Skip to comments.Hawker Beechcraft layoffs total 300
Posted on 11/13/2011 2:37:04 PM PST by Evil Slayer
Hawker Beechcraft issued 60-day layoff notices Friday to 300 workers, the company said in a statement.
A source said the notices included 210 salaried and 90 hourly workers. The same source said there could be more layoffs sometime around February.
The company issued a statement saying that many of the employees were notified Friday of the cuts.
Hawker Beechcraft employs about 6,000 people, including about 4,700 in Wichita and 200 in Salina.
Some employees laid off were walked out the door Friday, although the company has said they would be paid for the next two months. The practice has been common in previous rounds of layoffs.
Hawker Beechcraft CEO Bill Boisture warned employees in a letter last week of the looming job reductions, which he said were necessary because the business jet market hasnt returned as soon as expected. The company must adjust to the new realities, he wrote.
The cuts mean that the city will have to work aggressively with several hundred families to meet their needs, Mayor Carl Brewer said after the layoffs were announced.
Were always disappointed any time we lose any type of jobs, he said. While the number of cuts isnt bad, any time jobs are lost is a concern, he said.
Sedgwick County Commission chairman Dave Unruh said hes disappointed about the layoffs in light of the trials facing the economy, but he respects the companys right to make the decision.
Its a tough deal, but theyve got to do what it takes to keep their boat afloat, Unruh said.
Hawker Beechcraft, in its statement Friday, said it can confirm that its Kansas employment level after the workforce reduction will stay well above what its partnership with the state of Kansas requires. The company said it notified city, county and state officials before Fridays announcement.
Last year, the state agreed to give the company $40 million in tax-exempt bonds to upgrade the companys products, reconfigure operations and train workers. The city of Wichita and Sedgwick County together added $5 million. The agreement came as the company was considering moving work to Louisiana.
In exchange for the bonds, Hawker Beechcraft agreed to keep its headquarters and most of its operations in Wichita at least until Dec. 31, 2020. It also agreed to employ at least 4,000 in the state. Penalties dont kick in, however, until employment drops below 3,600. Should that occur, payments would be reduced according to a formula based on the job numbers.
The city and state worked hard to keep Hawker in Wichita, Brewer said. City staff and attorneys will evaluate the employment numbers and check agreements in place, he said.
In my mind, theyre still above the 4,000 but we will aggressively check all agreements still in place, Brewer said.
Hawker Beechcraft has been reducing its Wichita footprint as it works to close Plants I and II and move work to outside suppliers and to its facility in Chihuahua, Mexico, in an effort to cut costs. The company has said its cutting about 800 jobs related to that effort. Fridays cuts appear unrelated to that plan.
On Oct. 31, Hawker Beechcraft issued 60-day layoff warnings to 100 Wichita workers and one Salina employee, according to the Kansas Department of Labor. Including the notices issued Friday, the company has issued 759 layoff notices this year.
Gee... this couldn’t possibly have anything to do with Dumb0 constantly opening his yap about “corporate jet owners” and how wicked they are? Nah, nothing to see here (my cousin invested in new corporate jet development and between the economy and Dumb0 the Resident the sector is flat-lining).
You hit the nail on the head with that one.
We have a Beechcraft - great plane.
Great American companies are being trashed by Obama - deliberately I think.
Prayers for your son.
I received a text message, Friday afternoon, my very dear friend was axed and led out the door. I have been reading the comments in the Wichita Eagle, http://blogs.kansas.com/aviation/2011/11/11/city-officials-hawker-beechcraft-layoffs-could-be-in-the-hundreds/. I was shocked to read about the quality control issues of parts being made in Mexico for aircraft. Also, what is the deal with awarding “Trophies” instead of pay raises or a bonus?
I hope that your son is relocated.
That may be, but ultimately it’s the cost of labor that’s killing the US aircraft industry...which is why HBC is moving to Mexico.
Thanks for your concerns. He told us that they might be able to relocate him to their military contract department. But, of course they are taking a hit too. All we can do is hope and pray.
Oh great - airplanes built by Mexicans? That will inspire confidence.
Some things shouldn’t go to the lowest bidder.
In the meantime Boeing and foreign manufacturers like Embraer are moving into “right to work” states and creating new jobs.
That’s the first thing that I thought of also. Just like when the feeble nitwit slammed conventions in Las Vegas and bookings went down. Yet those imbeciles re-elected Harry Reed anyway.
With me, there is at least one more w/no kids for a long list of reasons.
I am one of those, too. I certainly did not see the waves of economic woes that we are seemingly stuck with now, but I am personally glad that my wife and I did not have children to have to contend with these worries today.
Just curious, though. Why would you expect to catch flak for your situation?
I work in the avionics industry, so I see the slowing aviation industry. The problem with aviation is simply government. Get those bastards out of Washington and things will perk up quickly. There is money out there but it is afraid of being spent. For instance, we know that 30% of pilots within 5 years will retire but due to federal meddling in student loans, and other issues, even students are becoming rare.
I own a Beechcraft Bonanza and love it.
That’s what we have - a turbo. Such excellent planes!
I keep thinking that if the SHTF here that plane can get us to Panama. But probably Canada would be a better choice not counting the weather.
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Remember the "luxury tax" back in the late 80's and early 90's? It was a 10% charge assessed on new boats costing more than $100,000 and airplanes over $250,000. I believe it was also assessed on new cars over a certain threshold, but I don't think any American cars exceeded it.
The luxury tax was finally repealed during the (first) Bush administration, but not before it put most of the custom boat builders in the US out of business. It literally destroyed that industry, which was mostly small businesses and family-run operations. It also put 1000's of craftsmen out of work.
Airplane builders had other problems: liability insurance was making it impossible for them to build small planes (under the $250,000 threshold). That was finally addressed in 1994 with a statue of repose that barred most liability claims after 18 years from date of manufacture.