Lockheed Lays Off 36 at Port San Antonio

March 3, 2014
The Lockheed layoffs reduce what had been about a 300-member workforce. The majority of the affected workers, who received notice Thursday, are aircraft mechanics.

March 01--SAN ANTONIO -- As if it weren't a bad enough week for aerospace at Port San Antonio, Lockheed Martin on Friday confirmed layoffs of about 36 workers, or 12 percent of its local workforce.

Cheryl Kahn, of Lockheed's Kelly Aviation Center, said current work orders couldn't justify current staffing levels.

Boeing, the port's anchor tenant, acknowledged a similar work lull Thursday and said it would issue pink slips to as many as 600 workers, or about a third of its workforce, on Friday.

The Lockheed layoffs reduce what had been about a 300-member workforce. The majority of the affected workers, who received notice Thursday, are aircraft mechanics.

Kahn said employees had been told to expect reductions early in 2014.

"We do expect some larger contracts with work, but that won't be coming in until later in the year or probably going into next year," Kahn said. "Unfortunately, with deep regret, we've had to adjust our staffing to align with the work level we have right now."

Both Lockheed and Boeing have been heavily dependent on Defense Department contracts. That work has lessened considerably due to military draw-downs and federal spending cuts. While the companies have gotten some notable commercial contracts, the work hasn't come fast enough.

"We just haven't gotten enough large contracts in to be able to justify keeping the same level of staff that we had before," Kahn said.

As for military work, Lockheed still is in negotiations to renew its lucrative maintenance, repair and overhaul contract for the T-56 engine, which powers the Air Force's C-130 Hercules fleet. Last summer, the company saw the end of its work on another major military contract, for the TF-39 turbofan engine.

Any increase in staffing at Kelly Aviation Center was a year to 18 months off, Kahn said.

In September, Boeing laid off 50 workers, and the port itself had its first-ever staff reductions in October.

Alex Nava, chairman of Port San Antonio's board of directors, said he expected aerospace work and jobs at the port to rebound. Boeing is awaiting the start of work on the Air Force's executive jet fleet, which Nava said would require rehiring "hundreds" of workers.

"Really, at the end of 2014, hopefully we're close to or at or near the amount of employees that we had at the beginning of 2014," he said.

He said the city was aggressively positioning the port to be a place where aerospace companies could consolidate operations, which is an industry trend.

"There will be jobs in the sector, and we're doing everything we can from the mayor on down to make sure that happens," he said.

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