* Would reduce Anniston, Alabama force to around 260
* Linked to reduced orders for Stryker vehicles
* GD sees further layoffs if no U.S. Army orders received
By Andrea Shalal-Esa
WASHINGTON, Jan 14 General Dynamics Corp
said on Monday it notified 139 of its employees at the U.S. Army
Depot in Anniston, Alabama last week that they face layoffs
beginning in March due to a reduction in the company's
production of Stryker armored vehicles.
General Dynamics issued notices to the workers under the
federal Worker Adjustment and Retraining (WARN) Act, notifying
them that the expected layoffs will kick in from March through
April, said company spokesman Peter Keating.
The company already laid off 98 people at the facility last
year. The latest layoff notices will reduce the number of
General Dynamics workers to around 260 from just over 400 now,
Keating said. He said additional layoffs may be announced later,
depending on the level of work to be done at the facility.
Many of the workers are represented by the United
Steelworkers of America union.
General Dynamics says it could have staved off those layoffs
if the Army had placed additional orders valued at around $170
million to retrofit existing Stryker vehicles with a tougher
hull designed to survive roadside bombs, but those orders did
not come through in time.
The Army and other military services are unsure about future
budget levels given mounting pressures on the overall defense
budget, and the failure so far of lawmakers to avert $500
billion in additional spending reductions due to kick in on
Over 300 workers at the General Dynamics plant wrote to
Alabama lawmakers in December, urging them to continue their
efforts to avoid what they called "unnecessary layoffs,"
especially since Army officials have already said that more
double V-hulled Strykers will likely be needed in the future.
The Army has a total of 3,300 Strykers, including about 600
built with the double-V hulls, and nearly 50 that were
retrofitted with the stronger hulls.
General Dynamics says it can exchange the hulls on the
wheeled military vehicles for about half the cost of building
new ones. It says the new hulls protect soldiers about as well
as Mine Resistant Ambush Protected vehicles built specifically
to reduce injuries and deaths caused by roadside bombs.
It has urged the Army to place orders for additional
upgrades now, arguing that interrupting production and
restarting it later will be more expensive and will trigger
layoffs at its own facility and those of key suppliers.
Some of those workers could be rehired later, depending on
when additional orders are placed.
Senator Richard Shelby, an Alabama Republican and member of
the Senate Appropriations Committee, warned the chief of staff
of the Army, General Raymond Odierno, in a letter in December
that delays in placing orders for a third brigade of Strykers
with the double-v hull could jeopardize good jobs at the plant
and would put U.S. soldiers' lives at risk.
In the letter, Shelby said Army officials had told him they
planned to buy a third brigade of the upgraded vehicles, which
he said offered an exponential increase in soldier safety, but
could not give him a timeline for signing a contract with
General Dynamics and starting production.
"I ask that you personally engage on this issue to ensure
our bureaucracy does not unnecessarily limit the rapid
production and fielding of this needed capability," he wrote.
No comment was immediately available from the Army.
Of the 406 General Dynamics workers now at the plant, about
350 currently work on the Stryker program, a company spokesman
said. If no contract is signed with the Army for additional hull
exchanges the total number of workers is likely to be reduced to
around 159, the spokesman said.