9 October 2012
Defense firms growing anxious about sequestration-related defense cuts
Defense contractors are growing anxious as they still do not know whether $500 billion in defense cuts will take place on 1 January 2013 as a result of sequestration; many firms are hoping that the administration and Congress will come to a budget agreement once the election is over, but at the same time, it is something contractors cannot rely on; what complicates the issue is the Worker Adjustment and Retraining Notification Act (WARN), which requires employers with more than 100 employees to give employees a 60-day notice before mass lay-offs or plant closure.Many firms are hoping that the administration and Congress will come to a budget agreement once the election is over, but at the same time, it is something contractors cannot rely on.
“It’s kind of like preparing for a hurricane,” Barbara Duncombe, an attorney who represents government contractors, told the Dayton Daily News. “You never know what the next one is going to be like, but you know there’s certain things you have to do to prepare. A lot of what we’re doing right now is helping companies prepare for their version of a hurricane.”
The looming cuts, which are in addition to $487 billion the military agreed to accept over ten years, have left many unanswered questions for local defense firms, Duncombe told the Daily News....
Much more here.