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ANTITRUST LAWS ENDANGERING U.S. JOBS, WESTINGHOUSE CHAIRMAN STATES

 ANTITRUST LAWS ENDANGERING U.S. JOBS, WESTINGHOUSE CHAIRMAN STATES
 PITTSBURGH, Jan. 13 /PRNewswire/ -- Current U.S. antitrust laws are endangering the jobs of U.S. workers and the businesses that employ them, Westinghouse Chairman Paul E. Lego told a Congressional hearing on international trade today.
 Testifying at the hearing held by U.S. Sen. Arlen Specter (R-Pa.) under the auspices of the Senate Judiciary Committee, Lego said that while antitrust laws were meant to protect consumers when originally enacted, today, "they're hurting U.S. workers."
 Lego said that Westinghouse was concerned with a number of other international trade issues, such as:
 -- Industrial subsidies to foreign competitors by their governments.
 -- Restrictions by foreign governments on in-country acquisitions by U.S. companies.
 -- Foreign government procurement rules that close their markets to U.S. goods.
 He said the antitrust issue had "increasingly grave consequences."
 As an example of how outdated antitrust laws are affecting U.S. companies and workers, Lego cited the electrical distribution and control market sector, in which Westinghouse is a major player. Last year, a French company, Schneider, entered the U.S. market, which totals about $7 billion annually. Having tried and failed to enter the market directly, Schneider bought one of the top three U.S. companies, Square D.
 Combined with earlier acquisitions in France and Canada, Schneider with the Square D acquisition became the largest distribution and control equipment maker in the world with global sales of $3 billion, Lego said.
 "The sad irony here is that this foreign competitor was allowed to do with impunity what would be absolutely impossible for a U.S. company to do. If either Westinghouse or General Electric attempted to buy Square D, the Justice Department would have stopped it cold.
 "Could Westinghouse or GE have preempted this unfortunate development by turning the tables and buying Schneider? No. The French government would have stopped us -- cold," Lego said.
 Lego said that in this business, economies of scale are very important to commercial success. "Bigger players can dominate the market."
 He said the former Square D company is now part of a global colossus. "Will they use their new economies of scale in research and development, manufacturing and distribution as competitive weapons? Most certainly they will.
 "Will this take sales, profits and jobs from Westinghouse, General Electric and other domestic companies? That is certainly Schneider's intent," Lego said.
 The executive said Westinghouse, like many other U.S. companies, cannot create new products, profits and jobs if "our hands are tied by outmoded U.S. laws."
 He said that the laws were outmoded, written when global markets were non-existent. "It's time to re-examine these laws in light of the new reality -- namely to protect U.S. jobs and businesses, we must be competitive in global markets," Lego said.
 -0- 1/13/92
 /CONTACT: Paul B. Jones of Westinghouse Electric, 412-642-3713/
 (WX) CO: Westinghouse Electric Corporation ST: Pennsylvania IN: SU:


CD -- PG011 -- 9051 01/13/92 11:30 EST
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Publication:PR Newswire
Date:Jan 13, 1992
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