Pentagon puts 650 000 on unpaid leave

2013-07-08 22:09
(Picture: AFP)

(Picture: AFP)

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

kalahari.com

Washington - Heavy US government spending cuts took a sharp swing on Monday as the Pentagon began putting about 650 000 civilian workers on unpaid leave.

The department of defence's civilian employees face leave of up to 11 days through the end of the fiscal year on 30 September.

The time off will slash their pay cheques by 20% at a time when the US economy is crawling at a modest pace four years after the Great Recession ended.

The pay pinch was expected to have the most immediate impact in areas with a large military presence, such as greater Washington DC, California and Texas.

Defence Secretary Chuck Hagel announced the move in May as part of the $37bn cut from the Pentagon's budget under the federal government's broad spending reduction, or sequestration, that took effect on 1 March.

The defence budget took the biggest hit under the $85bn in cuts through the current fiscal year, a drastic programme implemented after political parties failed to reach a compromise over longer-term deficit reduction.

The sequestration lowers government spending by five percent, and Pentagon spending by about eight percent.

Hagel said he had made the leave decision "very reluctantly" because of the disruption to workers' lives and the impact on defence operations.

Ill-designed

The move is expected to save approximately $1.8bn, according to the Pentagon.

The Pentagon already has been forced to reduce spending in a number of areas, including combat training, maintenance and deployments.

The forced time off, which began on Monday, will be done at a rate of one day per week for most civilian personnel.

The International Monetary Fund last month assailed the sharp spending cuts as "excessively rapid and ill-designed".

Releasing its annual report on the US economy on 14 June, the IMF said growth would be only 1.9% this year due to the sequestration, when it had the potential of growing as much as 1.75% points faster.

"A slower pace of deficit reduction would help the recovery at a time when monetary policy has limited room to support it further."

Read more on:    us  |  military
SHARE:

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
7 comments
Add your comment
Comment 0 characters remaining
 

Inside News24

 
/Music
 

17 photo illusions that look so real

What if they aren’t illusions? What if that dog really has a human foot – then what?

 
 

For chic geeks...

It’s THIS easy for someone to steal your ATM pin!
Check out the speed of this robo-cheetah!
New GIF keyboard on iOS for added fun!
Puppy goes crazy over iPad game

Jobs in Cape Town [change area]

Property [change area]

Travel - Look, Book, Go!

Magical Massinga

Spend 5 nights at the gorgeous Massinga Beach Lodge in Mozambique and only pay for 4 from R13 220 per person sharing. Includes return flights, accommodation, transfers and romantic turndown. Book now!

Kalahari.com - shop online today

Pre-order your iPhone 6 at kalahari.com

Hurry and pre-order your own iPhone 6 now at SA’s favourite online store!

Bargain box – 60% off

Reduced prices, very limited stock. While stocks last. Hurry and shop now!

Mind blow low prices on electronics

Get either the Prestigio multiphone or Proline tablet 7” tablet for only R699. Offers valid while stocks last. Shop now!

30% off Barbie toys

Save 30% on all Barbie toys and accessories. Offer valid while stocks last. Shop now!

Baby extravanganza month at kalahari.com

Celebrate baby month with a wide range of awesome baby products. Offers valid while stocks last. Shop now.

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25

Horoscopes
Aquarius
Aquarius

Don`t judge so quickly or expect too much, be more accepting and understanding and make space for fun and spontaneity. ...read more

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.








Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.