Lockheed studying Hagel's recall of DOD employees

It was unclear over the weekend how the return to work of some 350,000 Defense Department employees would impact Lockheed Martin’s plans to furlough 3,000 workers.

Lockheed announced the plan on Friday and said the furloughs were set to begin on Monday.

Then on Saturday, Defense Sec. Chuck Hagel said he was ordering back to work most of the Defense Department workers who have been idle since Monday.

A Lockheed spokesman said when contact, “It’s too early to say” what the impact of Hagel’s decision would be.

“We welcome the announcement and will remain in close contact with the Pentagon. We’re hopeful our programs and contracts can move forward and there is minimal negative impact on our employees,” the spokesman said.

Hagel based his decision on an interpretation of a law signed by President Obama on Sept. 30 that allowed active duty military to continue to work and get paid even though neither a budget nor a continuing resolution was in effect.

According to the Wall Street Journal, Hagel and the Pentagon legal team determined the law can be applied to everyone who contributes to the “morale, well-being, capabilities and readiness of service members.”

Under Hagel’s interpretation that covers a broad range of activities including medical care, working in base commissaries and analyzing intelligence and training staff – functions often provided by contractors.

So if the government personnel managing those functions return to work, it is a reasonable expectation that the contractors supporting them will return as well.

But we’ll have to see.