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November 27, 2008
The BAE Systems Albertville Hangar Complex is facing possible layoffs because of uncertainty surrounding defense contracts during the presidential transition from the Bush to Obama administration, officials said.
“Back on November 21, we announced that the Modernization and Sustainment Solutions business would reduce its workforce by about 8 percent on January 2,” said Scott Fazekas, director of communications. “(Albertville) is one of the locations that may be affected. The management team is working to capture new business and some of that business could result in some of these reductions not being carried out.”
City leaders remain optimistic about BAE’s future in Albertville.
“As far as we know right now, any layoffs will be minimal and probably temporary,” said Albertville Mayor Lindsey Lyons.
“There are defense contracts that are sort of in limbo as we speak. BAE expects those contracts to come through.
“This is mostly due to the change of administrations coming in. Some things just got put on the back burner right now, but things are still looking well for BAE here.”
BAE operates an aircraft completion center at Albertville Regional Airport, where workers modify and upgrade military helicopters for combat operations.
The global defense company opened a new 100,000-square-foot hangar in June. The Albertville complex employs 52 personnel.
City officials expected the complex to create as many as 500 jobs in the next five years when it opened.
Councilman Chuck Ellis is the city’s newly appointed liaison to the airport and said as many as 18 workers could be laid off by Jan. 2.
“BAE officials said the layoffs are contingent upon whether or not a couple of contracts come through at the end of the year,” Ellis said. “If they don’t come through at the end of the year, there’ll be 18 guys without a job.”
Ellis said BAE is optimistic.
“The forecast is still pretty good for the airport,” said Ellis. “The economy slowed down, the stock market’s really tanking and everybody’s trying to figure out what the new president-elect is going to be doing.”
Airport manager Jerry Cofield said right now all the city can do is wait.
“It’s something to be concerned about, but I think BAE has some things on the right path for next year,” said Cofield. “They’ve got a lot of proposals in front of a bunch of people. If those come through, they’ll have plenty of work.
“They’re just like everybody else dealing with the down economy. Their work is tied directly to defense spending. If that gets cut by the new administration, it’s going to affect BAE, the city’s plans and even BRAC. There are a lot of uncertainties. We just have to sit back and wait and see what happens.”
While city officials expect no major layoffs here, BAE intends to lay off 230 workers at its Anniston facilities.
BAE refurbishes and upgrades military ground vehicles in Anniston and will eliminate the jobs by March 31, including about 78 by the end of December.
A BAE official told The Anniston Star that some contracts are running out with none to replace them. The official cited a subsiding war and changing priorities in the defense budget as chief reasons for the cuts.
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