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LG&E ELIMINATES CONSTRUCTION, OTHER JOBS IN COST CONTROL MOVE

 LOUISVILLE, Ky., Oct. 29 /PRNewswire/ -- Louisville Gas and Electric Company (LG&E) today announced that it is eliminating 292 positions, the majority of which are management and union jobs involved in power plant and facilities construction. Other affected positions are in warehouse and janitorial services. Affected employees were notified today but will be employed for the next 60 days.
 The company plans to offer all affected salaried employees an enhanced separation package, which will include outplacement counseling. Discussions have also been opened with representatives of IBEW Local 2100 on the possibility of negotiation separation benefits for affected union employees who are to be involuntarily separated.
 Since 1986 the company has reduced by nearly half the number of employees in its Construction work force through normal attrition, redeployment and early retirement programs. Most recently, the company conducted extensive studies and analyses to determine the best way to match its work force with its future capial plans, which do not include major construction activities. The company explored numerous alternatives with a variety of sources, including a management/union team. However, the senior management of the company concluded that the elimination of jobs was unavoidable.
 A company initiative that automated its warehouse functions and consolidated them into one facility requires fewer employees in that area. A review of janitorial services showed that the work can be performed more competitively with outside sources.
 "We have an obligation to our customers to operate the company in the most cost-effective manner possible, and that includes constantly reviewing what we do, how we do it and with what resources," said Steve Wood, Senior Vice President and Chief Administrative Officer, and Acting President of LG&E. "This decision was difficult and was reached only after careful consideration and review. It was the only decision to make in the long-term interest of our customers, employees and shareholders."
 -0- 10/29/93
 /CONTACT: Paul Heagen, LG&E, 502-627-2877, office, or 502-228-9763, home/
 (LGE LOU)


CO: Louisville Gas and Electric Company ST: Kentucky IN: UTI SU: PER

DF -- CH007 -- 8607 10/29/93 14:59 EDT
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Publication:PR Newswire
Date:Oct 29, 1993
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