July 15, 2010

Louisiana lawmakers urge action on Avondale shipyard closing

By Deborah Barfield Berry  |  The Town Talk  |  Link to article

WASHINGTON - Northrop Grumman’s plans to close its shipbuilding operation in Avondale will cost Louisiana thousands of jobs at a critical time for the region’s already fragile economy, Louisiana lawmakers said this week.

The company announced plans Tuesday to close the plant by 2013 and consolidate operations at its facility in Pascagoula, Miss.

The decision “couldn’t have been more cruelly timed,” said Rep. Charlie Melancon, a Democrat.

“We are working to cope with the severe economic impact of the BP oil disaster and now one of our major employers has decided to close up shop and leave our state,” Melancon said in a statement.

Democratic and Republican lawmakers from Louisiana want to meet with Navy Secretary Ray Mabus, a former Mississippi governor, to discuss the closing. Mabus heads the administration’s recovery efforts for the Gulf of Mexico oil spill.

Sen. Mary Landrieu, D-La., said she will urge Mabus and Northrop Grumman officials to “reverse this short-sighted decision.”

Republican Sen. David Vitter, a member of the Senate Armed Services Committee, said President Barack Obama also must “step up.”

As many as 12,000 jobs could be lost, including 5,000 at the shipyard and 7,000 indirectly related to the shipyard, Vitter said. He blamed the problem in part on Obama.

“The Obama administration’s cuts and delays in the shipbuilding budget seriously undermines the industrial base and its support of our national security interests,” Vitter wrote in a July 13 letter to Mabus.

Capt. Beci Breton, a spokeswoman for Mabus, said the secretary is open to meeting with Louisiana lawmakers.

“He has spoken to members of the Louisiana delegation as well as Gov. (Bobby) Jindal about Avondale in the past,” she said.

But Breton said Mabus considers Northrop Grumman’s plan an internal business decision.

“We’ll stay engaged and monitor the developments with the goal of making sure we can execute our shipbuilding plan affordably,” said Commander Victor Chen, a Navy spokesman.

Mississippi lawmakers, meanwhile, welcome Northrop Grumman’s move.

“We are gratified that Northrop Grumman has confidence in our diverse and experienced workforce in Pascagoula to provide even more shipbuilding for our national security,” Sen. Roger Wicker, a Republican and member of the Senate Armed Services Committee, said in a statement.

Northrop Grumman is building several ships for the Navy in the Gulf Coast, including two guided missile destroyers, two amphibious assault ships and an amphibious helicopter carrier under construction in Mississippi, Chen said . The company is also building two amphibious assault ships in Avondale.

Northrop Grumman officials said the consolidation of operations in their Pascagoula facility would reduce costs and increase efficiency.

“This difficult but necessary decision will ensure long-term improvement in Gulf Coast program performance, cost competitiveness and quality,“ Wes Bush, Northrop Grumman’s president and CEO, said in a statement Monday.

Bush said the company will work with federal and state officials to help employees land other jobs. Some workers may work in the Mississippi plant, he said.

Louisiana lawmakers said the state’s economy already has suffered major harm from the Gulf of Mexico oil spill, which has forced the closure of many businesses dependent on tourism or fishing.

Landrieu said state and federal officials have worked hard to support the Avondale shipyard.

“Despite that support and the increased productivity of the employees at Avondale, Northrop Grumman has tragically chosen to turn its back on Louisiana and thousands of workers in the state,” Landrieu said in a statement.