General Dynamics Cutting Third of Workforce

Journal Tribune: “It is a sad day. We aren’t just talking about 110 people losing their jobs, but 110 families as well,” said state Rep. Justin Chenette, D-Saco. “The ripple effects of this will be felt community-wide.” Chenette said legislators in the Statehouse need to continue to pursue workforce department and training to ensure individuals can transition into a new line of work and jobs. The rapidly changing military landscape adds to the necessity for different contracted work, he said. “There was false hope raised when General Dynamics requested and was approved a $100,000 TIF by the city for an expansion. This was supposed to create jobs, not take them away.”

Portland Press Herald: “The concern is that in this economic light – with 110 jobs being lost – where are these people going to go? These are highly skilled workers doing a very specific task,” said Rep. Justin Chenette, D-Saco. “It’s good that there will be job counselors brought in to help, but the jobs have to be there for them to find.”

General Dynamics in Saco announces 110 layoffs
By LIZ GOTTHELF
Journal Tribune

SACO — General Dynamics is laying off nearly one-third of its staff at its Armament and Technical Products facility on North Street.

Karl Johnson, director of communications for the company, said Thursday that 110 of the 340 jobs would be cut, between June 14 through July 1.

“It’s primarily a result of a sharp decline in the U.S. Army’s demand for heavy machine guns and automatic grenade launchers” as military forces withdraw from Iraq and Afghanistan, said Johnson.

Ten positions that are being cut are salaried and the rest are hourly, said Johnson.

No cuts are scheduled at any of the other locations in the company’s Armament and Technical Products division, said Johnson.


“The impact is significant to the community,” said Saco Mayor Mark Johnston, noting as well the recent loss of two employers in the area – Hostess and Maine Energy Recovery Company, both in Biddeford.

The jobs being lost at General Dynamics were well-paying jobs and similar jobs won’t be found overnight, said Johnston, but he said he’s still optimistic about the future.

This isn’t the first time there have been major layoffs in the area, he said, and there are some “very positive items” coming to Saco and Biddeford in the future.

“It’s important we all have faith,” said Johnston. “We will recover.”

Johnston said the city had known about the layoffs around the beginning of the year.

Recently, the city council approved a tax increment financing agreement, or TIF, which will allow General Dynamics to retain property taxes on a new addition for six years, which is estimated to total between $80,000 and $90,000. The company is planning the 3,000-square-foot addition to make a new line of products.

Johnston said this will help the company position itself to be more competitive with similar facilities in other states and will help it get contracts in the future.

“It is a sad day. We aren’t just talking about 110 people losing their jobs, but 110 families as well,” said state Rep. Justin Chenette, D-Saco. “The ripple effects of this will be felt community-wide.”

Chenette said legislators in the Statehouse need to continue to pursue workforce department and training to ensure individuals can transition into a new line of work and jobs.

The rapidly changing military landscape adds to the necessity for different contracted work, he said.

“There was false hope raised when General Dynamics requested and was approved a $100,000 TIF by the city for an expansion. This was supposed to create jobs, not take them away.”

“This is devastating news for the dedicated and hard-working men and women at General Dynamics Saco who will lose their jobs through no fault of their own,” said U.S. Sens. Susan Collins and Angus King, in a joint statement Thursday. “We are obviously saddened by this announcement as it is an unwelcome blow to our state’s economy and the families who are already struggling to make ends meet in this challenging economy.”

The senators said their offices are ready to help, in any way they can, those impacted by the layoffs.

— Staff Writer Liz Gotthelf can be contacted at 282-1535, Ext. 325 or [email protected].

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General Dynamics in Saco to lay off 110 workers
By Jessica Hall
Portland Press Herald

SACO –  General Dynamics said Thursday that it plans to lay off 110 employees in Saco, about one-third of its work force, because of reduced demand for heavy machine guns as the U.S. military downsizes operations in Afghanistan and Iraq.

An employee polishes the chamber of a machine gun barrel at the General Dynamics Armament and Technical Products Operation in Saco in this 2007 photo.

The company warned workers that they would be laid off in the period from June 14 to July 1. The group includes salaried and hourly-wage employees who were involved in the production of heavy machine guns and auto-grenade launchers.

"We regret the impact the layoffs will have on the Saco work force," said Karl Johnson, a spokesman for General Dynamics' Armament and Technical Products unit. "This is the best means to protect the remainder of our work force and maintain our cost competitiveness on existing programs and future opportunities."

No other General Dynamics Armament and Technical Products facilities will lay off workers. The unit employs nearly 2,700 nationally.

The facility in Saco, which laid off 30 workers last fall, makes large, heavy weapons that are operated by two or more people.

The average wage for union workers at the plant is about $20 an hour, said Ethan Snow, spokesman for the New England Joint Board for Unite Here, the union representing most of the workers. The company would not comment on wages.

No additional layoffs are expected at the plant in Saco, though General Dynamics said it continuously evaluates its business. Earlier this year, the plant was awarded a $14.3 million contract extension for specialized machine-gun barrel kits being made for the Army.

In addition to the 110 employees to be laid off, 15 will be offered voluntary separation packages, Johnson said. After all the cuts, 215 workers will remain.

"Anytime a community loses jobs, it hurts. Our hearts and feelings go out to those who lost their jobs," said Saco Mayor Mark Johnston. "We are entering a new phase in American history. There's less need for armament."

Johnston said General Dynamics, Saco's largest employer, knew for several months that it would have to cut jobs. Snow said the workers had heard rumors about pending cuts for months.

"The concern is that in this economic light -- with 110 jobs being lost -- where are these people going to go? These are highly skilled workers doing a very specific task," said state Rep. Justin Chenette, D-Saco. "It's good that there will be job counselors brought in to help, but the jobs have to be there for them to find."

The union plans to help laid-off workers file for unemployment.

"It's really tough for a lot of these workers to find comparable work," Snow said. "A lot of these workers have been there for decades."

U.S. Rep. Chellie Pingree, D-Maine, plans to "continue to work with the company as they explore future opportunities that might allow them to hire back some of those employees," said her spokesman, Willy Ritch. "In the meantime, she knows the Maine Department of Labor will be moving quickly to help laid-off workers get the benefits they need and look for new work."

Pingree's husband, S. Donald Sussman, is the majority share owner of MaineToday Media Inc., which publishes the Portland Press Herald.

U.S. Sens. Susan Collins and Angus King of Maine issued a joint statement saying, "We are obviously saddened by this announcement, as it is an unwelcome blow to our state's economy and the families who are already struggling to make ends meet. ... Our offices stand ready to help those impacted by layoffs in any way we can."

In January, the Saco City Council voted to forgive General Dynamics as much as $100,000 in property taxes over the next six years in a tax increment financing package that would allow the company to move forward with an expansion plan.

At the time, General Dynamics planned to build a 3,000-square-foot addition for an estimated $750,000. The expansion was expected to add a product line and support at least 12 jobs.

General Dynamics did not return calls Thursday regarding the TIF or the status of the expansion.

Jessica Hall can be contacted at 791-6316 or at:

[email protected]