After trying to cut costs by reducing wages and work hours, Duncan Aviation has “had to implement a reduction in its nationwide work force.” It is the first such action in Duncan’s 53-year history, the company explained in a statement. The layoffs affect 304 positions, including 170 at Duncan’s Lincoln, Neb. headquarters; 122 in Battle Creek and Kalamazoo, Mich.; and 12 at satellite avionics and engine facilities in the U.S.
Pratt & Whitney Canada said yesterday it planned to lay off 1,000 workers in the coming months, due mainly to falling demand for the engines it supplies to business jet makers. The cuts will affect some 10 percent of the company’s global workforce, 7,000 of whom work in Canada and the remaining 3,000 in other countries.
Nordam recently laid off 63 employees, primarily from its interiors and structures division, which is responsible–for the most part–for business aviation cabin components.
Among other measures, manufacturers are increasingly looking to layoffs for
cost-cutting as demand dwindles and aircraft production rates drop. Analysts and industry observers look for things to get worse before they get better.
The Nordam Group recently laid off 63 more employees, primarily from interiors and structures operations, which are responsible for business aviation cabin components. According to incoming CEO Bill Peacher, who will take over effective January 1, the reduction in force to date has amounted to about 7 percent of the employment base, including salaried, hourly and temporary contract employees, as well as losses due to attrition.
For the third year in a row, Duncan Aviation was named one of Fortune magazine’s “100 Best Companies to Work For in America.” The Lincoln, Neb. services company was the only general aviation firm to make the list. Ranked at number 25, Duncan was selected by the magazine based on random employee surveys regarding workplace culture, career opportunities, training and education benefits, worker appreciation and compensation.
Gulfstream Aerospace agreed to pay $2.1 million to 61 former employees–none of them company pilots–in an age-bias settlement with the Equal Employment Opportunity Commission (EEOC), but denied that it “engaged in any discrimination based on age, or committed any other violation.” In its lawsuit, the EEOC alleged the Savannah, Ga. manufacturer targeted employees 40 years of age or older during a spate of layoffs in 2000.
Are the new Department of Labor (DOL) “Fair Pay Rules,” which became effective August 23 and changed the overtime pay rules for workers earning less than $23,660 per year, or $455 per week, in danger of extinction? By a vote of 223 to 193 last month, the House tacked an amendment on to the $142.5 billion measure funding education, worker training and health programs that would block the DOL rules.
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