Roanoke Times Copyright (c) 1995, Landmark Communications, Inc. DATE: SATURDAY, June 4, 1994 TAG: 9406060153 SECTION: CURRENT PAGE: NRV-1 EDITION: NEW RIVER VALLEY SOURCE: DATELINE: FAIRLAWN LENGTH: Medium
Wackenhut, the largest provider of security to the federal government, won the contract by underbidding Hercules Inc., the operator of the plant and the sole provider of security and fire services there for 50 years.
Currently, 60 employees work in security and fire service for Hercules, said Nicole Kinser, public affairs officer at the arsenal. The salaried workers were notified some weeks ago that their official contracts would be up July 1, when Wackenhut's one-year contract begins.
The change may not mean the loss of many jobs, but it may mean cuts in pay for the Hercules workers who now do the job, said Robert Kneip, senior vice president with Wackenhut.
"Someone who's had 20 years of longevity is not going to start out at the same level when they're starting with a brand new contract," Kneip said. Wackenhut will begin interviewing Monday, and the company will try to hire as many of the existing, qualified Hercules workers as possible, he said.
"Understandably, I think people are concerned about their jobs and their employment," Kneip said. He said Wackenhut will use about the same number of workers as currently employed by Hercules.
Wackenhut bid approximately $3 million in winning the security and fire service contract. Hercules' bid was not released.
Kinser could not release figures on the average pay of the Hercules workers, and Kneip said it would be inappropriate to estimate what the company's staff would be paid.
Wackenhut, which has also bid approximately $750,000 to take over janitorial services, was able to enter a lower bid because of its size and worldwide access to products and, possibly, because it will not be paying salaries that have escalated with pay raises over the years.
"A new employer doesn't have that legacy," Kneip said.
For Hercules, which as plant operator will oversee Wackenhut's sub-contracting role, Kinser said: "It's just good business to go with the cost savings."
by CNB