In Privatization Limbo

August 30, 1996

THE DAILY FED

In Privatization Limbo

Employees at Newark Air Force Base, Ohio, were just starting to feel comfortable with the privatization-in-place plans that were going to make them employees of Rockwell International when the company announced the sale of its aerospace and defense businesses to Boeing Co. on Aug. 1.

The Defense Department had awarded Rockwell a $264 million contract to repair missile and aircraft guidance systems at the Newark facility, which had been targeted for closure. The announcement of the $3 billion sale to Boeing came just weeks before the privatization was to have been completed.

It's still unclear exactly what the sale will mean for Newark employees. Rockwell spokesman Terry Francisco has been quoted in press reports as saying Boeing would continue the privatization plans and make no employment changes. Francisco declined to talk to Government Executive about the sale, referring questions to Rockwell's Tony Panella at Newark. Panella could not be reached for comment.

In the meantime, "It's an uncomfortable position to be in," said Bruce Tolle, president of the American Federation of Government Employees local at Newark. The base is scheduled to close at the end of September, and Boeing is scheduled to take over a couple of weeks after that. "There are lots and lots of questions but not very many answers," said Tolle.