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NOVEMBER 13, 1995
Contact: Media Relations (610) 774-5997

Reduced Workload Will Result in Elimination of PP&L Jobs

As the result of reduced workload throughout the company, Pennsylvania Power & Light Co. Monday (11/13) said that it is necessary to eliminate about 300 bargaining unit jobs throughout its service territory.

"The positions are being eliminated to match the number of full-time employees with the company's expected workload," said William F. Hecht, PP&L's chairman, president and chief executive officer. He said a meeting was held Monday with the leadership of the International Brotherhood of Electrical Workers Local 1600, the union representing PP&L employees.

The majority of the reductions result from a decrease in work associated with power plants and from elimination of staff functions. For that reason, Hecht said, there will be no effect on the company's ability to provide high-quality service to customers. The reductions also will have no impact on public and employee safety, Hecht said. "We are not eliminating positions in customer service functions like telephone answering, meter reading or storm repair," he said.

This reduction in the number of positions in the work force is directly related to completion of environmental projects to improve air quality, to reduced spending on new construction and power plant projects, and to other company initiatives to reduce operating and maintenance expenditures, Hecht said.

"These cost reductions are absolutely essential if PP&L is to continue to build value for shareowners and continue to provide high- quality service at low cost to customers. Unfortunately, these cost reductions lead to decreased workload, especially in our physical work force," said Hecht.

"While we have done everything reasonable over the past few years to avoid layoffs at PP&L, it is almost certain that the process we are undertaking this week ultimately will result in people leaving the company involuntarily," said Hecht. He added, however, that, due to the labor agreement placement process based on company seniority, it is unlikely that there will be any layoffs before the first quarter of 1996.

Hecht pointed out that the company has been talking with employees about the likelihood of these reductions for more than a year.

He noted that the company reduced its number of full-time employees by about 1,600 since 1985, through normal attrition, early retirement programs and voluntary severance offerings.

"After all the efforts we have made in the past decade to reduce the work force with a minimal impact on PP&L employees, this is a very difficult decision to make. But it is essential for the long-term health of the company and for us to continue to provide low-cost electricity for the people of Central Eastern Pennsylvania," said Hecht.

Hecht said the company has not established an employment level target, but workload changes as the result of restructuring, combined with financial and operational mandates, are likely to reduce the full-time work force to about 6,000 within the next few years. PP&L currently has 6,692 full-time employees.