An amendment introduced by U.S. Rep. Travis Childers, D-Miss., was passed in the House that would diminish ebbs and flows in production and hiring within defense contractors — including one in West Point, Miss. — that manufacture mine-resistant, ambush-protected vehicles called MRAPs.
Navistar was previously forced to lay off 800 employees, Childers said. More recently, the North Mississippi company in his First District was awarded another contract requiring them to once again hire 800 employees in order to meet the production deadlines put in place by the military, but the majority will be laid off again in October when the contract is completed.
The amendment, approved Thursday night, will help end these cycles of layoffs and rising costs, said Childers, adding that the erratic activity negatively affects employment in local communities and hikes up production costs that are then passed on to taxpayers. The measure was included in the Defense Authorization bill that was under consideration Friday.
“MRAP manufacturers in North Mississippi and nationwide are struggling to meet Defense Department needs while keeping down production costs, remaining competitive, and retaining jobs,” said Childers. “The uncertainty of if and when a company will win a contract, as well as the finite period of time required to fulfill a contract, means that contractors are stuck in a cycle of ramping up and ramping down employment, and consequently hiring, laying off, and rehiring employees.”
The Childers amendment requires the secretary of Defense to submit a report 120 days after passage to evaluate potential strategies for lowering costs and increasing efficiency in the production of MRAPs. The report will also assess the potential of sustained low-level MRAP production as part of a long-term strategy to further reduce costs and save jobs.