Hawker employees await layoff news
Nov. 10--By Molly McMillin
It has been a tough week at Hawker Beechcraft.
With layoff notices looming Friday, Rita Rogers of the Machinists union said she has been walking the shop floor.
"The morale is really down because of the unknown," said Rogers, Machinists District 70 assistant directing business representative. "It's hard."
Some employees were recalled from layoff as recently as June, Rogers said. And the holidays are coming up.
Company officials have not yet said how many jobs will be cut. Rogers said she is waiting to hear how many union jobs will be affected.
Hawker Beechcraft CEO Bill Boisture sent a letter to employees last Friday saying job cuts are necessary because the market hasn't returned as soon as expected. In the letter, Boisture said 60-day layoff notices would be issued Friday as the company adjusts its workforce to market realities. The reductions will affect all levels of the company, he wrote.
Hawker Beechcraft currently employs 6,000, including about 4,700 in Wichita.
Company spokeswoman Sarah Estes said she had no additional information beyond what Boisture said in his letter last week.
Last year, the state of Kansas agreed to give Hawker Beechcraft $40?million in tax-exempt bonds to upgrade the company's products and reconfigure operations. That includes $10?million to train workers. The city of Wichita and Sedgwick County agreed to add $5?million together. The action came amid fears that the company would move its operations to Louisiana. The bonds are to be repaid through employee withholding taxes.
In exchange, Hawker agreed to keep its headquarters and most of its operations in Wichita at least until Dec. 31, 2020. It also agreed to employ at least 4,000 people.
Penalties don't kick in, however, unless employment drops below 3,600. Should that occur, the annual bond payments, to be made each year through 2015, will be reduced according to a formula based on job numbers. Should employment fall below minimum levels in years five through 10 of the contract, Hawker Beechcraft has agreed to repay the state according to a formula based on headcount.
The company has moved some work to Mexico and to outside suppliers as it works to close Plants I and II and cut costs. It also is cutting jobs as part of that effort, called "Project Challenge." The latest announced cuts appear unrelated.
Reach Molly McMillin at 316-269-6708 or at mmcmillin@wichita.
Copyright 2011 . All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Copyright 2011 - The Wichita Eagle, Kan.