U.S. Government Shutdown Update

Memorandum

DATE:             October 4, 2013
TO:                  All Non-Represented U.S.-based Lockheed Martin Employees
FROM:            Marillyn Hewson, Chief Executive Officer and President
SUBJECT:      U.S. Government Shutdown Update

We continue to monitor the Congressional discussions aimed at ending the government shutdown and we believe that a prolonged shutdown is possible.

We have been working closely with our customers to understand how our programs and our employees will be impacted during the shutdown, and we have started to receive direction on actions we are required to take. Approximately 3,000 of our employees from across all business areas have been identified to be furloughed starting Monday as a result of the government shutdown. Unfortunately, we expect the number of employees affected by the shutdown to grow as we experience contractual actions and the impact of furloughs among DCMA and other customer inspectors across our business and our suppliers’ businesses.

Employees currently affected by the shutdown will be notified directly by their supervisor or program manager today. This includes employees who are unable to work because the government facility where they perform their work is closed, or their work requires a government inspection that cannot be completed, or we’ve received a stop-work order.

In an effort to minimize the impact on our employees and their families, those affected will be directed to use available vacation time and floating holidays in lieu of being furloughed. Employees who don’t have sufficient vacation available will be advanced up to 40 hours. If the shutdown extends beyond available vacation time, employees will be transitioned to unpaid furlough leave. 

I‘m disappointed that we must take these actions, and we continue to encourage our lawmakers to come together to pass a funding bill that will end this shutdown. If you want to make your voice heard on this issue, I urge you to contact your members of Congress on your personal time. 

I know this is a difficult time and I appreciate your continued dedication to our customers and our mission.