The Virginian-Pilot
                            THE VIRGINIAN-PILOT  
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Saturday, June 8, 1996                TAG: 9606080378
SECTION: BUSINESS                PAGE: D1   EDITION: FINAL 
SOURCE: BY JAMES SCHULTZ, STAFF WRITER 
                                            LENGTH:   46 lines

CHESAPEAKE FIRM ANNOUNCES FIRINGS LOCKHEED-MARTIN GAVE NOTICE TO 86 OF 107 WORKERS; FACILITY MIGHT CLOSE.

A Chesapeake-based facility responsible for repairing, maintaining and managing several worldwide military training systems has substantially cut its work force and may close.

Pink slips were handed out Friday to 86 of the 107 workers at Lockheed-Martin Training and Technical Services in Chesapeake. Employees received 60 days' notice that their jobs will be eliminated in early August.

``This is consistent with what we do in terms of sizing the work force to the business at hand,'' said Lockheed-Martin spokeswoman Joanne Hvala. ``It has not been decided whether or not to close the Chesapeake facility. It's contingent upon a program we're in competition for right now. If we don't win, it seems definite we'll shut it down.''

Even if the company does not win the work, none of the 21 workers spared in the layoff will forfeit their jobs, Hvala said. Instead, they will be transferred to a Lockheed-Martin office elsewhere in Virginia.

Among the systems managed by the Chesapeake facility is the Miles Army Combat Training Program, which uses lasers to simulate battlefield weaponry. The Miles system is part of a $70 million, five-year contract that will soon expire.

Should Lockheed-Martin snare new work, more employees probably will be hired. However, none of those let go will be brought back. Any new contract would involve different technology and different skills, Hvala said.

Fired workers will be entitled to severance pay on the basis of seniority, Hvala said. The minimum will be two weeks of pay for one year's work. The maximum is 16 weeks of pay.

Workers were not permitted Friday to comment on the layoffs.

``This is very hard for people,'' Hvala said. ``We're hopeful those (fired) will find jobs.''

The Chesapeake operation was originally based in Norfolk. It moved in 1992 to a 31,000-square-foot complex on 7 acres in Cavalier Industrial Park, when the business was owned by Loral Corp. Loral had acquired it in 1990 from Ford Aerospace Corp. Lockheed-Martin is the latest owner.

In 1992, heralding the arrival of then-Loral to his city, Chesapeake Mayor William E. Ward described Loral as ``a growth and stable corporation with a bright future.''

KEYWORDS: LAYOFFS by CNB