Grumman Is About To Get $310 Million In Government Money To Make It Easier To Wipe Out 3,000 Jobs

[Omaha Steve]

http://www.laborradio.org/Channels/Story.aspx?ID=1426731

5/31/2011

The federal government is about to pay Grumman $310 million to make it easier to wipe out 3,000 jobs. Jesse Russell has more.

Northrup Grumman announced last year that it would be shutting down the Avondale Shipyard in Louisiana. Last year the company began scaling down its workforce of 5,000 employees. The shipyard is currently finishing work on what the company expects to be the last ship and once the last rivet goes in the remaining 3,000 workers will be out of a job. Five hundred small business owners sent a letter to President Barack Obama in May to ask him to encourage the company to sell the shipyard to a corporation that would continue assembling ships. They also asked Congress to stop a $310 million payment to the company to assist in shutdown costs. The corporation is expected to make a $120 million net profit from the federal payment. Last week, Republicans in the House voted to make the $310 million payment, in spite of an impassioned plea by Louisiana Second District Representative Cedric Richmond:

: “That is $310 million going to a company for quitting. That’s not the American way. I ask my colleagues to support the amendment and not give $310 million to a company who just made $45 million in three months and is quitting on the American people. “
The federal government is about to pay Grumman $310 million to make it easier to wipe out 3,000 jobs. Jesse Russell has more.

Northrup Grumman announced last year that it would be shutting down the Avondale Shipyard in Louisiana. Last year the company began scaling down its workforce of 5,000 employees. The shipyard is currently finishing work on what the company expects to be the last ship and once the last rivet goes in the remaining 3,000 workers will be out of a job. Five hundred small business owners sent a letter to President Barack Obama in May to ask him to encourage the company to sell the shipyard to a corporation that would continue assembling ships. They also asked Congress to stop a $310 million payment to the company to assist in shutdown costs. The corporation is expected to make a $120 million net profit from the federal payment. Last week, Republicans in the House voted to make the $310 million payment, in spite of an impassioned plea by Louisiana Second District Representative Cedric Richmond:

: "That is $310 million going to a company for quitting. That’s not the American way. I ask my colleagues to support the amendment and not give $310 million to a company who just made $45 million in three months and is quitting on the American people. "

[Scuba]

1. Of the Corporations, By the Corporations, For the Corporations. n/t