Skip to comments.Lockheed holds off on sending layoff notices before elections
Posted on 10/03/2012 7:55:11 AM PDT by SeekAndFind
MARIETTA Lockheed Martin, which has about 8,000 employees in Marietta, announced Monday that it would not send out notices of possible layoffs to its employees right before Election Day.
The move follows advisories from the Department of Defense and the federal Office of Management and Budget indicating that DOD anticipates no contract actions on or about 2 January, 2013, and that any action to adjust funding levels on contracts as a result of sequestration would likely not occur for several months after 2 Jan, a Lockheed spokeswoman in Bethesda, Md., said.
The Budget Control Act of 2011 created a supercommittee to cut the federal deficit, but also contained a poison pill sequestration instituting across-the-board cuts of at least 9 percent if the supercommittee failed to make cuts.
Lockheed and other defense contractors warned this summer that layoff notices could be sent days before the election. In response, President Barack Obamas administration on Friday said the government would cover severance costs if contracts are indeed canceled, resulting in layoffs.
According to The Hill publication, contractors that send out job-loss warnings before sequestration begins would not be eligible for such monies.
Republican Sen. Johnny Isakson, who lives in east Cobb, agreed the layoff warning notices are being made a political football.
This is my opinion: The president would like for sequestration to happen. It would force $1.2 trillion in cuts without any accountability, and it puts blame on Congress, Isakson said. But it would be devastating for our military and our countrys defense.
Lockheed Martin has already been hit with the ending of the F-22. That, of course, cost jobs in Marietta, Cobb County and north Georgia. The impact of sequestration on forward orders for the C-130 and other aircraft would cause further layoffs, Isakson said. My personal opinion is that after the election, Congress will forestall it going into effect and make cuts individually on a cost-benefit basis. But prior to that, the uncertainty does have political consequences, and I think thats why the president is doing what hes doing.
Denise Rakestraw, president of machinists union local 709 in Marietta, said she believes the companys decision not to send out the WARN notices was based on discussions with the Department of Labor.
I dont know for sure whether it is politically motivated or not, but it sure seems that way, said Rakestraw, whose local represents about 3,500 workers at Lockheeds plant in Marietta. The notice is designed for employees to be able to make plans to make a living. If the notice comes with no clear indication as to whether there is going to be layoffs, then the intent of it is lost.
Lockheed spokeswoman Jen Allen said her company and its leaders still believe the sequestration cuts are ineffective and inefficient public policy that will weaken our civil government operations, damage our national security, and adversely impact our industry.
Lockheed Martins stock closed at 93.16 Tuesday, down 28 cents, on the New York Stock Exchange.
THE ABC NEWS HEADLINE IS MORE DESCRIPTIVE OF *WHY* LOCKHEED IS HOLDING OFF LAYOFF ANNOUNCEMENTS (EVEN AS THE LAW REQUIRES 60 DAYS NOTICE ).
At White House Request, Lockheed Martin Drops Plan to Issue Layoff Notices
So the whole nation knows that a major corp and the gov are colluding in an illegal act. Amazing!
This whole thing is hilarious. First of all, contractors know they are in deep trouble no matter what so they expect the shoe to drop. They are NOT dumb enough to see what is happening. I think the White House is dealing with this very poorly. If they wanted to keep the letters from going out, why scream it for everyone to hear?
ODrama needs a big event to save his sorry @ss.
hang on America!
The media would treat this as a major scandal if the President were a Republican and there would be howls for impeachment. However with Obama in the White House and the media in the tank for the Democrats I am shocked to even see this reported by a major news network.
Lockheed employees should immediately sue the company and the Administration for failure to follow the “WARN” law.
Not only that, but we taxpayers get to pay for any and all legal ramifications resultant from this illegal act.
Obamas administration still hiding the facts of his failures,replacement to ensue.
>>Lockheed employees should immediately sue the company and the Administration for failure to follow the WARN law.
I don’t think they’d have standing until Lockheed announces the layoffs without the 60-day notice.
I cannot believe that a company as successful as Lockheed Martin would deliberately flaunt the 60 day notice requirements of the FEDERAL law & put themselves into a years-long series of lawsuits by employees.
This could actually bankrupt the company & shareholders would be rightously outraged.
Some one with some common sense at Lockheed has to step in & protect the shareholders from such a series of un-ending lawsuits.
I would think that shareholders can also sue Lockheed Martin executives for Malfeasance in doing their jobs.
Like the employees aren’t already worried and this is not the talk of the community/wives/union halls.