Nynex to take quarter charge of $550 million; firm to fire 3,400 managers, or 10.7% over 2 years, revamp overseas units

Article Abstract:

Nynex Corp will report a loss in 4th qtr 1991 consequent to a $550 million after-tax charge to cover costs of dismissing 3,400 managers and of restructurings. The managers will leave during the next 24 months. Nynex has also asked 6,500 craft employees to leave, taking an early retirement, by the end of 1991. Standard and Poor's Corp says Nynex's plans will strengthen the company, making Nynex more competitive. S and P has upgraded credit ratings for Nynex and for Nynex's subsidiaries, New York Telephone Co, New England Telephone & Telegraph Co, Nynex Credit Co and Nynex Capital Funding Co, from 'negative' to 'stable.' Nynex Chmn William C. Ferguson is optimistic, saying the personnel cuts and restructurings will make Nynex more competitive and allow Nynex to focus on the promising area of information networks and services.

Prepackaged software, Finance, Regional Bell Operating Companies, Personnel Management, Reorganization, Losses, Credit Rating, Bell Regional Holding Companies, Fourth Quarter

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Nynex, unions come to terms on 3-year pact

Article Abstract:

Nynex Corp, the parent company of New England Telephone Co and New York Telephone Co, signs a contract that gives its Communications Workers of America and International Brotherhood of Electrical Workers union employees a wage increase of 13 percent over three years. The pact, which also gives workers better control over work rules, is signed 11 months before the expiration of the current contract. Contract negotiations were peaceful, in contrast to a violent 1989 four-month strike and analysts contend that it sends a message to other unions that cooperation and not confrontation is the preferred method toward negotiation. In a separate announcement, Nynex says it plans to eliminate 5 percent of its management force by March 1992, which translates into 1,500 to 1,900 managers losing their jobs.

Contracts, Wages and salaries, Salary, Cooperative Agreements, Unions

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Nynex chief defends firm's 1988 probe of junkets by employees, suppliers

Article Abstract:

Nynex Corp's chairman William C. Ferguson said his company moved quickly in 1988 to investigate improper activities by Nynex purchasing employees and disclosed its finding fully to state regulators. Ferguson did not dispute the findings that a series of gatherings at Florida resorts between 1984 and 1988 had women for hire to provide entertainment and sex for attendees. Ferguson said that the employees took the trips on their own time but conceded that there was some evidence that suppliers may have paid for some of the hotel rooms. Nynex is trying to win approval of a $1.4 billion rate increase.

Investigations, Personnel Problems, Employee Relations, Investigation, Ferguson, William C.

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