L3Harris, a company that has been awarded numerous defense contracts as of late, made the decision to save a few more bucks at the expense of its workers. The company decreased the workforce by an estimated 2,300 jobs to save money and appease their shareholders. The L3Harris Corporate Board has made a promise to its shareholders to cut operating costs and save a minimum of $1 Billion over the next 3 years. The company continues to push the “trusted disrupter” catchphrase, which at this point, just sounds like Will Farrel shouting, “Shake and Bake!” from the movie Talladega Nights.
This is the email L3/Aerojet workers received on April 11th, 2023
In January, L3Harris reported that its 2023 profits went up 12.9% compared to the previous year. This and paying workers in rural Arkansas Walmart wages wasn’t good enough, cutting their benefits in half wasn’t good enough, now they have cut key jobs and added that workload on existing employees to squeeze just a little more for the shareholders to line their pockets in dividends and stock price increases.
Sara Banda- L3Harris spokesperson released a statement on the mass layoffs.
“L3Harris continues to focus on operational performance and delivering on our LHX NeXt commitments, including $1 billion in gross cost savings over the next three years. With this in mind and having identified a series of opportunities to streamline our operations, we have made the difficult decision to right-size our workforce. As our industry’s Trusted Disruptor, we will continue to think differently about how we deliver value to both our customers and our shareholders.”-Sara Banda- L3Harris spokesperson.
Sara Banda’s statement. She even keyed the term “right-size our workforce” as if firing senior employees who make more money while keeping the 6-month employees who make far less, is somehow the right thing to do. There was zero consideration or even empathy for the workers that have built their fortune in Mrs. Banda's statement release regarding the event.
These cuts included Aerojet workers in Camden, AR and Huntsville, AL. We asked for a statement from an employee that spent over 25 years with Aerojet Rocketdyne, who was blindsided with a surprise “your jobs been done away with, please leave the property” by people the individual had worked with for years.
(All employee testimonials have been kept anonymous, as the individuals have requested. We have also removed any content that may hint to their identity.)
“I worked 10 years in production and 23 in other areas. I was one of the first to get laid off. I was leaving my office to go to the restroom when Sheila Primm said to get my laptop and bag and come with her. We exchanged some small talk. then I was taken to Nick Cameron’s office, he’s acting HR Manager, since L3 let Stacy Cook go. He asked me to sit and had Rayna Webex with him. She said 2 sentences, “long time since I have seen you” and “your job has been done away with". That’s when Shiela Prim took me to my office. I couldn't even get my stuff, I had to point at my things for them to ship to me. Then she escorted me out. I still haven't gotten my stuff; it’s been almost 2 weeks.
My benefits ended that night, and I just got cobra insurance papers for $600 a month. If I don't have a job, how can I afford that. I can't get severance play till or within 60 days. I could starve to death before 60 days, they don't give a shit. Also, the CEO unloaded his stock that day it’s online. He makes 19 million it’s all public. I never missed work, went through audits after audits helping them move on, and now where did it get me? I was an honest hard worker and dependable. I got cut anyway. The first part of the week I had a pat on the back for passing the govt property portion of a major audit. “You’re a team leader and couldn't do it without you”. Then 2 days later, I’m humiliated and escorted off the property.”-Recently Cut Camden L3/Aerojet Employee of 25+ Years of Service.
In a quick internet search, we found a trove of angry L3Harris employees, venting about their experience with these layoffs. (The thread link will be posted at the end of this article.)
Apparently the "Trusted Disrupter" strategy is to fire the employees with the most seniority because they had the highest wages and accrued benefit packages. The poster mentions unions, for job protection. It has become known across the country that the union represented groups were not affected by the layoffs.
Billable employee refers to service contract employees, the gov't pays for the labor. Why L3Harris is laying off employee's that don't cost any money, is beyond our understanding.
The way this company handled its employees during this difficult time is inhumane!
The Worker Adjustment and Retraining Notification (WARN) Act requires employers with 100 or more employees to provide 60 calendar-day advance notification of planned closings and mass layoffs of employees. Because L3 Harris refused to follow the law, they instead frontloaded the fees they would have to pay their employee’s, in the form of “severance packages”. They did not do this out of consideration for their workers... obviously...
Continuing to add bean counters, while cutting the workforce...
Posters are speculating that the layoff was strategically done, corporate officers including L3Harris CEO Kubasik, dumped stock just before the layoffs and coincidentally a huge decrease in market share costs.
Our contracts have severance packages in the language, so L3 wouldn't be able to avoid violating the WARN Act. Our Bargaining agreements also has layoff and curtailment language defined in them. Least senior must be laid off first, not the highest wage earner, not the guy who raised safety concerns and got them in trouble... We also have retraining and re-call language to keep members working if a job classification is removed.
This seems to be the case across the United States.
Why would they uproot an entire family just to escort him off premises like a common criminal? Imagine being in that situation with your wife and children.
They seem to be playing chess with the livelihood of their own workforce.
Insider trading accusations and picking off senior employees does not seem ethical.
Tell us how you really feel, brother...
L3Harris CEO, Chris Kubasik, has signed a new severance agreement that gives him financial protection against termination Kubasik also established a pre-arranged stock option and sale plan, with sales planned between May and June 2024.
Aerojet employees need to protect themselves and stop dragging their feet.
It's hard not to see the obvious... Camden has the lowest wages in the company and the community is 49% black. For the white brothers and sisters, their discriminatory practices have their big corporate boot on your neck too. You're all in this together.
L3 Harris CEO, Christopher Kubasik sold 40,000 shares of LHX stock in a transaction dated March 25th, 2024. The shares were sold at $212.22 per share, which totaled $8,488,800.00. The Stock dump was disclosed in a filing with the SEC which is a requirement by law. The SEC filing is available in the link below. https://www.sec.gov/Archives/edgar/data/202058/000020205824000059/xslF345X05/wk-form4_1711571780.xml
With inside knowledge of L3Harris's plan to make some decisions that will tank their stocks, he sold his 40,000 shares at just the right time. Don't be surprised that the same happens when they conduct their stock buybacks. They will tank the stock and buy up their own shares to manipulate the market and boost shareholder dividends.
Just three days after the horrible decision to sh#t on their workers, the LHX stock prices tanked. We will be watching for SEC filings to see if the huge stock buyback happened on this date.
Why do corporations conduct stock buybacks?
Buying back stock can be an easy way to make a corporation look more attractive to investors. Reducing the number of outstanding shares increases the corporations “Earnings Per Share” ratio because its annual earnings are now divided by a lower number of outstanding shares. Short-term stock investors often look to make quick buck by investing in a company’s shares leading up to a scheduled buyback. The rapid increase of investors artificially inflates the stock value and boosts the company price per earnings ratio.
On Dec 12th, 2024, L3Harris said it would suspend its merger and acquisition strategy for the "foreseeable future" so it could strengthen its balance sheet and forecast full-year revenue above and beyond their analysts' estimates.
The company stated it expects revenue to be around $21 billion for 2024. Analysts were expecting about $19 billion.
The company has outlined its capital priorities for two years from 2024-2026 which includes investments in research and development, debt payment, and utilize excess cash for dividend increases and share buybacks.
The International Association of Machinists and Aerospace Workers have been actively trying to organize the facility in Camden, AR, Huntsville, AL and has made attempts to contact the Virginia group with no luck at this time. L3Harris sent the Camden management team an email regarding a Union BBQ that was put on for the employees in Camden. The company told the management team to stay far away from the park at which the event was held and notified the team about the law regarding intimidation, surveillance and threats. They actually took a screenshot of the unions notice to management that was posted in the event description on Facebook, and confirmed to the Aerojet management team that it was in fact correct accurate.
L3Harris is micro focused on data, risk assessment and making shareholders happy. The International Association of Machinists and Aerospace Workers are the largest and most powerful labor organization in the defense industry with ties to Washington DC and influence in the defense manufacturing and contract decisions. Breaking the law, violating workers' rights, and intimidating workers that are trying to form a union as American workers under the watch of the IAM&AW is a huge risk for the team and the shareholders.
Camden Aerojet Workers, sign your union authorization card here. https://aerojetcamden.iamsignup.org/
Huntsville Aerojet Workers, sign your union authorization card here. https://aerojet.iamsignup.org/new-acard.aspx
A message to Camden and Huntsville workers from IAMAW organizer Shawn Vanderjack,
Joining the IAMAW does more than just give you the ability to negotiate compensation for your time spent in the workplace. Right now, you are an “At Will” employee, meaning the company can fire you for anything. They don’t have to give you a raise, they don’t have to offer good health insurance, they can do as they please and you can take it or leave it.
When your review comes up, do you worry about an incident months ago where you stood up for yourself? Will management use that against your promotion because you stood up for what was right? Did management get upset when you voiced concern about a safety issue? Will they withhold your raise or make up a reason not to allow you to move to that program you’ve been trying to get into? They can hire relatives and friends as II’s or III’s and have you training them… Policy states that only III’s can train people, guess what; the company policy is a fictional document that only means something when they choose to enforce it. It’s not for you…
You live in a reality where the only way to get ahead is to set aside your dignity so that maybe you will advance, you must smile and be thankful while picking up the peanuts a multi-billion-dollar corporation throws you. Voicing your concerns about safety and working conditions can be met with retaliation in many ways. A company policy is not binding for the company, it’s only binding for you if they choose to enforce it. The company can skirt around their policies, flat out not follow them, and change them anytime they feel like and there isn’t a thing you can do about it. What is binding for the company is a UNION CONTRACT.
Right now, you have the largest defense union in North America’s attention. We see what they have done, we see what they continue to do. If you are ready to take a stand, we are here to back you with the power of over 600,000 members. We do not tolerate policies and practices that pay Walmart wages to communities, simply because half the population is of color, the half that isn’t is still living with the implications of that strategy, 20% of the community lives under the poverty line, and they didn’t think the IAMAW, which represents their other facilities would ever find out what they are doing in a little place called Camden. Well, guess what folks… We found out, we’re here, and we don’t care if they like it or not. Camden is still America, and American workers have rights. If the workers in Camden, Arkansas want a union, they are going to get a union, they call us The Fighting Machinists for a reason.
The Billion-Dollar Corporation will never see you as an individual, but if you all stand together, they will be forced to see you as “THE UNION”.
Yours in Solidarity,
The International Association of Machinists and Aerospace Workers
(IAMAW District W2021)
Source for L3 employee statements across the USA https://www.thelayoff.com/search.php?q=L3Harris
Link to L3Harris DoD awarded contracts Link to L3 contracts https://news.clearancejobs.com/?s=L3+