Bethpage-Tribune_1994-09-30

              Bethoano
YOUR OFFICIAL HOMETOWN NEWSPAPER
Serving Bethpage, Island Trees, Plainedge, Seaford, Old Bethpage & P ainview
VOL. 27 NO. 39 SEPTEMBER 30-OCTOBER 6, 1994
Northrop Grumman Announces
Work Force Reductions,
Early Retirement Program
Northrop Grumman Corpora­tion,
citing the need both to cut
costs ahead of projected sales
reductions and to continue ongo­ing
efforts to streamline opera­tions;
announced today it wil
reduce its work force byJ9.0Q0
people over the next 15 months.
The company's current employ­ment
stands at 47,500.
Northrop Grumman also
announced that it will bring the
terms of the main retirement and
benefit plans of the company and
its Grumman subsidiary into con­formance
with each other begin­ning
next year, and that it will offer
a Voluntary Early Retirement Pro­gram
to approximately 5,000 elig­ible
employees currently enrolled
in the main Northrop Retirement
Plan. In addition, the company
said its Board of Directors
approved a one-time increase for
retirees who belong to the main
Northrop Retirement Plan.
The company said the costs
associated with the early retirement
plan and retiree economic adjust­ment
will be paid by the company's
pension plan and will not have a
significant impact on current cash
projections. The company added,
however, that a 60 percent accep­tance
rate in the early retirement
program would result in a one­time
charge against earnings in
the fourth quarter of approxi­mately!:
$300 million to reflect the
plan's increased actuarial liability.
The exact amount of the charge
will not be known until after the
Nov. 15, 1994, acceptance
deadline.
Northrop Grumman said most of
the work force reductions will
take place at facilities in Califor­nia,
New York and Texas. The
company said it could not deter­mine
how many reductions will be
accomplished through layoffs
sippe .the total will depend'.on.'
25 CENTS
normal attrition, the number of
employees,who take advantage of
the early retirement program, and
other voluntary reduction-in-force
programs already in place at
Grumman operations.
'The reductipn of our work force
is a painful but Tfecessaiyslfepto J
reduce our costs ^and position
Northrop Grumman Corporation
as a leaner, streamlined company
with the competitive posture to
meet the quality and affordability
demands of our customers," said
Kent Kresa, Northrop Grumman
chairman, president and chief
executive officer.
Mr. Kresa said the actions
announced today address the key
human resources issues the com­pany
currently faces as it con­tinues
to consolidate its activities.
The company is still in the process
of evaluating its future facilities
requirements. Decisions on those
issues are expected to be reached
later this year, he said. He added
that the company is in the process
of analyzing employee benefit and
facility issues at Vought Aircraft
Company, the acquisition of
which was completed last month.
Work force reductions in Cali­fornia
are expected to total
approximately 4,500 workers—700
by the end of 1994. This includes
the previous.1 reduction of 2,400
employees assigned to the B-2
stealth bomber program in Pico
Rivera and Palmdale. The com­pany's
Military Aircraft Division,
based in Hawthorne, will reduce
its work force by 1,600 people by
the end of 1995, and the com­pany's
electronics unit in Haw­thorne
will reduce its employment
by about 500 people. The reduc­tions
at both units will result from
lower business volume and con­tinuing
efforts to achieve
efficiencies.
(Continued on Page 4)
Getting Tough On ffleg
Posted Signs and Notes
-n SSfT!
Oyster Bay Town Councilman Louis G. Savinetti (third from left)
joins with Code Compliance Inspectors from the Town's Department
of Planning and Development, who, at the request of the Town Board,
have stepped up the removal of notices illegally posted on utility poles
throughout the Town. Councilman Savinetti said the unsightly notices
were an illegal eyesore that would not be tolerated. Joining in the
talk to remove the signs (left to right) were EHeen Cannizzaro, Joe
Sciacca, George Baptista, Tom Burke, Neil Bergin, Josephine Zollo
and Tim O'Donnell.
THIS SATURDAY!!
OCTOBER 1,1994
IS
BETHPAGE
DAY
AT THE BETHPAGE COMMUNlllY PARK
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* FLEA MARKET * MERCHANDISE
* LOCAL ORGANIZATIONS * FUN * FUN
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