Skip to comments.Sequestration (Vanity)
Posted on 08/17/2012 6:47:21 AM PDT by BO Stinkss
Date: August 10, 2012
To: All U.S. Employees
From: Jay L. Johnson Chairman and Chief Executive Officer
On January 2, 2013, funding for every federal program, including those in the U.S. Department of Defense, may be cut by an estimated 12 to 15% as part of a mechanism called sequestration. Sequestration was created by the U.S. Congress in the Budget Control Act of 2011 to force the government to address the federal deficit. If these cuts are put in place, it will affect every federal program our company supports and will likely impact all General Dynamics employees.
Budget cuts of this magnitude will have significant consequences to the security of our country, our men and women in uniform, and the defense industrial base. As Secretary of Defense Leon Panetta stated: "If Congress is irresponsible enough to suddenly turn on this sequester idea because they failed to meet their responsibility, that would clearly damage our national defense."
It is important to note that the sequestration mechanism is in addition to $487 billion in cuts to the defense budget over a 10 year period already mandated by Congress and the Administration. It is very clear to me that an additional budget reduction of $54.7 billion per year for 10 years, as required by the Budget Control Act, will have considerable impact on all government contractors and could result in substantial layoffs and furloughs at our company and thousands of others. Unfortunately, the specific effect of sequestration on General Dynamics' programs, facilities and employees is unclear because the government has not articulated a detailed plan for its implementation.
Sequestration can be prevented if Congress enacts legislation this year that provides alternative means to reduce the federal government's budget deficit. Our leadership team has been communicating with members of Congress, as well as the Secretary of Defense, to voice our concerns about the impact of sequestration on General Dynamics, our industry and our country. I have asked each business unit president to contact their suppliers, subcontractors and vendors to urge them to contact their elected officials. We are also reaching out to labor unions that represent General Dynamics' employees.
I am sending this message to every U.S. employee of General Dynamics and am asking you to contact your representative and senators in the Congress to urge them to work in a constructive, bipartisan fashion to find a more balanced approach to address the federal deficit and prevent sequestration from occurring. To find the contact information for the offices of your representative and senators, please visit the following websites and enter your zip code in the section at the top right-hand side of each site: http://www.house.gov and http://www.senate.gov.
My intention is not to alarm you or cause undue concern. I'm sure you will want to know if you will be affected. I wish I could give you more clarity about the impact sequestration could have, but until we receive guidance from the government, we can't estimate the potential impact on jobs or facilities.
I ask that you remain focused on supporting our customers and delivering the level of service for which we are known. Your leadership team will continue to work this critical issue on behalf of General Dynamics and everyone of our employees. We will keep you informed as events unfold.
Thank you for your commitment to our company, our customers and our nation.
Jay L. Johnson Chairman and Chief Executive Officer
So Buraq and company will spin this as
The Rising Tide of Racism in America (trademark).
We also received a similar memo about a month ago at Lockheed.
Glad the notices are going out. Obummer & thugs were trying to make the case that the notices didn’t need to go out unti (surprise!!) after the election.
You're right. They're trying to stop it.
I run the pricing department of a very large gov’t contractor in the DC area. Needless to say even if sequestration occurs, a reduction in G&A costs (i.e needless VPs and executives) many actual critical jobs could be saved.
I am glad these notices are going out. But trying to call Congress is pointless because the only real constituents impacted are those inside the beltway
It might hurt your company some in the short run, but continuing to run up the deficit will cause much more pain and devastation to all citizens (including the companies they own, invest in or work for.
Don’t your people charge G&A? I am also in pricing, contracts, and finance for a very small contractor and my labor goes against G&A. The VPs and such can hide much of their labor in unbillable direct charges. They will cut 3 of your employees before they cut the first VP, especially for a larger contractor.