Lockheed slashes 600 jobs in Owego

Defense contractor Lockheed Martin will eliminate 600 jobs at its Owego plant, a result of the cancellation of its presidential helicopter program. While officials attributed earlier layoffs to multiple factors, this round of cuts is tied directly to the canceled $13B VH-71 project. Affected workers will receive severance benefits. No add'l itional cuts are planned for the Owego site. Defense Secretary Gates first recommended cancelling helicopter program in April, when he announced his budget proposal for the Dept. of Defense. The Navy officially ended the project June. Lockheed won helicopter contract in '05. It called for it to build 23 helicopters & was originally projected to cost $6.5B. He noted when he recommended ending the project it was six years behind schedule & far over budget. Lockheed said in June as many as 750 jobs can be lost at Owego. In May, the company cut 130 positions at the site. The plant now employs 3,000, down from close to 4,000 a year ago, it says. It's possible some part of the VH-71 project can survive. U.S. Rep. Hinchey, whose district includes Owego, & some others in Congress are pushing a compromise that will allow Lockheed to deliver some helicopters called for under the contract. It's already produced 9 helicopters under the deal. If the project restarts, staffing needs in Owego would be reevaluated, he says. But for the moment, it must press ahead with the job cuts given the cancellation.