Business Administration Education Guide

Wednesday, June 27, 2007

U.S. Department of Labor denies

Intel request to help employees they will lay off in August
Source: Computer World

June 27, 2007 (IDG News Service) -- Intel Corp. plans to lay off 800 workers from a chip-making plant in Colorado by August, after Marvell Semiconductor Inc. began ordering those parts from another supplier, Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC).
Intel learned of Marvell's decision to find a new supplier around January, and warned its workers that month that it planned to sell the Colorado Springs plant, said Intel spokesman Chuck Mulloy. He declined to say how much revenue Intel will lose when the contract ends.

Intel plans to offer severance packages to its workers beginning in early August. The company also applied for a federal grant to help those workers learn new skills and find jobs, but the U.S. Department of Labor denied the request, he said.

Now Intel is appealing the government's action, and asking the department to reconsider its decision to withhold a grant from its Trade Adjustment Assistance (TAA) program. Under the TAA, the U.S. government gives aid to workers who lose their jobs through increased imports, providing them training, job search and relocation allowances.

Marvell is struggling with its own problems, including a delisting threat by the Nasdaq stock exchange for failing to file quarterly reports for the last two terms of 2006, or its 2006 annual report. The company is also restating past results, after finding in May that CEO Sehat Sutardja and other top executives had illegally backdated stock options to increase their value.

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