NORFOLK--The impact of Congress not making a budget deal is being felt today in the Hampton Roads shipyard industry.
Politico first reported the BAE Systems WARN, posting the memo on its Website. It reported the company, with yards in Norfolk, Mayport, San Diego and Pearl Harbor, would issue a total of 3,500 conditional layoff warnings.
Sen. Tim Kaine (D-VA), who learned that 1,600 workers at BAE Systems Norfolk will be receiving WARN notices today, said he said he feels great sympathy for the workers and their families.
"As the Pentagon notifies DOD civilians about potential furloughs, I'm still not willing to accept that the sequester has to happen. All that's required is a willingness for leaders of both parties to take responsibility for this self-inflicted crisis and find a reasonable compromise," he said.
Outside the shipyard Wednesday, several workers told 13News they'd received letters and they're hopeful the layoffs can be avoided and they're disappointed it's come to this.
One worker said he he wasn't so much worried for himself because he's relatively new and doesn't have a family to support. He said he hopes the letters go to employees like him and not people who've been at the yard for a long time.
Meantime, many of the congressional representatives from Hampton Roads will hold a town hall Monday to discuss impact of sequestration. The free and public meeting starts at 9:00 a.m. at the Westin Town Center in Va. Beach. It's hosted by the Hampton Roads Navy League of the U.S. Space is limited so you are encouraged to RSVP to (757) 486-7654.
In Washington, Defense Secretary Leon Panetta issued a message to the Defense Department workforce. In part, Panetta promised, "I can assure you that, if we have to implement furloughs, all affected employees will be provided at least 30 days' notice prior to executing a furlough and your benefits will be protected to the maximum extent possible. We also will work to ensure that furloughs are executed in a consistent and appropriate manner, and we will also continue to engage in discussions with employee unions as appropriate."
Panetta vowed to continue working with Congress to avoid sequestration, which would add $470 billion to the $487 billion in defense spending cuts the department already is making over the next 10 years. If Congress cannot agree on an alternative deficit reduction plan, the cuts go into effect March 1.
Deputy Defense Secretary Ashton Carter warned last week that civilian employees could lose 20 percent of their normal income through September.
For more than a year and a half, the president, the Joint Chiefs of Staff and I have repeatedly voiced our deep concerns over the half a trillion dollars in automatic across-the-board cuts that would be imposed under sequestration and the severe damage that would do both to this department and to our national defense.
The administration continues to work with Congress to reach agreement on a balanced deficit reduction plan to avoid these cuts. Meanwhile, because another trigger for sequestration is approaching on March 1, the department's leadership has begun extensive planning on how to implement the required spending reductions.
Those cuts will be magnified because the department has been forced to operate under a six-month continuing resolution that has already compelled us to take steps to reduce spending.
In the event of sequestration we will do everything we can to be able to continue to perform our core mission of providing for the security of the United States, but there is no mistaking that the rigid nature of the cuts forced upon this department, and their scale, will result in a serious erosion of readiness across the force.
I have also been deeply concerned about the potential direct impact of sequestration on you and your families. We are doing everything possible to limit the worst effects on DoD personnel – but I regret that our flexibility within the law is extremely limited. The president has used his legal authority to exempt military personnel funding from sequestration, but we have no legal authority to exempt civilian personnel funding from reductions. As a result, should sequestration occur and continue for a substantial period, DoD will be forced to place the vast majority of its civilian workforce on administrative furlough.
Today, I notified Congress that furloughs could occur under sequestration. I can assure you that, if we have to implement furloughs, all affected employees will be provided at least 30 days' notice prior to executing a furlough and your benefits will be protected to the maximum extent possible. We also will work to ensure that furloughs are executed in a consistent and appropriate manner, and we will also continue to engage in discussions with employee unions as appropriate.
Working with your component heads and supervisors, the department's leaders will continue to keep you informed. As we deal with these difficult issues, I want to thank you for your patience, your hard work, and your continued dedication to our mission of protecting the country.
Our most important asset at the department is our world-class personnel. You are fighting every day to keep our country strong and secure, and rest assured that the leaders of this department will continue to fight with you and for you.