October 1, 2012

Obama bribery gets results: Lockheed Martin delays layoff notices [Darleen Click]

As I posted here, and to paraphrase cranky-d, the plan of the Obama administration to pay the fines of defense contractors who violate government regs concerning layoff notices, is now paying off.

Defense contractor Lockheed Martin heeded a request from the White House today – one with political overtones – and announced it will not issue layoff notices to thousands of employees just days before the November presidential election.

Lockheed, one of the biggest employers in the key battleground state of Virginia, previously warned it would have to issue notices to employees, required by law, due to looming defense cuts set to begin to take effect after Jan. 2 because of the failure of the Joint Select Committee on Deficit Reduction – the so-called Super-committee, which was created.

h/t Instapundit

Posted by Darleen @ 9:44pm
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Comments (13)

  1. This looks like a bridge too far to me…

    http://www.whitehouse.gov/the-press-office/2012/09/28/presidential-memorandum-presidential-determination-respect-child-soldier

    With enough exposure, this is so vile it has to lose Obama a lot of black votes. Its unspinnable, its illegal.

  2. If there is some version if this story that I am privy to and can share, I will.

    From a purely selfish point of view, the lack of layoff notices doesn’t look so bad.

  3. With Obama willing to support child slavery as official US foreign policy, layoff notices seem to pale in comparison.

  4. Glenn Beck needs to see that. Rush Limbaugh needs to see that. Roger Ailes needs to see that.

  5. Slart,

    But it’s not that the layoff notices aren’t there, it just that they are not going to be given to you until Obama is securely back in the White House.

  6. If the layoffs weren’t still looming, there would be no need for the taxpayer to pick up the legal tab for WARN Act violations.

  7. But it’s not that the layoff notices aren’t there, it just that they are not going to be given to you until Obama is securely back in the White House.

    No, I think it’s more like this: it’s that the layoff notices aren’t there, and won’t be there until some kind of notice of termination is obtained.

    I think Lockheed management is genuinely in the dark about which programs will be involved, and to what extent. And as long as the administration/Congress keep them in the dark, they can’t do much about that.

    I know this is an issue that looks like it should have traction, but I don’t think it does. At least, not at present.

  8. This notion that layoff notices somehow generate themselves spontaneously, and that Lockheed Martin is actively restraining them in exchange for…something; just what exactly that something is, I have no idea…just has no basis in reality.

    Does the corporation have lists of people that it would lay off first? Of course they do. They always do. Do they have a strawman list of people who might have to go should sequestration kick in? I have little doubt. Is LM somehow holding back on issuing layoff notices to a predetermined group of people because of some tit for tat (or tit in exchange for no-tat) arrangement with the Obama administration? That remains to be shown.

  9. LM and Boeing used to regular cyclical layoffs when I was a kid. It was almost like it was a seasonal thing. They’d be off-line for about six-eight weeks and then pick back up.

    Brown used to do the same thing with contractors when the nuclear power plants were being constructed in California.

    Of course, all of the people who received layoff notices at those three places were bottom-feeders on the assembly lines or doing coolie work at the towers.

    It never hurts to trim management unless you’re running a skeleton crew.

  10. This might be interesting. Or not. Either way:

    DATE: October 1, 2012
    TO: All Lockheed Martin Employees
    FROM: Bob Stevens, Chairman and Chief Executive Officer
    Chris Kubasik, Vice Chairman, President and Chief Operating Officer

    SUBJECT: An Update on Sequestration-Related WARN Notices
    For the better part of this year, we and others in industry and government have worked to raise awareness in Congress as to the devastating effects of sequestration — the federal law passed last year through the Budget Control Act that forces automatic across-the-board cuts in government spending. In July, we informed you that, without clear direction from the government about how these cuts would be implemented, the corporation could issue conditional Worker Adjustment and Retraining Notification (WARN) notices to a substantial number of employees.

    We have been working closely with the government to understand our obligations under the WARN Act and to ensure our employees are provided fair treatment and appropriate notice, if their jobs are impacted by sequestration. On Friday afternoon the U.S. Office of Management and Budget (OMB) and the Department of Defense (DOD) released guidance clarifying responsibilities under the WARN Act and outlining their timeline for making sequestration-related program decisions.

    After careful review of the additional guidance provided by the Office of Management and Budget and the Department of Defense, we will not issue sequestration-related WARN notices this year. The additional guidance offered important new information about the potential timing of DOD actions under sequestration, 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. The additional guidance further ensures that, if contract actions due to sequestration were to occur, our employees would be provided the protection of the WARN Act and that the costs of this protection would be allowable and recoverable.

    We remain firm in our conviction that the automatic and across-the-board budget reductions under sequestration are ineffective and inefficient public policy that will weaken our civil government operations, damage our national security, and adversely impact our industry. We will continue to work with leaders in our government to stop sequestration and find more thoughtful, balanced, and effective solutions to our nation’s challenges.

    If sequestration were to happen, we are compelled to comply with the law and will do so as respectfully and as ably as we can. While we work to stop sequestration we will also continue to petition the government to outline exactly how sequestration will be implemented so that we can responsibly prepare for the impact to our employees and our business. We will keep you informed through direct communication and our LM News series.

    Your commitment to delivering to our customers has never wavered despite the uncertainty that sequestration has caused. We’re proud of your resilience and appreciate your continued focus on our global security mission. Our values and integrity distinguish us, and will continue to distinguish us into the future.

    Honestly, I don’t think Bob Stevens is the kind of guy to fold under a little administration pressure. He just doesn’t know how this will affect the company.

  11. The reauthorization of OSC-I is not the only thing Congress left of out of the CR that is giving the Pentagon headaches. The bill also failed to authorize completion of the prior-year shipbuilding program for the aircraft carrier CVN 71 overhaul. The Pentagon has told Congress if the authority to finish the work on this overhaul is not provided, the work will have to be suspended by January.

  12. I come out of this environment and still have many friends there. First, note that everyone understands what is happening and no one is going to be fooled by it or know anything more when they get their notices a week after the election than the did a week before the election. The budget cuts are coming unless Congress and the President act, which seems unlikely. Many people have been looking for their next job already and in some cases hoping for a layoff which will provide a severance package they won’t get if they leave first.

    Second, the disuption this is going to cause to the defense agencies and their suppliers and contractors is immense, primarily because everything is not being handled out in the open. Clear and explicit cuts are one thing and everyone can plan, act and move on accordingly. Not knowing if there are going to be cuts, or what shape and form those cuts are going to take means no one can plan or act and the nonsense of deferring the “official” notices just compresses the “official” time everyone has to act. My friends assume the worst and are moving forward as they see best.

    Third, Lockheed-Martin’s actions aren’t surprising but they are a clear indicator of the corporatism and crony capitalism that infests our goevnement and many large businesses. But instead of talking about that, Big Media will focus on the poor unfortunates who are going to lose their jobs and Obama is only trying to help them — by helping himself get reelected, at which point they will wonder where those tire marks all of them came from.

  13. What could be more crony capitalistic than passing laws that affect an industry and then helping favored players to not suffer from the breaking of those laws?

    How can anyone not see what is going on here?

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