Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, May 13, 1995 TAG: 9505150049
SECTION: BUSINESS PAGE: A-6 EDITION: METRO
SOURCE: STEPHEN FOSTER STAFF WRITER
DATELINE: FAIRLAWN LENGTH: Medium
Alliant Techsystems Inc., which took over operation of the arsenal in March, said it will allow workers the opportunity to leave voluntarily before it decides who will be forced to go.
Were 110 workers to voluntarily decide to leave, no production employees would have to be laid off in June. However, "I think that that's unlikely," said Nicole Kinser, the arsenal's public affairs officer.
The offer would allow workers who are at least 50 years old and with 10 or more years of experience to receive pension and severance pay. Younger employees who think they could get jobs elsewhere can also opt to leave; however, their severance packages would be no different than if they were laid off.
The Oil, Chemical and Atomic Workers International Union and Alliant both pressed the U.S. Army, which owns the plant, to make the offer, which employees can accept between Monday and May 26.
Selling the plan to the Army had been difficult because of the up-front costs. In the long run, however, it should work to the arsenal's benefit, Kinser said.
"Who's to say that there's going to be anything like this in the future?" Kinser said.
"We wanted it," said Michael Smith, president of Local 3-495 of the union. "Obviously, a [layoff] was going to take place."
Ordinarily, in the midst of a forced layoff, an unaffected worker could not leave without sacrificing severance pay or pension benefits. But under the company's offer, Smith said, some workers who may have been forced to leave will be able to stay on, and those who want to go can leave without losing money.
"It's a one-time shot," Smith said. "If you want it, there it is."
Smith said he had no idea how many workers would take the offer.
An early retirement plan has been offered only once before, in 1992 by the arsenal's former operator, Hercules Inc. Then, 73 wage earners signed up. Seventeen salaried workers did, too, though they are not eligible this time.
After reviewing the sign-up, Alliant will decide in June how many other workers will be released. In addition to the 110 wage earners, some salaried employees will be laid off, Kinser said, but she did not know how many. However, "it's not a large number."
The arsenal employs 1,339 workers, less than half the number who worked there just three years ago. More than 400 workers were laid off last year.
by CNB