California loses 4,000 Hughes missile jobs
Friday 11 September 1992
The move will cost at least 4,000 jobs in a state that has already suffered nearly 100,000 defence-related lay-offs in the past few years as a result of Pentagon cutbacks. But it is also being seen as significant because it offers explicit evidence that businesses are moving out of California, once a boom state, because it is cheaper to operate elsewhere.
There have long been warnings from industry lobby groups that a significant business flight was under way, although hard proof of this has been patchy. Hughes Aircraft said that it examined 50 different commercial factors before reaching its decision, and that Arizona was more attractive in almost every aspect, including housing, labour costs, utility rates, workers' compensation laws and business taxes.
Hughes, which produces radar-evading shipboard weapons and cruise missiles, including the Tomahawk and Stinger, is planning to move five programmes from southern California to a plant in Tucson, Arizona. Most of the jobs lost will be among workers from General Dynamics' missiles division, which Hughes acquired last month for dollars 450m ( pounds 230m). In July, the company announced a further 9,000 lay-offs, apart from the latest round of cuts.
Industry leaders in the Los Angeles basin have long complained about high operating costs and the maze of environmental rules introduced to reduce the region's smog. They are unlikely to take kindly to the fact that Hughes has received tax credits from Arizona in an effort to lure it eastward.
Diving in at the deep end is no excuse for shirking the style stakes
- 2 PornHub begs users to stop uploading video clips of Brazil getting beaten 7-1
- 3 Why I'm on the brink of burning my Israeli passport
- 4 War is war: Why I stand with Israel
- 5 L'Oreal cuts ties with Belgium supporter Axelle Despiegelaere after hunting trip photographs
Game of Thrones author George RR Martin says 'f*** you' to fans who fear he will die before finishing Westeros saga
Loom bands: Bids for dress made from colourful rubber reach almost £154,000 on eBay
Supermoon 2014: When and why will the moon look bigger and brighter this summer?
Gaza-Israel conflict: The terrible price children are paying for Israel’s war with Hamas
Online trolls target alleged rape victim Jada, by copying how she appeared in video of attack
Sustained immigration has not harmed Britons' employment, say government advisers
Australia facing international condemnation after turning around Sri Lankans at sea
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
Socialist Worker called to apologise over ‘vile’ article saying Eton schoolboy Horatio Chapple's death is ‘reason to save the polar bears’
War is war: Why I stand with Israel
iJobs Money & Business
£50000 - £70000 per annum: Harrington Starr: Business Analyst Consultant (Fina...
£300 - £350 per day + competitive: Orgtel: My client, a leading bank, is curre...
£28000 - £32000 per annum + pension, 25 days holiday: Ashdown Group: A highly ...
Negotiable: Randstad Education Birmingham: Randstad Education are seeking a Fi...