Boeing announces big layoffs after 20...

Boeing announces big layoffs after 2012 election

Posted in the African-American Forum


Pioneer, OH

#1 Nov 10, 2012
"Boeing Announces Big Layoffs in Defense Division After 2012 Presidential Election … UNREAL

"Isn’t this rather curious and convenient for President Brack Obama? Boeing announces massive layoffs in their Defense Division. No collusion here now is there. It was mere coincidence that Boeing would announce such a massive layoff after the 2012 election so not to adversely affect Obama’s chances of reelection. Unbelievable. The Lonely Conservative also shows her disgust in Boeing’s announcement. More evidense that it was just one big plan on Obama’s part to keep info from the voters prior to the election.

Boeing announced a major restructuring of its defense division on Wednesday that will cut 30 percent of management jobs from 2010 levels, close facilities in California and consolidate several business units to cut costs.

Boeing, the Pentagon’s second-largest supplier, said the changes were the latest step in an affordability drive that has already reduced the company’s costs by $2.2 billion since 2010, according to the memo.

The measures come as U.S. weapons makers are under pressure to cut costs and preserve profit margins amid dwindling defense spending in the U.S.

In a message to employees, Dennis Muilenburg, chief executive of Boeing Defense, Space & Security, said the company aimed to cut costs by an additional $1.6 billion from 2013 through 2015."

Pioneer, OH

#2 Nov 10, 2012
"The Obama Administration issued a memorandum (White House link) late Friday, instructing Federal contractors that they should not provide WARN Act notice to employees facing sequestration. The WARN Act is designed to protect “workers, their families, and communities by requiring most employers with 100 or more employees to provide notification 60 calendar days in advance of plant closings and mass layoffs.” This White House directive follows a July 30, 2012 guidance letter from Jane Oates an Assistant Secretary at the Department of Labor, who concluded that no notice was necessary, specifically stating “As long as the likelihood and timing of contract cancellations remains speculative, an employer is not obligated to provide WARN notifications.”"

If defense contractors were to issue WARN notifications, they would need to be issued just days before the election as the sequestration cuts would occur on January 1st (and the law requires at least 60 days notice). Any notifications would create a huge political risk for the Obama administration. According to a report in The Hill, this recent White House memorandum “raised the stakes” by telling “telling contractors that they would be compensated for legal costs if layoffs occur due to contract cancellations under sequestration — but only if the contractors follow the Labor guidance.”

Republicans complained,

“The Obama Administration is cynically trying to skirt the WARN Act to keep the American people in the dark about this looming national security and fiscal crisis,” Sens. John McCain (R-Ariz.), Lindsey Graham (R-S.C.) and Kelly Ayotte (R-N.H.) said in a statement.“The president should insist that companies act in accordance with the clearly stated law and move forward with the layoff notices.”

Republicans further argued that the White House guidance was merely pushing the cost of layoffs onto taxpayers. It’s not clear whether contractors will comply with the White House’s guidance, or if they will take a more cautious route and notify employees of potential layoffs. Lockheed Martin, which employs 103,000 people and has 40,000 suppliers has not made a decision about whether they will send WARN notifications."

Gregory S. McNeal is a professor specializing in law and public policy. You can follow him on

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