BAE Systems has sent conditional layoff notices to 3,500 shipyard workers in three states under a law requiring most companies to give employees 60-day notice prior to layoffs or plant closings.
GovExec reports the company cites U.S. budget uncertainties and a Navy cancellation order ship maintenance availabilities as reasons to send the notices.
The 1988 Worker Adjustment and Retraining Notification Act requires companies with more than 100 employees to issue the notices 60 days before either layoffs or closures, the report said.
A company spokesman told GovExec the company is waiting for information on program cuts under sequestration before evaluating possible layoffs.
These notices are tied to the expiration of the continuing resolution on March 27 and not the sequestration cuts scheduled for March 1, according to the report.