Despite administration warnings that notices related to sequestration were unnecessary, Lockheed Martin and Pratt & Whitney are continuing their preparations.
Lockheed Martin and Pratt & Whitney are going forward with plans to issue layoff notices to thousands of employees due to looming defense cuts under sequestration, despite administration claims that such warnings are unnecessary.
U.S. defense companies planned to start handing out pink slips in November under federal mandates outlined in the Worker Adjustment and Retraining Notification (WARN) Act, due to the anticipated $500 billion automatic cut to defense coffers are set to go in place in January.
But administration officials from the Department of Labor have argued that such notices did not fall under the act’s mandates, noting the law only required notices to be sent out if layoffs are caused by a foreseeable event.
Since Congress has the power to come up with an alternative sequester plan, the White House argues, those automatic defense cuts don’t qualify as a foreseeable event.