Oct 10 (Reuters) - Engineering firm URS Corp andBritish defense contractor BAE Systems added a further4,200 to the number of workers who have been temporarily laidoff due to the U.S. government shutdown.
URS, which builds energy and other industrial projects, hasfurloughed about 3,000 workers, while BAE Systems said about1,200 employees from its intelligence & security and supportbusiness had been told not to report to work for now.
Companies have announced at least 6,600 workers have beenput on furlough due to the 10-day shutdown.
The shutdown was triggered after Congress failed to reach anagreement on funding for the new fiscal year due to a standoffover healthcare reforms.
A prolonged budget impasse could have seriously damagingconsequences for the U.S. and global economies, with retailers,healthcare companies and weapons makers warning of projectdelays, employee furloughs and other impacts.
U.S. jobless claims touched a six-month highlast week, partly due to the shutdown.
The negotiations over the budget are complicated bysimultaneous talks to raise the debt ceiling to stave off apossible default after Oct. 17.
The furloughs at URS and other companies such as weaponsmaker Lockheed Martin Corp include employees working atgovernment facilities that have been closed or those laid offafter their employer received a stop-work order or directions toreduce staff.
"The government shutdown, the continuing effects ofsequestration, and uncertainty about the federal budget are allhaving negative impacts on URS and many other governmentcontractors," said URS CFO H. Thomas Hicks.
URS counts the U.S. departments of defense, homelandsecurity, state and treasury as its customers.
URS and Lockheed also warned of an increase in number ofemployee furloughs if the shutdown continued.
A few defense contractors, including United TechnologiesCorp and Lockheed, withdrew or scaled back plans tofurlough workers after Defense Secretary Chuck Hagel recalledmost civilian defense employees.
- Politics & Government
- Budget, Tax & Economy
- government shutdown
- BAE Systems
- URS Corp