UTX may furlough 5K workers due to gov't shutdown

Oct 03, 2013

United Technologies Corp. says it may furlough more than 5,000 workers if the U.S. government shutdown continues into next month.

The company said Wednesday that its Sikorsky division, which makes Black Hawk helicopters, would be hit first. It expects nearly 2,000 employees, including those employed at facilities in Connecticut, Florida and Alabama, will be furloughed on Monday.

The Hartford, Connecticut-based manufacturer said it would halt some defense manufacturing because government inspectors themselves have been furloughed. That leaves it without the necessary federal approvals to make military products.

If the shutdown continues through next week, the furloughs would extend to its Pratt & Whitney and UTC Aerospace Systems division, bringing the total number of employees on hold up to 4,000. That number could exceed 5,000 if the shutdown stretches into next month.

United Technologies employs about 218,300. Of its annual revenue of $57.7 billion in 2012, $10.1 billion came from the U.S. government.

"This is what happens when House Republicans decide that political gamesmanship is more important than people's jobs," Connecticut's Gov. Dannel P. Malloy, a Democrat, said. "It's unconscionable that so many working families would be unfairly put in this situation."

Members of Connecticut's Democratic Congressional delegation also called for House Republicans to end the budget impasse.

"These wounds are tragically self-inflicted and dramatize the cumulative and increasing destructive economic effects of the shutdown," said Sen. Richard Blumenthal.

U.S. Rep. Rosa DeLauro, whose district includes Sikorsky's headquarters, said, "The political games must end to keep these hardworking men and women on the job, prevent further pain for working families and end the damage it is inflicting on our economy."

The partial , which took effect Tuesday, has idled roughly 800,000 "non-essential" federal .

United Technologies' stock fell $2.40 to close at $104.98 Wednesday.

Explore further: Google hits back at rivals with futuristic HQ plan

not rated yet
add to favorites email to friend print save as pdf

Related Stories

United Tech: Europe improving, military parts down

Sep 17, 2013

Sharp cuts in U.S. military spare parts orders are hurting United Technologies Corp.'s helicopter maker, Sikorsky, the chief financial officer said Tuesday, although he was more optimistic about prospects in Europe.

Shutdown blocks care for kids with cancer (Update)

Oct 01, 2013

The US government shutdown could block hundreds of cancer patients, including children, from entering last-ditch clinical trials for treatment, a spokesman for the National Institutes of Health told AFP Wednesday.

Shutdown makes US 'less desirable' for science

Oct 02, 2013

The US government shutdown puts international science collaboration in peril and could have far-reaching impacts on innovation and research, a top science group said Wednesday.

Recommended for you

Google hits back at rivals with futuristic HQ plan

19 hours ago

Google unveiled plans Friday for a new campus headquarters integrating wildlife and sweeping waterways, aiming to make a big statement in Silicon Valley—which is already seeing ambitious projects from Apple ...

Ericsson sues Apple over patent violations

Feb 27, 2015

Swedish telecoms group Ericsson announced Friday a lawsuit against Apple claiming that the US tech giant continued to use its technology in iPhones and other wireless devices after refusing to renew a licencing ...

Stock market shrugs off net neutrality vote

Feb 27, 2015

(AP)—The stock market largely shrugged off the Federal Communications Commission's vote to impose tougher rules on broadband providers like Comcast, Verizon and AT&T to prevent them from creating paid fast lanes for the ...

Judge orders suspension of WhatsApp in Brazil

Feb 26, 2015

(AP)—A judge says he has ordered the suspension of the globally popular instant messaging system WhatsApp across Brazil because it has allegedly failed to help in an investigation.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.