Obama’s Department of Labor Covering Up Mass Layoff Possibility After Auto Defense Cuts

Obama's Department of Labor Covering Up Mass Layoffs Just Days Before Election, After Auto Defense Cuts Kick In

Obama's Department of Labor Covering Up Mass Layoffs Just Days Before Election, After Auto Defense Cuts Kick In

Why is the Department of Labor telling defense companies that it would be “inappropriate” to notify their employees of the good possibility of massive layoffs that the Democrats are forcing on the American People after the automatic defense cuts kick into effect?

The WARN Act, which is a law that REQUIRES companies to give their employees at least 60 days notification before layoffs take place, is being politically manipulated by Obama and his cronies in the Department of Labor.

Obama’s Department of Labor (DOL) is now telling defense companies that the WARN Act does not apply to defense companies, so it would be “inappropriate” to give the proper 60 day notification before hundreds of thousands of jobs are lost just days before the next election.

The Obama administration is trying to hide the fact that hundreds of thousands of jobs will be lost, just days before the next election, and because he actually does want the defense cuts, he designed the “Super Committee” to fail so the cuts would be the end result, and Obama himself could deny responsibility for the cuts.

The truth is that Obama wants the defense cuts to happen, but doesn’t want the American People to know that his administration will be killing a huge number of additional jobs, just days before the election, which besides the lost jobs, will also make our country much less safe.

The federal law requiring worker notification of mass layoffs doesn’t apply to defense companies and other government contractors affected by the possibility of across-the-board budget cuts beginning early next year, the U.S. Department of Labor said.

In guidance posted today on its website, the Labor Department said it would be “inappropriate” for companies to send 60-day notices to their employees given the uncertainty about whether the reductions will occur or which jobs will be cut.

Legal notice “to employees of federal contractors, including in the defense industry, is not required 60 days in advance of Jan. 2, 2013, and would be inappropriate, given the lack of certainty about how the budget cuts will be implemented and the possibility that the sequester will be avoided before January,” the department said.

Companies led by Lockheed Martin Corp., the world’s largest defense contractor, have said federal and state laws may require them to issue notifications of potential job cuts days before the Nov. 6 election unless President Barack Obama and Congress act to avert automatic defense reductions of $500 billion over a decade that would start on Jan. 2.

The department was clarifying requirements under the Worker Adjustment and Retraining Notification Act, also known as the WARN Act.

Partisan Fight Brewing

The Labor Department guidance, prepared for state agencies that aid laid-off workers under the law, comes as a partisan fight is building over the defense reductions, with Democrats insisting that Republicans agree to some tax increases to avert the cuts. The cuts stem from last year’s clash over raising the debt limit, with the automatic cuts employed as a fallback if both parties couldn’t agree on a broad debt-reduction package.

Companies and industry groups, such as the Aerospace Industries Association, are also demanding more clarity from the White House and Pentagon over how the cuts will be implemented. The defense cuts amount to about a 10 percent reduction.

In a statement, House Armed Services Committee Chairman Howard P. “Buck” McKeon accused Labor Secretary Hilda Solis of participating in a political gambit, and said Obama should focus on ending the budget impasse with Congress.

‘Politically Motivated’

“As it stands, the only certainty we are dealing with is that dramatic cuts will force huge job losses,” McKeon said in a statement. “And as a result of Secretary Solis’ politically motivated guidance, people will still get laid off because of the president’s irresponsibility, but they won’t have the notice to protect themselves and their families.”

Republican Senators John McCain of Arizona, Lindsey Graham of South Carolina and Kelly Ayotte of New Hampshire, in a joint statement, likewise criticized the Labor Department’s action as a “deliberate political effort from the White House to skirt the law” and use national security as “a partisan bargaining chip.”

Disputing that, Representative Adam Smith of Washington, the ranking Democrat on the House Armed Services Committee, commended the Labor Department for “an important and correct interpretation of the law” that avoids actions that would “needlessly alarm hundreds of thousands of workers when there is no way to know what will happen with sequestration.”

The Labor Department’s move could boost prospects the cuts will occur, Byron Callan, a defense industry analyst with Capital Alpha Partners LLC, said in a note to clients.

“The guidance could marginally increase the probability of sequestration as an absence of layoff notices might entail less constituent pressure for Congress to act,” he said.

WARN Act

The federal WARN Act, which became law in 1988, requires most employers with 100 or more workers to give 60 days’ notice of plant closings or “mass layoffs” — labor cutbacks affecting 500 or more workers, or at least 33 percent of the workforce for companies with fewer than 500 employees.

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