Northrop Grumman set to lay off 900 workers in Pascagoula, New Orleans

Biloxi Sun Herald ^ | Tue, Aug. 16, 2005 | Associated Press

[Willie Green]

For education and discussion only. Not for commercial use.

PASCAGOULA, Miss. - Northrop Grumman says it expects to lay off 900 employees in Pascagoula and New Orleans by the end of the year.

Phil Teel, president of Northrop Grumman Ship Systems, said a dip in the number of contracts that have been awarded to the company over the past few years led to the layoffs.

The company had anticipated layoffs for 2005 and 2006 before it begins increasing the work force in 2007 and 2008.

The layoffs were announced Monday in a special newsletter.

The cuts will affect 500 employees at Northrop Grumman Ship Systems' Ingalls operation in Pascagoula and 400 workers at Avondale shipyard in New Orleans.

Northrop Grumman Ship Systems is Mississippi's largest private employer, with more than 12,000 workers. The company is also one of the nation's largest defense contractors, with manufacturing plants in several states.

The first prediction of layoffs came in January. Since then, Northrop has taken several steps to ease the number of employees it would need to lay off. Through cross-training, it saved 320 employees and expects to save 200 more, but those were factored in before the number 900 was reached, company officials said.

"Despite our efforts, as successful as they have been, defense budget reductions, and shipbuilding program and schedule changes with regard to LPD 17-Class ships and the DD(X) Program have impacted the amount of work available to us over the next several months," Teel said in the newsletter. "Let me be clear. We are exhausting every option available to us to make the number of actual layoffs as small as possible."

The jobs lost will come from a cross-section including union crafts and the salaried personnel that support them. Determining which jobs will be cut and notifying employees will take place over the next several weeks, Teel said. It should be complete by the end of October.

The Ingalls yard employs 12,900 and Avondale less than 7,000.

[NerdDad]

Missippy Ping.

This is twice I've beaten WKB to the punch on a MS ping. I gotta start doing more work when I'm at work or my boss is gonna start blocking FR at the firewall again.

[mpackard]

This stinks, my husband is a contractor out there (and probably not in danger of being laid off) This site is union and the redundancy of the labor force is insane. My husband makes comments all of the time how they have 2 men for every one man job and that, usually, they both are sitting around. Hate to see it since there's so little industry in this community but I've wondered since I moved here how they justify the cost and the man power.

[onyx]

I had that same problem last night. WKB and B must be awfully busy men...lol.

[Bogey78O]

Don't worry. Mitch Landrieu's got a spiffy new office and once NG sees the nice furniture that a million bucks can buy they'll be glad to rehire everyone...and if that fails Mitch Landrieu can just have the state hire them to landscape his yard (for the benefit of the state naturally)

/sarcasm

http://www.freerepublic.com/focus/f-news/1464445/posts

[Virginia Ridgerunner]

I would not be surprised if the layoffs were in response to this mess:

http://www.mysanantonio.com/news/military/stories/MYSA072205.1A.uss_san_antonio.85f7f3b.html

http://www.pms317.navy.mil/ships/lpd17.asp

[MississippiMasterpiece]

Was this the same company that just got $50 or $60 million from Mississippi? Seems like I read the state issued bonds or something. Despite my screen name, I'm not a resident.

[trebb]

I worked there for a few months after I retired from the AF and before Northrup took over. I was amazed at how the union structure hosed the workers and they kept supporting it - makes no sense.

Another pisser was the way they would let a job fall behind due to other more lucrative jobs, then discover that the lagging job was going to change. At that news, the lagging job would become a rush order to get it completed before the change came in. That way they could charge for the original job, then get the big bucks for the changes.

[SuziQ]

As long as the shipyard has been there, there have been cyclical layoffs. When contracts expire, there is always a layoff, until the next contract comes along.

[Non-Sequitur]

My husband makes comments all of the time how they have 2 men for every one man job and that, usually, they both are sitting around.

Most of them have a relative named "Lott" somewhere in the family tree.

[mpackard]

Ha, possibly, but I think they're ALL related in some way.

[LibLieSlayer]

"When contracts expire, there is always a layoff, until the next contract comes along".

Very true!

I KNOW people that work there, and are affected. Two that I have spoken with plan on using the "time off" to deer hunt.

As long as ALL of the shipbuilding has existed in Jackson County, there have ALWAYS been lay-offs... and then months later a re-hire.

LLS

[NerdDad]

You are correct. This is the company that the legislature propped up with more of our tax dollars. But only after they (the legislature) bilked us for millions for their own pockets by forcing the Governor to call repeated special sessions to accomplish what should have been done during the regular session.

[WKB]

This is twice I've beaten WKB to the punch on a MS ping




I have a life, you know.
.........I know I do.

[KC_Conspirator]

In reality, these jobs will be shifted to a new naval yard. Pascagoula exists because of Trent Lott.

[Dat Mon]

Your story illustrates a growing problem we face in this country.

The problem is having a manufacturing and engineering infrastructure, and the high tech capability and budget resources needed to design and manufacture, and deploy state of the art military and defense related equipment.

Here are the players...the federal government ...including pols on BOTH sides of the aisle, the union establishments, industry executives and company management, Wall Street, the trial lawyer and other politically connected establishments, and last but not least...the workers themselves.

The philosophies in question are... making a quick buck yourself...or rigging the system so your buddy makes a quick buck, writing off of American industry, spending too many pork bucks, passing the buck, and doing a $hit job for good bucks..ie..lack of work ethic and pride in work product.

We have a system in place which IMO is a mess...and getting messier all the time. Our leaders seem to be reluctant to raise the issue of American competitiveness...and then come up with a plan which does not involve illegal immigration or trade agreements with third world nations. Some of our workers seem to be unable to grasp that we are in a global competition in which alot of other countries want to eat our lunch.

All the players mentioned above are IMO part of the problem..each in their own unique way wants to find an EASY way out...a short term solution....and there is none.

[Willie Green]

In reality, these jobs will be shifted to a new naval yard. Pascagoula exists because of Trent Lott.

So where's Dubya gonna shift 'em too?

India?

[KC_Conspirator]

I don't think so, but you never know with check pants Republicans.

I believe that money allocated for this will go to Jacksonville or Charleston.

[NerdDad]

I know, I know. I'm still trying to find mine too. If you stumble across it, send it back up here to the armpit for me.

It's just so rare that I get in ahead of you that I had to mention it. Besides, I didn't want to get flamed by anybody unaccustomed to having some strange person stun their beebers.

[RKB-AFG]

Interesting comments. You might be right.