Shuttle program's end means layoffs at Rocketdyne plants

As the vaunted space shuttle program nears its final flight this summer, its main rocket engine maker in the San Fernando Valley has begun issuing layoff notices to one out of seven workers.

Pratt & Whitney Rocketdyne announced this week it would hand out warnings to 300 of 2,700 workers nationwide.

Roughly half those layoffs will occur at two Rocketdyne plants in Canoga Park and Chatsworth, according to a spokeswoman, or 150 out of 1,100 workers

"The uncertain future of the space industry, current economic conditions and significant budget challenges facing the U.S. government have created an environment where we must take difficult steps to ensure our cost structure is competitive during these challenging times," said the Canoga Park-based company, in a statement.

"This action is part of the company's continuous effort to align its work force to meet customers' needs and to respond to the prevailing business conditions and outlook."

The job cuts come long after Rocketdyne officials had warned that layoffs would occur unless NASA unveiled a successor program to the shuttle, now approaching its 135th and last mission in July.

Ongoing cutbacks

The Rocketdyne layoff notices started Tuesday - the same day NASA announced its next U.S. spacecraft, or Multi-Purpose Crew Vehicle, to whisk the next generation of astronauts to Mars.

It also follows years of Rocketdyne downsizing at facilities on Canoga and

DeSoto avenues in Canoga Park and Chatsworth, respectively; Huntsville, Ala.; Kennedy Space Center and West Palm Beach, Fla.; and Stennis Space Center, Miss.

"I know a lot of guys that got hit - it's all shuttle," said one Rocketdyne employee in the Valley who asked not to be named. "Let's get the jobs back in California, and the U.S.

"Why buy engines from Russia when we've got 'em right here?"

The division of Connecticut-based Pratt & Whitney had already lopped off 15 percent of its work force over the past year through voluntary retirements, layoffs and attrition, in addition to furloughs, travel restrictions and other cost cutting.

Its projects include the main engines for the space shuttle, along with Atlas and Delta launch vehicles, missile defense systems and advanced hypersonic engines.

Earlier this spring, Rocketdyne's RS-68 hydrogen-fueled engine powered the launch of satellites and other payloads from Cape Canaveral and Vandenberg Air Force Base.

A dozen main shuttle engines sit in storage in Canoga Park awaiting orders for a potential unmanned vehicle, the employee said.

Last month, Rocketdyne President Jim Maser said NASA accounts for 60 percent of company business, down from 80 percent four years ago.

The loss of the space shuttle will further erode its revenues, he said, leaving aerospace industry suppliers uncertain.

"Our concern is that they're taking too long, and this perishable intellectual capital is being put at risk," Maser told Reuters during a National Space Symposium last month.

"For the first time in our history, our major launch system is ending and we don't even know what the replacement is."

Although Lockheed Martin is scheduled to build the new space vehicle based on its Orion space capsule, an engine-maker has not been chosen.

Rocketdyne, which once employed 3,000 Valley workers during the height of the space program, hopes to diversify into missile defense, energy and solar power technology.

Northrop Grumman Corp., which employs 21,000 workers in Los Angeles County, is also conducting layoffs, though it's not clear how many, a spokesman said.

Life after shuttles?

At the same time, Northrop Grumman Aerospace Systems has openings for 400 workers.

While Uncle Sam wrestles with deficits, defense and aerospace companies could be further hurt, economists say.

And while the demise of the space shuttle will affect jobs across the U.S., Los Angeles could be especially hard hit.

Last month, aerospace-related industries employed 35,700 workers across the county, down 1,000 workers from the same time last year.

"There is no near-term replacement for the shuttle," said Nancy Sidhu, chief economist for the Los Angeles County Economic Development Corp. "And it appears that NASA will close or mothball all project plant facilities. When the program closes, it's gone.

"The outlook is not cheerful on the defense side of the business. And space-budget issues could be more severe."

Source: http://www.dailynews.com/news/ci_18142683?source=rss

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