Thursday, March 07, 2013

Lake City Army Ammunition Plant Modernization Spurs Voluntary Worker Layoffs

In 2012, the federally owned, but privately managed, munitions plant near Independence, MO. delivered its 2 billionth round of 7.62-millimeter ammunition to the U.S. Army. It currently employs 2600 people, and it's unclear how many will be offered the voluntary layoff option - or if a round of mandatory layoffs will follow.

From the Kansas City Business Journal:
"The layoffs are not related to sequestration, the automatic federal budget cuts, said Bryan Kidder, a spokesman for Alliant Techsystems Inc. (NYSE: ATK), which operates the plant for the federal government.

“The workforce reduction is the result of a multi-year modernization effort at the 72-year-old facility and recent draw downs in military actions,” Kidder said in a written statement. “ATK will update employees as more information becomes available.”

Employees who choose a voluntary layoff will be provided with a separation package based on the number of years of service, Kidder said in the statement."
Since taking over the plant in 2000, ATK has increased the production rate of 7.62mm ammunition five-fold through expansion, automation, and modernization programs.
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