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Thread: Shhh ... don't tell them they could get laid off

  1. #1
    Senior Member Gerry Clinchy's Avatar
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    Default Shhh ... don't tell them they could get laid off

    The administration has asked defense contractors not to send layoff notices ... if the defense budget gets cut by sequestration, it will cause a large layoff among defense contractors. Law stipulates that they have to give 60 days' notice of possible layoffs; and in CA a state law requires 90 days' notice.

    This is greatly inconvenient for the administration since those notices would be going out before the election. So, the administration is asking those companies to break a Federal law, so that the notices won't upset any voters.

    So,
    The Obama administration has doubled down on its plea to defense contractors not to warn employees about possible layoffs due to looming budget cuts -- going so far as to offer to cover legal fees in compensation challenges.


    The move drew a stern rebuke Friday from South Dakota Republican Sen. John Thune.

    "For the second time, the Obama administration has now encouraged government contractors to ignore the WARN Act and hold off on warning employees about possible layoffs due to the looming sequestration cuts, Thune, lead author of the Sequestration Transparency Act, said Friday.

    The offer to pay the legal fees was included in a memorandum issued by the administration Friday that also restated the Labor Department's position from July that contractors should not issue written notices to employees because of the "uncertainty" over the across-the-board cuts to the defense budget and other federal spending that will occur Jan. 2 unless Congress reaches a new deal.

    The notices are required under the Worker Adjustment and Retraining Notification Act and generally require employers with more than 100 employees to provide 60-day notices of "mass layoffs if they are reasonably foreseeable."

    The projected $500 billion in Pentagon cuts under the so-called sequestration will occur because Congress failed to agree on a deficit-reduction plan this summer.

    The guidance issued by the Labor Department this summer stated "it is neither necessary nor appropriate" for federal contractors to issue the warnings.

    The memorandum states the federal government would cover employee compensation under the WARN Act "irrespective of the outcome" as long as the contractor follows the Labor Department guidelines.
    Still, defense contractor Lockheed Martin -- which might have to lay off employees should the cuts kick in -- is still considering whether to send out the notices, according to The Hill newspaper.

    Rep. John Kline, chairman of the House Committee on Education and the Workforce, suggested last week that the Labor Department is trying to conceal the full impact of the cuts.

    "The Labor Department is trying to hide the consequences of sequestration from workers," Kline, R-Minn., said in a letter to Labor Secretary Hilda Solis.

    The letter was the second in two months by Republican committee leaders in which they asked for an update and more detailed information about the obligations federal contractors have in giving the advanced notice.

    On Friday, Republican Sens. John McCain, Ariz.; Lindsey Graham, S.C.; and Kelly Ayotte, N.H., issued a similar statement, saying in part, "The president should insist that companies act in accordance with the clearly stated law and move forward with the layoff notices."

    The Associated Press contributed to this report.


    Read more: http://www.foxnews.com/politics/2012...#ixzz27uCmmLap
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    Senior Member gmhr1's Avatar
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    This is our 'Honest President" more lies more cover up . Just what we need 4 more years of a sneaky guy!
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    Quote Originally Posted by Gerry Clinchy View Post
    The administration has asked defense contractors not to send layoff notices ... if the defense budget gets cut by sequestration, it will cause a large layoff among defense contractors. Law stipulates that they have to give 60 days' notice of possible layoffs; and in CA a state law requires 90 days' notice.

    This is greatly inconvenient for the administration since those notices would be going out before the election. So, the administration is asking those companies to break a Federal law, so that the notices won't upset any voters.

    So,
    I call B.S.

    I work in the defense industry, and this is not how layoffs are administered. The companies will wait until the LAST POSSIBLE MOMENT to issue layoff notices because of the unique skills these workers possess. History has shown them that once out the door, less than 50% will return if they are sent a notice to re-hire folowing a layoff. The amount of time and training resources required to make new hires productive is very steep and hurts tHe companies' ability to compete with other defense contracters for future contracts.

    Further, the contracts we work to are typically awarded YEARS before actual production occurs, so cutting future contracts doesn't mean that you automatically begin a workforce reduction; you still must continue to perform the work outstanding on your backlog on schedule.-Paul
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    Senior Member gmhr1's Avatar
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    They have been reporting this on the news, they have to issue the pink slips 60 days in advance and Obama doesnt want them going out right before the election. This all all due to the sequestration cuts.
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    Quote Originally Posted by paul young View Post
    I call B.S.

    I work in the defense industry, and this is not how layoffs are administered. The companies will wait until the LAST POSSIBLE MOMENT to issue layoff notices because of the unique skills these workers possess. History has shown them that once out the door, less than 50% will return if they are sent a notice to re-hire folowing a layoff. The amount of time and training resources required to make new hires productive is very steep and hurts tHe companies' ability to compete with other defense contracters for future contracts.

    Further, the contracts we work to are typically awarded YEARS before actual production occurs, so cutting future contracts doesn't mean that you automatically begin a workforce reduction; you still must continue to perform the work outstanding on your backlog on schedule.-Paul
    My only experience was when Boeing lost the SST - they went from 105,000 to 35,000 - 2 weeks was all that was required then - The billboard "Will the last person to leave the city please turn out the lights" was significant & the economy was at a low around here!!!!!!
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    Quote Originally Posted by gmhr1 View Post
    They have been reporting this on the news, they have to issue the pink slips 60 days in advance and Obama doesnt want them going out right before the election. This all all due to the sequestration cuts.

    Believe what you want. I told you how it works.

    FIRST- the defense department would need to actually announce the cuts, which are not a done deal at this time.

    SECOND- the individual companies involved have to decide to have a layoff. Since NO ONE knows which programs might be cut, they are waiting to hear if THEIR particular piece of the defense spending pie is on the list BEFORE they announce a lay off.

    THIRD- the companies involved still must perform to schedule on their current contracts, so they may not be able to lay off workers immediately.

    Your hatred for ALL things Obama clouds your judgement. You can't even see that the failure to come up with a deficit reduction plan lies with the House and Senate. It was their inaction that put all this in motion. Remember that at the polls in November, if you are truly concerned about this matter.-Paul
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    Paul, I don't believe you are correct. Look for info on the Worker Adjustment and Retraining Notification (WARN) Act of 1988. Here's a very brief summary..

    >>The Worker Adjustment and Retraining Notification Act of 1988 (WARN Act) is a United States labor law which protects employees, their families, and communities by requiring most employers with 100 or more employees to provide sixty- (60) calendar-day advance notification of plant closings and mass layoffs of employees. In 2001, there were about 2,000 mass layoffs and plant closures which were subject to WARN advance notice requirements and which affected about 660,000 employees.[1] (Wikipedia)
    Eric

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    Senior Member Gerry Clinchy's Avatar
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    I see where Paul's coming from ... based on the WARN Act, the companies would not actually know if they would have to lay off or not until it becomes clear which of them will be affected.

    However, then why is the administration so anxious about telling them not to send the notices, and being willing to pay for legal counsel if the law might be violated? Has the administration also misread the law? Otherwise, would they simply not be advising the companies that the law does not require them to give the notice until the details of curtailed programs are known? Wouldn't that be the more level-headed approach?
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    Gerry-

    The claims that the 60 day notice of the WARN Act would come into play are based on sequestration taking effect. The first step of Paul's process would take effect because of sequestration which will kick in on Jan 2 and create massive cuts to DoD spending. If the dollars just aren't there....
    Eric

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