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 The WARN Act and Lockheed
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Machi4velli
SFN Regular

USA
854 Posts

Posted - 10/03/2012 :  12:20:47  Show Profile Send Machi4velli a Private Message  Reply with Quote
http://www.aviationweek.com/Article.aspx?id=/article-xml/awx_10_01_2012_p0-501519.xml

The WARN Act requires a company to sent out notices 60 days before making layoffs of more than 100 people.

Cuts to defense are scheduled to occur (more on this in a moment) at the first of the year, which would lead to sufficiently large layoffs for defense contractor Lockheed Martin, meaning they would need to send the warnings out soon to cover the time.

The Department of Labor advised Lockheed not to send out the notices because of the uncertain nature of the potential cuts. And, they later told Lockheed that they would cover the legal fees and any other costs associated with the WARN Act if they do have to make the layoffs and get sued.

Now, the cuts are in the form of "sequestration," essentially a time-bomb of indiscriminate cuts to be applied at the first of the year if Congress cannot compromise and find some money to reduce the deficit.

It seems the administration is hedging its bets on this being settled, and if it's not, blaming Republicans for not compromising (see link)

http://www.barackobama.com/truth-team/sequestration-and-national-security-what-you-need-to-know?source=om2012_RR_G_sequestration-search-us_core_sq4&omtype=ofa&subsource=mkwid%7C4RXRh28j%7Ckw%7Csequestration%7Cmatchtype%7Cb%7Cpcrid%7C15806079013%7Cpl%7C%7C&gclid=CKWLtMDE5bICFQTznAodv34AVg

I enjoy a game of political chicken as much as the next guy, but the argument is "wouldn't it be better to warn the employees and to have a chance they aren't laid off than to not warn them and to have a chance that they are laid off suddenly"?

The other point all of this is ignoring is that the DoD said they didn't expect to make decisions on what to cut until a few months after the first of the year if the cuts did occur, but it appears the DoD did not say this before the guidance from the DoL. This last point may absolve the administration, but it really requires that the DoL understood what the DoD later said, which I'm not sure is true.

Only conservative outlets are covering the story it seems, but to me it certainly seems plausible enough a problem that it really should be covered, if only to give other perspectives. Any thoughts?

"Truth does not change because it is, or is not, believed by a majority of the people."
-Giordano Bruno

"The greatest enemy of knowledge is not ignorance, but the illusion of knowledge."
-Stephen Hawking

"Seeking what is true is not seeking what is desirable"
-Albert Camus

Edited by - Machi4velli on 10/04/2012 21:32:53

Machi4velli
SFN Regular

USA
854 Posts

Posted - 10/03/2012 :  12:38:07   [Permalink]  Show Profile Send Machi4velli a Private Message  Reply with Quote
No, I think it's still a problem even if the DoL knew what the DoD said -- Lockheed made a managerial decision that they expect the layoffs -- DoL comes back and says don't send the notices and we'll cover you if you are forced to make the layoffs anyway. Lockheed already considered the uncertainty of the cuts when they decided it was prudent to send the notices (to cover themselves), so they may well make the layoffs before official word from DoD from what's being cancelled based on their projections (e.g. you're wasting money on 150 workers on a project that you expect to be be cancelled). I don't quite see a good out for the administration now, but maybe I'm missing something.

"Truth does not change because it is, or is not, believed by a majority of the people."
-Giordano Bruno

"The greatest enemy of knowledge is not ignorance, but the illusion of knowledge."
-Stephen Hawking

"Seeking what is true is not seeking what is desirable"
-Albert Camus
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Dr. Mabuse
Septic Fiend

Sweden
9687 Posts

Posted - 10/03/2012 :  12:50:40   [Permalink]  Show Profile  Send Dr. Mabuse an ICQ Message Send Dr. Mabuse a Private Message  Reply with Quote
Originally posted by Machi4velli

It seems the administration is hedging its bets on this being settled, and if it's not, blaming Republicans for not compromising

The American-politics cynic in me says screw the Lockheed employees. Screw the Republicans over, for once that it might hurt, then ask them if payback isn't a bitch. Tell the republicans it hurts that it's carma and they've been collecting it for a long time. Time to cash in.

Dr. Mabuse - "When the going gets tough, the tough get Duct-tape..."
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moakley
SFN Regular

USA
1888 Posts

Posted - 10/03/2012 :  13:18:13   [Permalink]  Show Profile Send moakley a Private Message  Reply with Quote
Originally posted by Machi4velli

It seems the administration is hedging its bets on this being settled, and if it's not, blaming Republicans for not compromising
Yep. I see it as untenable that we remain a global empire through the extension of our military while back home removing the safety net from many of the least among us. If we do it is clear how we answer the WWJD question. I see it as inevitable that we will have to have cuts in the DoD budget causing defense contractors to be layed off. Sad, but inevitable.

Life is good

Philosophy is questions that may never be answered. Religion is answers that may never be questioned. -Anonymous
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Machi4velli
SFN Regular

USA
854 Posts

Posted - 10/03/2012 :  15:58:32   [Permalink]  Show Profile Send Machi4velli a Private Message  Reply with Quote
Originally posted by moakley

Originally posted by Machi4velli

It seems the administration is hedging its bets on this being settled, and if it's not, blaming Republicans for not compromising
Yep. I see it as untenable that we remain a global empire through the extension of our military while back home removing the safety net from many of the least among us. If we do it is clear how we answer the WWJD question. I see it as inevitable that we will have to have cuts in the DoD budget causing defense contractors to be layed off. Sad, but inevitable.


I don't know about that, but even if so, still why encourage (and cover the litigation costs for) Lockheed if they think it's necessary to send the notifications? Sure, they won't send them now if the government is absorbing all the legal exposure because it alleviates all consequences.

"Truth does not change because it is, or is not, believed by a majority of the people."
-Giordano Bruno

"The greatest enemy of knowledge is not ignorance, but the illusion of knowledge."
-Stephen Hawking

"Seeking what is true is not seeking what is desirable"
-Albert Camus
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moakley
SFN Regular

USA
1888 Posts

Posted - 10/04/2012 :  05:04:29   [Permalink]  Show Profile Send moakley a Private Message  Reply with Quote
Originally posted by Machi4velli

Originally posted by moakley

Originally posted by Machi4velli

It seems the administration is hedging its bets on this being settled, and if it's not, blaming Republicans for not compromising
Yep. I see it as untenable that we remain a global empire through the extension of our military while back home removing the safety net from many of the least among us. If we do it is clear how we answer the WWJD question. I see it as inevitable that we will have to have cuts in the DoD budget causing defense contractors to be layed off. Sad, but inevitable.


I don't know about that, but even if so, still why encourage (and cover the litigation costs for) Lockheed if they think it's necessary to send the notifications? Sure, they won't send them now if the government is absorbing all the legal exposure because it alleviates all consequences.
Your right about the WARN Act. I believe I was caught up in long term thinking that once the budgetary shit seriously hits the fan that DoD budget must be a part of the cuts in spending. Trying to remain a global empire while having to deal with a fiscal meltdown is irresponsible, ludacris.

Life is good

Philosophy is questions that may never be answered. Religion is answers that may never be questioned. -Anonymous
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