By Ann Roosevelt
BAE Systems late yesterday said it plans a forthcoming workforce reduction beginning next month within the company’s U.S. Global Tactical Systems (GTS) business.
The reduction is in response to the loss of the U.S. Army’s Family of Medium Tactical Vehicles (FMTV) contract and its corresponding decrease in production volume.
GTS in the United States will eliminate between 1,100 and 1,300 positions, which includes a combination of BAE employees and temporary workers.
Starting in September, a majority of the 600 temporary positions will be eliminated followed by BAE employee reductions in October and December. GTS currently employs 2,900 people in Sealy and Houston, Texas and Sterling Heights, Mich.
“This is not a closure of anything,” Mike Teegardin, a BAE spokesman for GTS, told Defense Daily yesterday.
In fact, this returns employment levels at Sealy to 2006 levels.
“This was an extremely difficult decision, but a necessary one in order for us to remain viable in an increasingly competitive and challenging environment,” said Dennis Morris, president of BAE’s Global Tactical Systems. “We deeply regret the impact this decision will have on our employees.”
BAE will provide advance notice of layoff to affected employees and, after separation, offer each affected BAE employee a severance package that includes severance pay, benefits and outplacement assistance.
The company is actively working with the Texas Workforce Commission to provide other support programs. In addition, BAE has notified the Michigan Department of Career Development.
The unique capabilities of the company’s world-class manufacturing facility in Sealy, combined with the remaining highly-skilled workforce, will provide GTS the best opportunity to secure new business that is essential for the future viability of the Sealy facility.
“We appreciate the hard work and dedication shown by all of our employees during these difficult months,” said Morris. “We are also grateful to the Texas community, the Sealy FMTV Task Force, the Greater Houston Partnership and our state and federal elected officials for their unwavering support throughout this challenging period.”
BAE and Texas organizations fought hard to regain the FMTV work which, after two protests, was decided in favor of Oshkosh Corp. [OSK]. At the time, the Greater Houston Partnership had said BAE’s loss of the work could cost the region $1.8 billion annually (Defense Daily, Nov. 20, 2009).