Monday, October 01, 2012

Obama Admin tells Lockheed Martin to delay layoff notices until after the election

On January 2, massive defense cuts, part of the budget deal "sequestrations," will start and, under law, defense contractors must give workers advance notice of layoffs.  The Obama administration, however, is ordering defense contractors to pretend that the obvious won't happen.  The Hill reports:
Lockheed Martin said Monday it will not issue employee layoff notices this year, ending an election-year showdown with the Obama administration.

The company said it based its decision on new guidance issued Friday by the Office of Management and Budget and the Pentagon.

The guidance said the Pentagon did not anticipate killing any contracts on Jan. 2, the day automatic spending cuts are set to begin hitting defense spending. The guidance also said the federal government would cover severance costs that are mandated under a federal layoff notices law.
This doesn't sit well with some Republicans:
Sen. Lindsey Graham (R-S.C.) called the administration's actions illegal and warned he would do everything he could to prevent taxpayer dollars from being used to pay for severance.

“I will do everything in my power to make sure not one taxpayer dollar is spent reimbursing companies for failure to comply with WARN Act,” Graham told The Hill in a phone interview Monday. “That is so beyond the pale — I think it’s patently illegal.” [Emph. added]
"Beyond the pale" and "patently illegal"?  Aren't those just part of a normal day under Obama's Chicago-machine-style politics?

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