Reuters: Bankruptcy News: UPDATE 1-U.S. machinists union opposes Hawker's China sale

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UPDATE 1-U.S. machinists union opposes Hawker's China sale Jul 17th 2012, 03:36 Mon Jul 16, 2012 11:36pm EDT * Concern over job losses, US national security cited * Sale talks with China company disclosed last week July 16 (Reuters) - The machinists' union said on Monday it filed papers in U.S. Bankruptcy Court challenging efforts by bankrupt jet maker Hawker Beechcraft to sell itself to a Chinese company, alleging the move could cost jobs and threaten U.S. national security. The International Association of Machinists and Aerospace Workers said in a statement the sale deserved scrutiny from federal regulators, state officials and the community of Wichita, Kansas, where Hawker Beechcraft is based. It added that the sale should not be rushed through. Hawker Beechcraft, owned by Goldman Sachs and Onex Corp, disclosed last week it was in talks regarding a $1.8 billion sale of the company with Superior Aviation Beijing Co, a 60-40 joint venture between privately owned Beijing Superior Aviation Technology Co and government-backed Beijing E-Tong International Investment & Development Co. The machinists union said its court filing expressed concern that the sale could result in the transfer of commercial and military-related technology to China, leading to the loss of high-paying aerospace jobs while compromising U.S. national security interests. The union also said the sale agreement would require the termination of Hawker's defined benefit pension plans, including one that covers more than 3,500 machinists union members at the company. The proposed sale "has broad implications for the U.S. economy and national security," machinists union International President Tom Buffenbarger said in the statement. "As the necessary review process has not yet commenced, giving Superior the exclusive right to negotiate the purchase of Hawker at this time is premature," he added. In response to the union, Hawker Beechcraft said in a statement that its agreement with Superior allows it to preserve jobs as the negotiating and restructuring process moves forward. It also added that any definitive agreement with Superior would be subject to approval of various agencies as well as a competitive auction process overseen by the bankruptcy court. Link this Share this Digg this Email Reprints

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