We have learned today that the Office of Management and Budget (OMB) is urging defense and other government contractors not to issue layoff notices as sequestration approaches. The OMB has even offered to cover any potential legal costs that could come up as a result. The guidance offered by OMB appears to be more about politics than about finding a solution that will offer certainty to manufacturers across the United States.
The NAM has been saying for months that the defense cuts in sequestration amount to surgery with a chainsaw and they will cost the United States more than 1 million jobs by 2014. The cuts threaten both our economic and our national security – an unacceptable reality in such unstable times. As such, we have called for policymakers to take the necessary steps to put a stop to these damaging cuts and find a way to address our national debt by reforming the real drivers of this crisis, entitlement programs.
With so much at stake, and with 67% of manufacturers saying there is too much uncertainty in the market today to expand, grow or hire new workers, it’s a fair to wonder if the time spent urging defense manufacturers not to issue layoff notices would have been better spent trying to find a solution to the problem of sequestration.