Lockheed: No Layoff Notices This Year Ahead of Sequestration

Lockheed Martin announced Monday the company will not issue employee layoff notices this year ahead of potential sequestration cuts scheduled to start Jan. 2, The Hill newspaper reports.

According to Jeremy Herb’s report, the Office of Management and Budget issued guidance Friday saying the government would cover severance costs mandated under the Worker Adjustment and Retraining Notification Act if contracts are canceled.

That practice also applies if contractors did not issue layoff notices, OMB said.

Several other large defense contractors have said they are not planning to send any notices related to sequestration, according to Herb’s article.

BAE Systems and General Dynamics have indicated they could send WARN notices but have not given an idea of whether they will send the notices, The Hill reports.

Under WARN, companies are required to give employees 60 days notice of layoffs, while California and New York have their own laws requiring 90 days advance notice.

OMB said that if plant closings or mass layoffs occur under sequestration, the contracting federal agency would be responsible for employee compensation costs for WARN act liability as determined in a court, Herb reports.

email
Filed in: Featured, News Tags: , , , ,

You might like:

Transparency Market Research: Global Smart Weapons Market Worth $67B in 2019 Transparency Market Research: Global Smart Weapons Market Worth $67B in 2019
Pete Martin: Exelis to Supply Pneumatic Carriage, Release Systems for Lockheed F-35 Pete Martin: Exelis to Supply Pneumatic Carriage, Release Systems for Lockheed F-35
Sandy Samuel to Lead Lockheed Martin’s Commercial Flight Training; Jon Rambeau Comments Sandy Samuel to Lead Lockheed Martin’s Commercial Flight Training; Jon Rambeau Comments
Lockheed’s Stephanie Hill: Mentorship Programs, Partnerships Key for Companies Lockheed’s Stephanie Hill: Mentorship Programs, Partnerships Key for Companies
© 2015 ExecutiveBiz. All rights reserved.