Solar Turbines to Lay Off 500 to Aid Parent Caterpillar Tractor

SAN DIEGO —  Solar Turbines Inc. plans to lay off as many as 500 of its 3,500 workers in the next year as part of a restructuring designed to aid its troubled parent, Caterpillar Tractor Co.

All of the affected workers are “salaried employees” and are primarily from the ranks of management in the San Diego area, according to Solar spokesman Ken Stahl.

None of the 1,300 workers represented by the International Assn. of Machinists will be affected, according to Local 685 President Edward Maudlin.

Employees of the gas-turbine manufacturer were first told of the planned layoffs Tuesday, when 1,500 workers gathered at the Al Bahr Temple in Kearny Mesa.

“It’s a streamlining of operations to make us more responsive to the market,” Stahl said.

Caterpillar, based in Peoria, Ill., said last month that it plans to lay off 1,360 workers this year, following the furlough of 2,450 workers last October.

The world’s largest maker of heavy construction equipment, Caterpillar last week reported a $428-million loss for 1984, its third consecutive annual loss and the largest in its history.

In 1983, the company posted a loss of $325 million. Caterpillar’s revenue dropped to $4.9 billion last year from $5.4 billion in 1983.

The financial results of the Solar unit are not publicly disclosed.

Stahl said Solar is not planning any changes in its line of gas turbines as part of the restructuring.