Lucent offers early retirement plan

Journal Record, The (Oklahoma City), Feb 25, 1997 by Bill May Journal Record Staff Reporter

Union members at Oklahoma City's Lucent Technologies plant have approved a ground-breaking labor contract to make the plant more competitive while cutting the number of jobs there.

The contract includes an early retirement provision for hourly workers.

There could be 450 fewer jobs at the plant April 1 when the early retirement provisions become effective. Members of Local 2021 of the International Brotherhood of Electrical Workers union "voted overwhelmingly" in favor of the plan, the company announced Monday. Members of Local 1599, which represents clerical and salaried employees at the plant, are not included in the early retirement. Employees who retire under this plan will not be replaced, according to plant spokesman Ed Beltram. Other details of the contract were withheld because officials "don't want the competition to know what we're doing." "This is a new ball game," Beltram said. "We are now a competitive company in a very tough market." About one-third of the company's 3,100 hourly workers are eligible for early retirement. It is estimated that 450 will volunteer to take it, the company announced. Total employment at the plant is about 4,500. Details will be sent to eligible employees within a week, then they have 15 days to make a decision, Beltram said. The effective date of retirement will be April 1. Although details were not released, the contract "breaks new ground" on measures to make the factory even more competitive, according to a company announcement. Not replacing retiring employees means those remaining must be more productive, but the way of increasing the productivity was not disclosed. Jim Styring, vice president in charge of global provisioning and manufacturing at the Oklahoma City facility, has worked with Jim Walls, president of Local 2021 and Alice Duncan, president of Local 1599, for the past year to come up with the new agreement, Monday's announcement read. It will help the factory of 4,500 employees be more competitive in the global telecommunications equipment market and invest in the factory's future. Besides offering the early retirement incentive, the plan offers "new innovative ways to run the factory," the announcement read. "The plan that has resulted from our discussions (with union leaders) will position the Oklahoma City factory to be more competitive," Styring said. "Our technology is constantly evolving and we have to continually update the ways we do business to remain successful." Lucent Technologies was formed last year as a spin-off from AT&T. Since that time, 800 jobs have been added. The factory came to Oklahoma City in 1957 under the name of Western Electric and took the name of Lucent Technologies in February 1996 after the spin-off was announced. The spin-off was finalized in October. Records in production, quality and safety were set last year, Beltram said. A global provisioning center, under construction at the plant, will increase the scope and responsibilities of the Oklahoma City Lucent facilities.