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Obama trying to stop Defense layoff notices

bobwg

bobwg

Expert Expediter
Foxnews and thehill.com By law Defense companies must send out layoff notices 60 days ahead of time. With the Jan 3 automatic cuts looming the companies must send out notices by Nov 3rd and most of the layoffs will be in swing states. The Obama administration is telling the companies not to send the notices and that the administration will help with legal fees. Estimates are 100,000 or more will be get notices
 
davekc

davekc

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bobwg said:
Foxnews and thehill.com By law Defense companies must send out layoff notices 60 days ahead of time. With the Jan 3 automatic cuts looming the companies must send out notices by Nov 3rd and most of the layoffs will be in swing states. The Obama administration is telling the companies not to send the notices and that the administration will help with legal fees. Estimates are 100,000 or more will be get notices
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Certainly more than 100k. As for Obama stepping up with the administation paying for it, that is code words for "yes we are going to screw the taxpayers again, dodge the Federal law again, and send the taxpayers the legal bills I run up so I can get re-elected".
 
W

wahoofan

Expert Expediter
davekc

davekc

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That is correct. He wants them to break the law, and the taxpayers will pay for their defense/fines for breaking that law. Just unbelievable.
 
Turtle

Turtle

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They really won't be breaking the law. Despite the spending cuts having a direct impact in defense spending, the cuts do not specify that existing defense contracts are to be cut. The Pentagon announced they have no plans to, and do not foresee, cutting any existing defense contracts, therefore there would be no reason to anticipate any mass layoffs in Jan.

There won't be any defense/fines paid for breaking the law, but rather any severance pay related to any unexpected layoffs would be recoverable by those companies affected. A subtle but not insignificant difference. Severance pay is a knowable, finite number, whereas fines and legal defence would likely be in the trillions, if recent history is any indicator.
 
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davekc

davekc

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Staff member
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Turtle said:
They really won't be breaking the law. Despite the spending cuts having a direct impact in defense spending, the cuts do not specify that existing defense contracts are to be cut. The Pentagon announced they have no plans to, and do not foresee, cutting any existing defense contracts, therefore there would be no reason to anticipate any mass layoffs in Jan.

There won't be any defense/fines paid for breaking the law, but rather any severance pay related to any unexpected layoffs would be recoverable by those companies affected. A subtle but not insignificant difference. Severance pay is a knowable, finite number, whereas fines and legal defence would likely be in the trillions, if recent history is any indicator.
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I thought under the cuts, they had a list of what was getting scrapped? They won't break existing ones, but there won't be any renewed either.
That is why Sikorsy was laying off people as well as Lockheed threatening.
 
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bobwg

bobwg

Expert Expediter
THe PROBLEM is Obama wont say what is to be cut and the Defense is already cutting force size thousands of sailors are being forced out of the Navy ahead of the Jan 3 cuts
 
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