Issue # 9 / 2005
Northrup Grumman,
"Defining the Future" for Global "Merchants of Death"
by Ed Slavin
Part 1 of a series
The Big business watchdog publication "Corporate
Crime Reporter" rated Northrop Grumman (NG) one of
the top corporate criminals of the 1990s. While local
North Florida politicians claim they are tough on crime,
don't expect them to come and arrest NG or jail its managers
or officers. The result of over one dozen major
mergers, NG is St. Johns County's largest private sector
employer, with a payroll that is more than 1/100 of the
county's adult population.
NG major environmental polluter and
government contract fraud artist
At a 2003 press event, NG managers praised the St.
Augustine "factory of the future," which is capable of
manufacturing all products needed by its "military
customers." NG makes deadly products, empowers spies,
helps elect politicians and now even helps them with
technologies to count your votes. NG is the world's second-
largest arms merchant, ahead of Boeing and behind
Lockheed Martin (all three are products of mergers).
NG's St. Augustine plant has 1250 non-union
employees working on naval electronic warfare systems,
including Prowler Attack airplanes and advanced E-2D
Hawkeye airplanes (used to target weapons and gather
intelligence, which will protect the U.S. Navy from any
cruise missiles launched in its direction). Both airplanes
are flown from aircraft carriers.
Intense Interest in Voting Technology
In 2002, NG bought an electronics firm involved in
election voting technology and also announced that it
had bought a license from "iPaper" for election systems
worldwide.. President Bush reportedly signed the Help
America Vote Act (HAVA) at the behest of Northrop
Grumman and Lockheed Martin, both global arms merchants
with an intense interest in voting technology.
Mark Lewelllen-Biddle wrote for "In These Times"
about how "troubling" it is that arms merchants are
"mucking about in the American electoral system."
What else is NG "mucking about in?" NG and predecessor
firms have a history of fraud, bribery, illegal campaign
contributions, union busting and revolving door relationships.
Northrop Grumman Goes to War:
Profitable Global Business
After 9/11, weapons contractors cashed in with new
government contracts. Money was no object. In July
2004, NG reported 44% higher profits, which it states
was the result of lower taxes and higher profit margins
from selling weapons, electronics and information technologies,
mainly to governments -- including the U.S.
Departments of Defense, Homeland Security, Justice and
Labor, and even the U.S. Postal Service (which it assists
with anthrax detection). NG's wealth and power are
fueled by campaign cash and government spending.
If past is prologue, NG's Orwellian motto, "Defining
the Future,"has an ominous ring to it. War remains a
very profitable business, with the government encouraging
arms merchants to gobble up their competitors, making
them more powerful than ever. In 1994, Northrop
acquired Grumman. Northrop Grumman has since
devoured some 14 former competitors, forming a
unique firm, combining both electronics and metal-bending
for shipbuilding and airplane manufacture.
NG busily produces products that kill, with 125,000
employees in 50 states and 20 countries, selling its wares
worldwide. Northrop Grumman is not quite a household
name like Wal-Mart or General Electric, but
Americans pay it billions annually. While it also sells
TRW credit reports and makes Sperry navigational systems
used on ships, almost all of NG's other products are
war-related or sold to governments.
"If you need a nuclear submarine, you've only got two
[companies] left to buy it from," according to Steven
Schooner, a George Washington University associate
professor and former official in the Office of Federal
Procurement Policy. As Project on Government
Oversight (POGO) staffer Christopher H. Schmitt wrote
in 2002, corporate mergers mean that governments are
less likely to use "suspension and debarment" to punish
wrongdoers by denying their contracts. ...
(To be continued in issue #10 of The Collective Press.)