Robert H. Smith School of Business
The Motley Fool

Market Foolery Featured Podcasts

  • MarketFoolery: 12.17.2014
    Motley Fool Funds analyst Bill Barker breaks down the latest earnings reports from FedEx, Darden Restaurants and General Mills.  Plus we discuss the relative importance of analyst upgrades & downgrades.
  • MarketFoolery: 12.16.2014
    Motley Fool Funds analysts Tim Hanson and Nate Weisshaar analyze Russia’s rising interest rate and falling ruble.  Plus, they share insights (and travel tips) from their recent trips to South Korea and Brazil.
  • MarketFoolery: 12.15.2014
    PetSmart goes private in the biggest LBO of 2014.  Plus we dip into the Fool Mailbag to discuss the price of oil and energy stocks to put on your watchlist.
Capital Business
Posted at 11:52 AM ET, 10/01/2012

Lockheed will not issue layoff notices to employees


Lockheed Martin's logo. (Chris Ratcliffe - BLOOMBERG)
Bethesda-based contracting giant Lockheed Martin has backed off plans to issue layoff notices to employees starting this month, a move the company had said it could be required to make given the impending threat of mandatory budget cuts called for under the sequestration process slated for January.

The company said in a statement today that it will not issue sequestration-related WARN notices this year.” Under the Worker Adjustment and Retraining Notification Act, states require advance notice of an event that might cause significant job losses or facility closures.

The White House issued a memo late last week that directs contractors to follow the guidance of the Labor Department. In a July letter, the Labor Department had said the Worker Adjustment and Retraining Notification Act — better known as the WARN Act — does not require contractors facing sequestration to send notices to their workers that they could be let go.

In its new guidance, the White House said that if sequestration occurs and an agency terminates or changes a contract that results in a plant closing or mass layoff that the contractors’ liability and litigation costs under the WARN Act would be “allowable costs” covered by the contracting agency.

“The additional guidance offered important new information about the potential timing of DOD actions under sequestration, indicating that DOD anticipates no contract actions on or about 2 January, 2013, and that any action to adjust funding levels on contracts as a result of sequestration would likely not occur for several months after 2 Jan,” Lockheed said in its statement.

By  |  11:52 AM ET, 10/01/2012

Tags:  Lockheed Martin, WARN Act, layoff notices, defense contractors, government contracting, sequestration

 
Read what others are saying
     

    © 2011 The Washington Post Company