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Sequestration (Vanity)
08/17/2012 | BO Stinkss

Posted on 08/17/2012 6:47:21 AM PDT by BO Stinkss

Memorandum

Date: August 10, 2012

To: All U.S. Employees

From: Jay L. Johnson Chairman and Chief Executive Officer

Re: Sequestration

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


TOPICS: Government; Miscellaneous
KEYWORDS: sequestration; vanity
Received this memorandum from the CEO of my company this morning. The Worker Adjustment and Retraining Notification Act (WARN) requires employers with 100 or more employees to provide notification (at minimum) 60 calendar days in advance of plant closings and mass layoffs. Sequestration will take effect Jan. 2 so the WARN notices have to go out no later than Nov. 2. That's just 4 days prior to the election. Obama is gonna $hit a brick when he sees these type notices going out.
1 posted on 08/17/2012 6:47:27 AM PDT by BO Stinkss
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To: BO Stinkss
It is good that your company leadership is telling the rank and file about the possible effects of sequestration and doing so well in advance of any needed cuts. It is also worthy of note that a boatload of layoff notices may go out just before election time.

So Buraq and company will spin this as

The Rising Tide of Racism in America (trademark).

2 posted on 08/17/2012 6:56:21 AM PDT by 17th Miss Regt
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To: BO Stinkss

We also received a similar memo about a month ago at Lockheed.


3 posted on 08/17/2012 6:56:35 AM PDT by Elderberry
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To: BO Stinkss

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.


4 posted on 08/17/2012 6:59:56 AM PDT by MissMagnolia (Being powerful is like being a lady. If you have to tell people you are, you aren't. (M.Thatcher))
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To: BO Stinkss
Obama is gonna $hit a brick when he sees these type notices going out.

You're right. They're trying to stop it.

Labor Dept. Tells Firms Facing Cuts Not to Send Layoff Notes

5 posted on 08/17/2012 7:33:08 AM PDT by Timber Rattler (Just say NO! to RINOS and the GOP-E)
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To: BO Stinkss

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


6 posted on 08/17/2012 7:37:53 AM PDT by MadIsh32 (In order to be pro-market, sometimes you must be anti-big business)
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To: BO Stinkss
I'm sure it was tempting to reply to your CEO that, since Congress was refusing to do its job to reduce the deficit, you were glad that this process was put into place.

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.

7 posted on 08/17/2012 8:00:30 AM PDT by MEGoody (Ye shall know the truth, and the truth shall make you free.)
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To: MadIsh32

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.


8 posted on 08/17/2012 8:07:19 AM PDT by wolfman23601
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