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Sean O’Keefe, chairman and CEO of EADS North America, weighs in on the $1.2 trillion automatic spending cuts that will hit next year if Congress fai...
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The debate is growing believe it or not and whether or not defense contractors should send thousands of a layoff warnings to the workers.
Of course this is as they brace for 55 billion an automatic spending cuts set to hit the Pentagon next year.
-- if congress doesn't do anything but joining us now -- exclusive interview Sean O'Keefe chairman and CEO of EADS North America.
Certain banks from taking the time have you with us now you're back of the envelope number as far as layoffs is about 101000 if this -- -- committee doesn't do anything.
Well it really depends which just been released as the president just signed legislation to congress and -- transparency act which lays out.
How this sequestration process would work.
Come January 2 and it still triggered so as soon as they get a look at that though he was so much better understanding of precisely what the number is rather -- -- OK but the industry is saying in general they're looking at about a million job cuts if nothing happens.
You also say -- too that it's gonna cost you this is much.
As the cuts because you're gonna -- total supply chain issues -- you'll have suppliers.
Basically going out of business.
How absolutely I think what you have is -- represented on the chairman the national defense industrial association of which.
18100.
Member companies -- part of of which all of them.
Are providing.
Or not only defense military related kind of product.
And platforms aircraft helicopters.
But also for the commercial sector so they're the same kind of activities in many of them will either.
Decide to exit the military or the defense business entirely or they're getting a lot of business -- that closely related to it.
And that's how really tenuous this circumstance and -- having hangover.
The heads of so many folks looking -- the business proposition here.
Now let's talk about the warn -- the worker adjustment and retraining notification act.
Basically says that if you have more than a hundred employees we have big massive -- comment he -- -- sixty days notice.
And -- now the Labor Department saying you don't have to give these people sixty days notice off.
Well congressman enacted this back in the late eighties some believe it was for the purpose of at least given folks -- a fair warning.
When you see something in common you know is getting Mitchell like afraid I.
You know we see a real change and what the market transient.
And in this particular case there's enough but adjustment coming that I think we can make a determination -- most remember.
Companies within the the association I'll lead -- the company -- part of we really see what there is gonna be the consequence of this once administration produces the blueprint.
That now the president has agreed to provide here -- next month to see exactly where those impacts could occur so so it may mitigate that a little bit.
I don't understand I mean it's just come courtesy give these guys and noticed that there are losing their -- and sixty days why would the Labor Department command say.
You got to do that.
People -- doctor secretary labor act I have no idea what -- motivated them do offer advice on provision of law.
The requires notification and I think it's something of the Guinness is really not depend.
Heavily on the more information you've got the -- that the administration lays out what the objectives are gonna be -- they have to meet that.
Then the -- we'll get a better understanding of exactly what the impact will be and we can notify the people who really will be -- I'm in -- had nothing to the fact that the job notices and notification the loss of jobs and come out November 2 just a couple of days before the election.
I'm sure that's not what people at least the Democrats want people going to the polls voting on.
-- losses.
You must notify at least sixty days in advance of which you see coming so.
This is something we're seeing right now there's all kinds of notification taking place just by this discussion right here right that this is going to be a real challenge so as a consequence I don't know -- Motivated that may or may not be I guess I'll refer you than -- to -- that.
-- right -- quickly are you gonna send out notification to these people if they are going to lose their jobs.
We have -- next month we'll have a better very clear understanding of exactly which.
Line items the right appropriation of the budget and so forth of which is in effect and to the extent we can see this going to be an identification.
Were positively and advise our folks that we see there's going to be an impact excellent.
So keep EADS North America thanks for -- take your time have you with us.
Gary was secretary of the navy brand and ask sadness -- -- as knows what he's talking about all right luxury calls by the -- losing.
