GTE Pledges More Work for Minorities and Women

The president of GTE California testified at a Public Utilities Commission hearing Tuesday that he is “not satisfied” with certain aspects of his company’s progress toward giving more contracts to firms owned by minorities and women.

But the GTE executive, David Anderson, said he is convinced that “further substantial progress” will be made in 1988 and that by the end of 1990, at least 10% of the value of all his company’s contracts will be with either minority- or female-owned firms.

Anderson’s testimony came at a hearing on a recommendation by civil rights organizations that the PUC force six major utilities to promote more minority and women employees and give minority- and female-owned companies more business.

Few Contracts With Blacks

If GTE succeeds in attaining its 10% goal in 1990, it will have nearly doubled the amount of business it sent to firms owned by minorities and women in 1986. That year, 5.4%, or $44 million, of GTE’s $828 million in total contracts went to such firms, including 3.5%, or $29.3 million, to firms owned by white women and 1.9%, or $14.7 million, to those owned by blacks, Latinos, Asians and Filipinos.

The 1986 totals, however, included only $900,000 in contracts to black-owned firms, and this was one of the areas where Anderson said he had told his colleagues he was “not embarrassed but not satisfied either.”

He said the company, formerly known as General Telephone & Electronics, has set a goal for increasing contract values with black-owned firms fivefold by the end of 1989.

Anderson testified for an hour at the hearing Tuesday, answering questions put to him by attorney Robert Gnaizda of Public Advocates Inc.

Firm Given Low Marks

Gnaizda represents the civil rights groups that have urged the PUC to order the salaries of top executives at six major utilities in California frozen and a halt in their rate increases until they promote more women and minorities and give minority companies more business.

Gnaizda characterized GTE’s record in both areas as the worst of the six utilities, which include Southern California Gas Co., Southern California Edison Co., Pacific Gas & Electric Co., San Diego Gas & Electric Co. and Pacific Bell.

Anderson said such comparisons are unfair. He said GTE has set ambitious goals for improvement and is working at them.

Gnaizda said that if GTE is able to meet the goals expressed Tuesday by Anderson, its record would be “commendable.”

Anderson and Gnaizda clashed repeatedly during the testimony over how GTE has been doing in promoting minorities and women into its most highly paid positions.

Different Statistics

Gnaizda, citing GTE salary statistics submitted in October to a state legislative committee, said that only six of the 103 highest-paid GTE employees were either women or minorities. He said four were minorities and two were white women.

Anderson insisted that as of November, 12 of the 66 highest paid were either women or minorities. He said these included six white women and six members of minority groups.

After the hearing, both sides indicated that GTE was counting bonuses and moving expenses in compiling its highest-paid statistics, while Gnaizda was not. In addition, the company had taken a number of people off the rolls through early retirements.