Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, April 7, 1990 TAG: 9004070053
SECTION: BUSINESS PAGE: A7 EDITION: METRO
SOURCE: GEORGE KEGLEY BUSINESS EDITOR
DATELINE: LENGTH: Medium
Richard Lewis, president of ITT Electro-Optical Products Division, said he fears that an undetermined number of the plant's 1,100 employees will be laid off "unless there is a major change in circumstances."
He expects a decision on the layoff issue will come out of a study to be completed by the end of April.
While the Army awarded a maximum-level $164-million contract renewal to his division for the latest Generation III goggles two weeks ago, no orders were placed for Generation II, normally accounting for 10,000 to 15,000 units produced each year at the Hollins plant.
"It is very difficult to be price competitive if we cannot find additional Generation II" markets, Lewis said.
Two options to be studied are the possible manufacture of more components for the goggles, rather than buying them, and whether to slow production, now running on three daily shifts as required by the Army.
Since the plant has about a half-year backlog of orders for the Generation II goggles, including several contracts with foreign military forces, Lewis said any layoffs "will not be in the immediate future . . . We still have time for an orderly plan."
The division president said he is "anxious to minimize the impact" of any reductions in the work force, as required by stipulations in the labor contract with the International Union of Electronic Workers.
In the study, Lewis said his staff will look at prices of goggles parts to see if the Roanoke plant can make them at lower prices and whether it has the right tools for that job.
The plant has had a traumatic experience in its "considerable" buildup of work force and production in the past several years "and now it will be traumatic to see whether we can hang in there."
Lewis said this is not a specific instance of a defense cut but the Army is acknowledging fewer requirements and a smaller size.
He said his plant is on the front end of belt-tightening that he expects will come to all defense industries.
"Fortunately," he said, the Army sees "a great need for night vision goggles," as reported by U.S. Sen. John Warner, the ranking Republican member of the Senate Armed Services Committee.
Lewis said he hopes the lack of a contract for the older model devices "will not have a profound impact over the long haul. We are still a healthy, viable, contributing member of the business community."
by CNB