End of Army Contract Ups Unemployment in Millville

Boeing is laying off 30 people from its Millville center after a $43 million contract with the U.S. Army ended.

NJ Spotlight News | November 25, 2014 | Politics

By Lauren Wanko
Correspondent

“Any time anyone is laid off in the city of Millville, it’s a concern,” said Millville City Clerk Administrator Susan Robostello.

Boeing is laying off 30 people from the company’s Millville Modification Center located at the city’s municipal airport. Boeing had a three-year $43 million contract with the U.S. Army to modify Chinook helicopters. A company spokesperson confirms the contract has ended and the U.S. Army is not renewing the contract with Boeing. The U.S. Army did not return our repeated requests for comment.

When asked what this means for the city, Robostello said, “It means we have to work harder to provide new jobs, we have to work harder to get industry to come to the city of Millville.”

Congressman Frank LoBiondo tells NJTV News he’s disappointed the Army has not chosen to renew Boeing’s contract for the work, calling it a nonsensical decision.

“I’ve registered my strong objection with Army officials,” says Congressman LoBiondo, “particularly after an outstanding partnership with the community and exceptional performance by the South Jersey employees. I will continue to work with Boeing officials to see if additional contract opportunities are available locally.”

The U.S. Census Bureau indicates Cumberland County has one of the highest poverty rates in the state — 20.6 percent.

“In Cumberland County we’re definitely not accelerating like the rest of the country so we need to work on that,” Robostello said.

Millville resident Paul Bonney works across the street from the Boeing Modification Center.

“A lot of people worked there. A lot moved here actually with families to have that job,” he said.

He worries how the layoffs will impact the local economy.

“It’s a big deal. Taxes are high, the wages haven’t went up, jobs are hard to find,” Bonney said.

Boeing wouldn’t provide the total number of people working at the Millville facility. The company employs about 180 people in New Jersey. A spokesperson says Boeing has notified the impacted employees of the reduction in force.

“I think they could probably still find work for them. The Army is big, they got contracts out all over, we’ve got the qualified people, why not bring the contracts here?” asked Millville resident John Antonickuk.

A spokesperson says Boeing continues to pursue and evaluate opportunities for rotorcraft support work here.