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White House Tells Defense Contractors to Break the Law

Written by Gary North on October 8, 2012

By law, defense contractors must warn employees 60 days in advance of a layoff. The law is called WARN: Worker Adjustment and Retraining Notification Act

Because of the “fiscal cliff,” there will be major cutbacks in the Defense Department’s budget, beginning January 1, 2013. So, Lockheed Martin was planning to inform workers of possible firings. The letter was scheduled to go out on November 1.

Lockheed Martin is a major employers in Virginia, which is a key swing state.

This comes into conflict with the White House’s goal of getting voters to the polls and voting for Obama. So, the White House has sent out a letter to Lockheed Martin asking management not to send out the notification. It has promised to pay legal fees if the workers are fired, as scheduled.

What’s this? The White House will pay legal fees? On what legal basis?

Who will pay the White House’s legal fees for paying the Defense industry’s legal fees?

In July the Labor Department issued legal guidance making clear that federal contractors are not required to provide layoff notices 60 days in advance of the potential Jan. 2 sequestration order, and that doing so would be inconsistent with the purpose of the WARN Act.

I see. The law is not really the law. It’s merely a suggestion. No need to obey a suggestion prior to the election.

In Friday’s memo, the Office of Management and Budget reiterated that notice, urging agencies’ contracting officials and CFOs to “minimize the potential for waste and disruption associated with the issuance of unwarranted layoff notices.”

The guidance issued Friday told contractors that if the automatic cuts happen and contractors lay off employees the government will cover certain liability and litigation costs in the event the contractor is later sued because it hadn’t provided adequate legal warning to its employees, but only if the contractor abides by the administration’s notice and refrains from warning employees now.

Lockheed has decided not to send out the warning.

It hopes that the cuts will not be made in January. If they are made, Lockheed will face its mini-fiscal cliff. So, it has announced: “We will continue to work with leaders in our government to stop sequestration and find more thoughtful, balanced, and effective solutions to our nation’s challenges.”

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7 thoughts on “White House Tells Defense Contractors to Break the Law

  1. snakearbusto says:

    "major cutbacks in the Defense Department’s budget" Yeh sure.


  3. Don Rushing says:

    Obama and his friends will always break the law with impunity, because he is not being held accountable for his actions. The
    liberal main stream press will always cover his sorry butt every time. No more Obama Nov 6, 2012.

  4. Your caps key is stuck again.

  5. This is the most corrupt administration in history, Well they are from Chicago, & that is about par for politicians from that city

  6. I believe that the state of Virginia needs to wake up and see what this Administration is doing to their state. I don't believe these people can depend on Obama paying their legal fees and it looks like every household will be affected one way or the other by lost jobs. Every thing that comes out of Obama's mouth is a lie and people seem to just eat up every lie he tells. This state needs to look and listen to Mitt Romney's solution to keep their state safe with employment. I do hope and pray that the Virginia citizens will listen to the next debate. Oh, by the way, did you see where the financial expert said that Mitt Romney's plan would work when Obama said it would not work. That expert has greater knowledge and experience in the field of finance than the Community Organizer who said we have 57 states. Have a great day!

  7. This is the only way obama can keep the job numbers down prior to election.