Wed, Jul 15, 2009
Most Cuts At Electronics Plant In Owego, NY
Lockheed Martin says cancellation
of the beleaguered VH-71 program will cost the company 600 jobs at
its facility in Owego, NY. The original $6.5 billion contract had
ballooned to over $13 million, and the program was 6 years behind
schedule, partly due to changes in the aircraft's specs. The Navy
said the contract had been cancelled " “for the convenience
of the government,” not contractor “default.”
A Lockheed spokesman told Bloomberg News the job cuts were
announced Tuesday at the Owego facility. Troy Scully said it would
amount to a 25 percent reduction in the total number of workers at
the plant to about 3,000 by the end of this year, down from 4,000
in January. Scully said it would be the last round of cuts in
connection with the planned Presidential helicopter.
Congressman Maurice Hinchey (D-NY) represents the district that
includes the Owego plant. He is asking the Pentagon to continue the
VH-71 program because he says it would cost up to $21 billion to
start from scratch, more than he estimates it would cost for
Lockheed to finish the project. He said he will attempt to secure
funding for the program in the 2010 Defense Appropriations
bill.
"By continuing Lockheed Martin’s development of a new
presidential helicopter, we can deliver a modern and secure
helicopter fleet to the White House in a timely fashion without
wasting taxpayer money,” Hinchey said in the e-mail
distributed by his spokesman, Jeff Lieberson.
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