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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 20, 1995
CONSOLIDATED NATURAL GAS COMPANY
________________________________________________________________________
(Exact name of registrant as specified in its charter)
Delaware 1-3196 13-0596475
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(State of incorporation) (Commission (IRS Employer
File Number) Identification No.)
CNG Tower, 625 Liberty Avenue, Pittsburgh, PA 15222-3199
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(Address of principal executive offices, including zip code)
Registrant's telephone number, including area code: (412) 227-1000
Not Applicable
________________________________________________________________________
(Former name or former address, if changed since last report.)
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ITEM 5. OTHER EVENTS
WORK FORCE REDUCTION PROGRAM
As described in the Company's Quarterly Report on Form 10-Q for the first
quarter of 1995, the Board of Directors approved a work force reduction
program in March 1995 as part of the Company's efforts to permanently reduce
costs in response to competitive conditions. The work force reduction program
includes a voluntary early retirement program, with eligibility based upon the
employee's age and years of service as of December 31, 1995, and an
involuntary separation program. The early retirement incentives include five
additional years of age and pension service for determining pension benefits.
The involuntary separation program involves severance benefit payments to
affected employees.
The early retirement program was offered at six of the Company's subsidiaries
from April 1 through May 31, 1995, with eligible employees retiring before
December 31, 1995. A total of 479 eligible employees elected to accept the
early retirement offer. Thus far in 1995, an additional 103 employees have
been separated from the Company in conjunction with the work force reduction
program. It is anticipated that additional employees may be separated later
in 1995. In connection with the program, Consolidated will record a charge to
earnings in the second quarter for retirement incentives and severance costs.
The total cost of the work force reduction program is expected to range from
$38 million to $45 million. Certain of the Company's regulated subsidiaries
will defer about $3 million of the costs and will seek recovery in future
rate-making proceedings. Savings attributable to reduced salary and benefit
costs will increase earnings in the last six months of 1995 and in future
periods.
Adoption of the early retirement program is still subject to union approval at
certain subsidiaries. If adopted, the program may result in additional
charges later in 1995 which are not expected to be significant.
In June 1995, the Board of Directors approved a separate work force reduction
program at a seventh subsidiary which includes voluntary early retirement
incentives similar to those offered at the other six subsidiaries. The early
retirement program will be offered to eligible employees in the third quarter
of 1995. A major portion of the costs of the work force reduction program at
this subsidiary is expected to be deferred pending recovery in future rates.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CONSOLIDATED NATURAL GAS COMPANY
________________________________
(Registrant)
By L. D. JOHNSON
______________________________
(L. D. Johnson)
Vice Chairman
June 20, 1995 and Chief Financial Officer
