Skip to comments.Obama Administration to Defense Contractors: No Layoff Notices Until After Election, Please
Posted on 09/29/2012 4:07:17 PM PDT by Kaslin
In an effort to make the economy look a little rosier than it is, the Obama administration is basically coercing defense contractors so as to prevent news of layoffs hitting voters before the election. With sequestration about to result in some major cuts to the defense budget, contractors will lose government business -- and that means, employees will lose jobs. But to prevent poor numbers ahead of the November election, the Obama administration has made it very, well, fiscally unwise for companies to issue layoff notices too early.
The Labor Department issued guidance in July saying it would be “inappropriate” for contractors to issue notices of potential layoffs tied to sequestration cuts. But a few contractors, most notably Lockheed Martin, said they still were considering whether to issue the notices — which would be sent out just days before the November election.
But the Friday guidance from the Office of Management and Budget raised the stakes in the dispute, telling contractors that they would be compensated for legal costs if layoffs occur due to contract cancellations under sequestration — but only if the contractors follow the Labor guidance.
The guidance said that if plant closings or mass layoffs occur under sequestration, then “employee compensation costs for [Worker Adjustment and Retraining Notification] WARN act liability as determined by a court” would be paid for covered by the contracting federal agency.
Senate Republicans, who accused the White House of trying to hide job losses after the first guidance, said Friday that the new OMB statement “puts politics ahead of American workers.”
“The Obama Administration is cynically trying to skirt the WARN Act to keep the American people in the dark about this looming national security and fiscal crisis,” Sens. John McCain (R-Ariz.), Lindsey Graham (R-S.C.) and Kelly Ayotte (R-N.H.) said in a statement. “The president should insist that companies act in accordance with the clearly stated law and move forward with the layoff notices.”
The fight over WARN Act notices began in June when Lockheed Martin CEO Bob Stevens said his company might send the notices to all 123,000 of its employees.
Some companies were hesitant to follow Lockheed, but several others told McCain in letters earlier this month they might send the notices, too, despite the Labor Department guidance.
Basically, the government has tried to circumvent some inevitable bad news in an attempt to give the economy an artificial cushion. It's worth noting the Obama administration's duplicity, as well as the terrible effects of its policies.
.. or how about
Obama Administration tells Obama activists: Don't worry.
If you are caught tampering with Election 2012 your legal costs would be paid . . . by a federal agency..
He’s been screwing contractors and especially small business contractors since he was elected. I hope every single company sends out their notices with a thank you card they can send BO.
Yeah Soebarkah, your layoff notice is coming November 6th...
They're getting a "permission slip" to break the law. Nothing new for the past 3 1/2 years.
What a scumbag. He has no desire to save their jobs, just his own.
EVERYTHING is about winning this election.
I know Bob Stevens.... he is not one to disobey or skirt the law. If he said layoff notices will go out because of the WARN law then they will.... washington wont be able to stop him... no matter how they try. Mr. Stevens is a “by the book” kind of guy.
Don’t see how any person of character or conscience could vote for these criminals. The rat party has basically sunk to Mafia level - nice country you have there, too bad if anything happens to it.
Legal fees. Payoff to lawyers......
Note to Defense Contractors.
Mister Obama will (I strongly suspect) do everything he can to put you out of business, whether-or-not you delay layoff notices.
Do it now, and help your peeps look for scarce jobs earlier rather than later (when even fewer would be available.)
Only retards can’t see there’ll be layoffs if there are huge defense budget cuts. Oh, wait! Democrats ARE retards. Never mind.
They're few and far between. Hope your right.
How can this "not" be impeachable. Oh yea, Drunk Boehner.
I have not seen Romney come out with this. Hopefully, I simply missed it. Wouldn’t ya think this would be useful to show America that BO does not support American workers, unless it is for political gain. Why aren’t future unemployment numbers estimated with this? First he bought out Detroit, then Wall Street. There is the Doc fix, student loan fix and now the lawyer fix. Where is the everyday American fix? I suppose we get what we paid for when we nominated Romney, the grandfather of socialism. I hope these papers surface during the first debate. I hope every DOD contract worker is informed, but I find it unlikely. I hope I am wrong about the entire thing.
So much for your "by the book" guy.