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Wed, Dec 10, 2008

Piper Scales Back, Shuts Down Production For Three Weeks

Latest Company To Feel Economic Sting

Piper Aircraft, which received $32 million in local and state incentives earlier this year to stay and expand in Vero Beach, FL, has reportedly started terminating employees, and is not revealing how deep the cuts will be.

The Treasure Coast Palm talked to Janet Mabry, an aircraft mechanic with just over three years completed at Piper. She says her last performance review earned her a raise last month, but last week she says she was told her position has been eliminated, and that it was not temporary.

"Everyone is scared for their job," said Mabry, a mechanic at the company for a little over three years.

Piper also confirmed last week it will shut down operations for three weeks, and that reduced hours for employees may continue through the first quarter of 2009. The company has declined to comment on how many positions have been eliminated, but Mabry says it's about 20.

"It is Piper's long-standing policy not to release specific information regarding employees or details about operations," company spokesman Mark Miller told the paper. "Piper is not immune to the deteriorating global economy, and we have adjusted our work schedules and staffing levels to this reality.

"Piper's efforts are designed to preserve as many jobs and associated benefits as possible, as well as position ourselves to emerge from this downturn as a stronger company," he added.

Under terms of its financial incentive package, Piper has agreed to build the PiperJet in Vero Beach, and must document the creation of 152 new jobs by the end of this month to receive its next installment of the economic development funds.

There is a clause allowing Piper to push that deadline back a year, but invoking it would also delay receipt of additional funds by a year. Incidentally, just last month the planemaker held a job fair in Wichita, hoping to attract workers recently laid off by Cessna and Hawker Beechcraft.

FMI: www.piper.com

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