resources. The world is in very deep trouble now because the playing field has been leveled. Technology vital to US national security has been allowed to leave our borders to line the pockets of republican neocons.
Reply to this comment
by chevyhotrod October 10, 2011 9:52 AM EDT
"Technology vital to US national security has been allowed to leave our borders to line the pockets of republican neocons."

What a ridiculous statement, might want to research the technologies that were handed over to China during the Clinton Administration and the Pay to Play Chicago Way of the Obama Administration.

BOTH PARTIES DO IT AND FOR YOU TO SINGLE OUT REPUBLICAN NEOCONS JUST SHOWS WHAT AND IDOLOGIALY GAME YOU PLAY WITH YOUR DEMOCRAT TALKING POINTS AND UGLY PROGAGANDA.

When GE was run by Jack Welsh, Jr. for 20 years, a Conservative Republican, created one of the most respected companies in the entire world.
by Goofer-Buddy October 10, 2011 8:45 AM EDT
For Sale: American Jobs, only lowest bids accepted.

Our government and our captains of industry have combined to sell american jobs for short term profits. These people are not captains of industry; but are treasonous economic greedy cowards.
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