THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Wednesday, November 29, 1995 TAG: 9511290399
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY DAVE MAYFIELD, STAFF WRITER
LENGTH: Medium: 81 lines
The leader of the union that represents about one-third of Virginia Power's employees said he is concerned that the electric utility's downsizing will increase workers' safety risks.
``We haven't bought into the reductions the way the company has projected them,'' said D.R. ``Cotton'' Sizemore, business manager for the International Brotherhood of Electrical Workers' System Council U-1.
Sizemore said he thinks the utility, which began a massive restructuring last March, is overestimating the competitive threats it faces. The pace of job reductions needn't be as quick, he contended.
``Are there improvements to be made? Sure,'' the union leader said. ``We don't contest making improvements. . . . But there are ways to do it that are not as painful.''
Sizemore, whose union represents about 3,600 of Virginia Power's 10,500 employees, said the utility should rely more on attrition to reduce its work force.
He confirmed that the Richmond-based company has offered a severance package that would, among other things, entitle displaced workers to a job-search allowance. But he said union leaders unanimously rejected the offer because the company's terms were too steep.
In return for the severance package, the union would have had to abandon a seniority system that preserves the jobs of employees with the most years' experience. The system would have been replaced with one in which the company decided whom to terminate based largely on its own evaluation of workers' skills and job performance.
Of the 850 jobs that Virginia Power has so far said will be eliminated as part of its Vision 2000 reorganization, about 180 are held by workers represented by the IBEW, Sizemore said. Some sizeable parts of the company - including nuclear plants and field operations - haven't been subjected to a close cost-cutting analysis.
But already at the current pace, the involuntary terminations planned by the company would be the largest ever affecting the union bargaining unit, Sizemore said. In previous downsizings, he noted, the company has relied primarily on attrition, early retirements and buyout incentives.
Perhaps the most critical concern the union leader raised in a wide-ranging interview was safety.
In the power plants that have completed ``re-engineering'' studies related to Vision 2000, about one in four workers will lose their jobs.
Sizemore said many of his union members are worried that the plants cannot be operated as safely with so many fewer employees. The company's plan to expand the authority of equipment operators to take machinery out of service for repairs is of particular concern, he said.
Virginia Power has not adequately trained its employees for their added responsibilities, he said. He said it is vital that the utility train workers to understand the inner workings of entire operating systems, not just particular pieces of equipment.
Bill Byrd, a Virginia Power spokesman, defended the utility's decisions. He described the reorganization process as ``systematic and disciplined,'' and said the company has no choice but to sever employees because competition is emerging too fast.
An increasing number of customers of electric utilities are gaining the authority to shop for power, Byrd said. That means Virginia Power must cut costs to keep its rates competitive, he said.
``This has been a top-to-bottom redesign of the work processes,'' Byrd said of Vision 2000. ``We are finding that we can do things differently with fewer people and be just as safe and more efficient.''
Byrd said it is unfortunate that union leaders rejected the company's severance-package proposal. He said Virginia Power is relying on skills assessments and performance evaluations instead of seniority as it decides which non-union employees to sever or retain. Those employees are entitled to up to 18 months of severance pay and an allowance of between $5,000 and $10,000 for job-search assistance, he said.
Virginia Power is ``clearly and unequivocally'' committed to keeping safety standards high, Byrd insisted. ``We will not operate our plants unsafely.'' He said all workers will be thoroughly trained to safely perform more complex jobs.
In spite of the assurances, Sizemore said he remains concerned. ``I don't think it's their intention'' to compromise safety, he said. ``But I think that to get to the bottom line they may lose sight of everything else.'' by CNB