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Government Shutdown update

Linda Hudson
For the remainder of this workweek at least, pay and benefits for BAE Systems employees will not change.

President Obama and Congress have not reached agreement on a continuing resolution to fund the federal government beyond today, when the current fiscal year ends. Consequently, a temporary shutdown of the U.S. government, starting at midnight tonight, appears imminent.
While we hope this event will be short-lived, we need to be prepared for anything. Impact to our company could vary greatly, from little to none on programs that have long-term funding, to significant and immediate on those that don’t. In addition, the consequences of the shutdown likely will differ not just by sector and site, but by contract and individual work group. Your sector leadership will provide specific labor charging guidance.
For the remainder of this workweek at least, pay and benefits for BAE Systems employees will not change. Employees will continue to receive pay through their current workweek, whatever the shutdown’s contractual consequences, and we will continue providing certain benefits to non-union employees and their families for up to 90 days. Continued benefits for bargaining-unit employees are governed by collective bargaining agreements. Your leadership is working hard to assess the potential impact if the funding impasse continues, and we will keep you informed of our progress and provide as much notice as possible of furloughs or other actions affecting employees.
Through its continued engagement with elected officials and their staffs, our Government Relations team has a voice in Washington — and with that voice we are expressing on Capitol Hill our serious concern for what this event could portend for our armed forces and national security.
In the meantime, the best thing you can do is what you always do: Maintain focus on our customers and the critically important work we do to support our nation. Thanks, as always, for everything you do, and the exemplary way you do it.
Linda Hudson
President and CEO
BAE Systems, Inc.