Relief and Uncertainty at Rocketdyne
We could have done a lot worse. That was the reaction of Rocketdyne workers here Thursday after learning that Boeing Co. will buy most of Rockwell International’s aerospace business.
“Boeing is a powerful company and certainly their emphasis is on airplanes and things that fly. Basically, the response here has been positive. I haven’t really seen people in a negative mood,” said John Mitchell, editor of a Rocketdyne newsletter.
Paul Segura, a machine tool specialist who’s been with Rocketdyne for 15 years, said: “I’m very optimistic. Rockwell is wanting to get out of the aerospace business, and Boeing is very committed to that [business]. I feel it’s to our advantage.”
For months, rumors were flying that McDonnell Douglas or Boeing would buy the aerospace company because Rockwell wanted to concentrate on its commercial electronics business. At least now the 3,600 Rocketdyne workers at two plants in Canoga Park, and the 600 employees at the Santa Susana Mountains plant, know who their new boss will be.
Rockwell’s space and defense business has 21,000 employees--most of them in Southern California--and Boeing, the commercial airline giant, said it hopes any job cuts will be covered through normal attrition.
So will any Rocketdyne workers lose their jobs? “In all honesty I have no answer for that,” said Rocketdyne spokesman Paul Sewell.
Like many aerospace companies, Rocketdyne has felt the sting of downsizing this decade, and its Canoga Park and Santa Susana staffing has shrunk by more than half, down from more than 9,000 employees in 1990.
Segura isn’t worried about any more layoffs. “They’ve already cut us down here,” he said. “We’ve already been thinned out.”
And because Boeing’s aerospace business won’t overlap as much as McDonnell Douglas would have, he said, “There won’t be any subsequent layoffs, because Boeing’s business won’t be duplicated here.”
But a survey of Rocketdyne workers out for a lunchtime walk in Canoga Park showed a mix of relief tempered with uncertainty.
“They always say there’s no immediate plans for layoffs. But you know what that means,” said a Rocketdyne computer programmer, a 16-year veteran who didn’t want to be identified. “Boeing is better than nothing. I really don’t know much about them, other than they build big planes and I ride in them.”
And she felt no more secure in her job than she did a day earlier. “There’s mostly nervousness here. I’ll stay in the job as long as it lasts.”
But a Rocketdyne engineer was upbeat about the Boeing deal. “Inside, everybody is feeling happy. And we do not anticipate layoffs. Most of what we do will supplement Boeing’s business.”
The engineer, who didn’t want his name used, is happy to see Rockwell’s corporate management exit. “Rockwell was concentrating on semiconductors and not putting so much emphasis on aerospace. Our business kept shrinking. We lost 60% of our jobs since I joined the company in 1989. There was a feeling of hopelessness. You’d sit and watch layoffs left and right. Going with Boeing is a morale booster.”
Another Rocketdyne engineer with 30 years at the company, dating back to the glory days of the 1960s when Rocketdyne joined the rush project to land a man on the moon, said: “It’s kind of a rebirth. This will be a combined company with a lot larger potential. It’s a great opportunity for us.”
The Rocketdyne division, a unit of Rockwell Aerospace, has been a major San Fernando Valley employer since it opened in 1955. Rocketdyne has played a big role in the nation’s space program since the early ‘60s when it built rockets for the first American-manned spacecraft during the Mercury program.
And for all of its recent layoffs, Rocketdyne remains a big business, with about $1 billion a year in sales.
Its two biggest contracts are building and maintaining the main engines for the current space shuttles--a project that dates back to 1972--and building the primary electric power system for a $30-billion international space station.
But last month, Rockwell and McDonnell Douglas lost out to Lockheed Martin, which was awarded the NASA contract to build the new space shuttle prototype. But Rocketdyne will still have a piece of the new space shuttle because it has a $270-million, three-year deal to build engines for the new Lockheed X-33 design.
One oddity about the proposed Boeing-Rockwell deal is that the two companies are now both rivals and partners, depending on which Department of Defense project they have involvement.
For instance, Boeing is the prime contractor for the space station, while Rockwell is one of three key subcontractors. For this project Rocketdyne is building an innovative electrical power system--with quick emergency shut-off systems--that relies on photo voltaic cells to absorb sunlight. This system will help provide the power that astronauts will need to perform the in-space assembly of the massive space station--which will be the length of two football fields--starting in late 1997.
Another odd twist is that Boeing and Rockwell are now hustling to beat out each other for an Air Force contract for a new airborne laser system that will be built into a Boeing 747 and used to knock out enemy missiles.
The Boeing proposal would use a TRW laser, while Rockwell’s proposal calls for a laser of its own design.
Boeing and Rockwell may be partners soon, but “we’ll still compete for it,” Rocketdyne’s Sewell said.
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Rocketdyne and The Valley
Boeing Co. announced Thursday a $3.2-billion deal to buy the bulk of Rockwell International’s aerospace and defense holdings. Rockwell’s Rocketdyne division, based in Canoga Park, has history which goes back to the early days of the space program. Despite downsizing in recent years, Rocketdyne still generates $1 billion in sales.
Opened: 1955
Employees: 4,200
Layoffs: Rocketdyne lost 4,800 employees between 1990 and now. In 1990, 9,000 employees worked at its facilities in Canoga Park and Santa Susana. The all-time high number of employees was 22,000 in 1960s.
Past projects
* Built the first rockets for the Mercury space program.
* Built Gemini, Apollo rocket boosters.
Current projects:
* Contracted to provide reusable rockets for proposed X-33 experimental spacecraft.
* Builds and services the space shuttles’ main engines.
* Builds engines for the Delta and Atlas launch rockets.
* Developing an electric power system for the proposed space station.
* Venturing outside aerospace, designing a device for helping turn steam into energy at a solar power plant near Barstow.
Future
* Too soon to say. Experts note, however, that Boeing does not have many businesses that overlap with Rocketdyne, suggesting Boeing would not want to make drastic cuts in the Canoga Park operation.
Sources: Staff reports.
Rocketdyne’s Field Lab
Boeing Co. announced Thursday a $3.2-billion deal to buy the bulk of Rockwell International’s aerospace and defense holdings. Rockwell’s Rocketdyne division has run the open-air Santa Susana Field Lab near Simi Valley, and continues to test engines designed at its plant in Canoga Park.
Opened: 1955
Employees: 4,200
Layoffs
* Rocketdyne lost 4,800 employees between 1990 and now. In 1990, 9,000 employees worked at Santa Susana and Canoga Park. The all-time high number of employees was 22,000 in the 1960s.
Past Projects
* Tested the first rockets for the Mercury space program
* Tested Gemini, Apollo rocket boosters
* Built and tested nuclear reactors for U.S. Dept. of Energy
Current Projects
* Testing engines for Delta and Atlas launch rockets
* Developing bid for Air Force contract to build the Airborne Laser defense system
* Designing earthquake dampers for Golden Gate Bridge
Future
* Business to continue with staff cuts through attrition, not layoffs. Experts question whether Boeing will assume the lab’s legal liabilty for cleaning up radiation and spilled chemicals.
Sources: Times staff
