Help on the way, Bush tells executives who have already announced layoffs

Associated Press

WASHINGTON — President Bush praised companies that have decided against laying workers off during difficult economic times, saying Friday it was "the right thing to do during this national emergency." His audience also included executives who have cut thousands of jobs.

Bush, addressing some 200 business, technology and agricultural leaders in the White House, said his administration was deeply concerned about those who have lost their jobs amid the slumping economy, and he pledged to "take the appropriate actions" to help them.

"I also know that some in this room have made a tough economic decision by delaying any layoffs or have chosen not to lay off workers, and I applaud you for that," Bush said. "And I thank you for making that decision on behalf of the workers in America. I believe it’s the right thing to do during this national emergency."

Bush did not identify specific companies he was referring to, and the White House declined to release a list of those who attended.

Among those visible to reporters was Sun Microsystems chief executive Scott McNealy. Earlier this month, Sun lowered its earnings outlook for the first quarter and announced plans to cut its workforce by about 9 percent, or nearly 3,900 jobs.

Also present was Hewlett-Packard chairman and CEO Carly Fiorina, whose company has agreed to buy Compaq Computer Corp. About 15,000 jobs are expected to be eliminated.

Michael Dell, chief executive of Dell Computer Corp., was there. In February, Dell announced plans to lay off 1,700, and in May Dell announced another round of layoffs, this time cutting 3,000 to 4,000 jobs.

"This administration is deeply concerned about those who have lost jobs," Bush said. "And we know there are a lot of Americans who hurt, and we hurt for them. And we’re going to work with Congress to take the appropriate actions."

Bush has proposed extending unemployment benefits for an additional 13 weeks for hard-hit regions as part of his $60 billion economic recovery package. Democrats are pushing a $90 billion package with more aid to the unemployed, including health insurance assistance.

The president warned that the government "must be careful not to overspend," and reiterated his view that tax cuts, not spending increases, will pull the nation out of its economic doldrums.

"When we’ve tried in the past to spend our way out of an economic slowdown, we have found that the money has often been spent unwisely," he said.