PROGRAM UPDATE
AUGUST - SEPTEMBER 1995
WORKER AND COMMUNITY TRANSITION WORKSHOP
On September 13-15, 1995, the Department of Energy's (DOE) Office of Worker
and Community Transition convened its third national stakeholders workshop, in
Albuquerque, New Mexico. Over 220 representatives from communities, labor
organizations, state and local governments, industry, stakeholder
organizations, and DOE organizations attended the workshop. The purpose of
the workshop was to discuss the current policies and practices of the Worker
and Community Transition program and to review the actions and commitments
from the April Workshop. The workshop was designed to encourage interactive
dialogue among the meeting participants. Rather than being led by a
designated speaker, each small group discussion session was facilitated by an
independent facilitator. Each participant had an opportunity to express their
concerns, issues, and suggestions for resolving the complex issues we face in
an open, two-way exchange of information. This interactive communication
among participants enabled each party to learn about and better understand the
views and positions of the other.
The format of the workshop included several plenary sessions and a number of
small group discussion sessions. The smaller sessions focused on topics
related to work force restructuring, labor issues, accessing excess property,
community transition, and public involvement issues. The sessions provided a
wide range of views on methods and actions the Department should take to
resolve these issues.
Plenary Sessions
The plenary sessions of the workshop included presentations on the following
topics:
Opening Remarks;
Agenda for Fiscal Year 1996;
Private Sector Experience in Restructuring Large Organizations; and
Review of Actions and Commitments from the April Workshop.
Jim Culpepper, the Deputy Manager of the Department's Albuquerque Operations
Office, gave the meeting's opening remarks. He noted that the Department is
trying to improve its way of doing business, and he emphasized the importance
of team building and cooperation in the Department's activities.
The Agenda for Fiscal Year 1996 was presented by Bob DeGrasse, the Director of
the Office of Worker and Community Transition. His presentation focused on
six areas: (1) the progress of the Privatization and Outsourcing Policy; (2)
objectives and concerns of the Office of Worker and Community Transition; (3)
meeting planning and communications in regard to the Office; (4) the
Department's strategic environment; (5) the Department's budget status; and
(6) accomplishments in work force restructuring from April 1995 to the
present.
Tom Schneider of Restructuring Associates, Inc. gave a presentation on private
sector experience in restructuring, discussing trends and best practices in
restructuring of organizations throughout the world and presenting a case
study of a successful restructuring effort. He asserted that the critical
change is becoming value-based and that successful restructuring is usually
overseen by a co-governance system in which labor unions and management work
together.
Small Group Discussion Sessions
The small group discussions provided an opportunity for direct, informal
dialogue among workshop participants on a wide range of issues. The first
session of the Thursday, September 14 discussion groups included the following
topics:
Work Force Restructuring;
Productivity Improvement and 3161 Objectives; and
Reuse of Physical Assets.
The second session focused on the following topics:
Worker Concerns in a Changing DOE Environment;
Work Force Planning;
Community Reuse Organizations; and
Public Involvement Strategies.
During the small group discussions on Friday, September 15, participants
provided the following types of input:
solutions to questions and problems raised during Thursday's sessions;
issues that should be addressed by the Office; and
recommendations on how to resolve the issues.
Following the Friday sessions, the participants convened in a plenary session
to discuss the points raised during that morning's sessions. The group as a
whole compiled lists of action items to be resolved by the Department. As a
part of commitments made during the workshop, a list of suggestions for Focus
Groups have been developed. If you are interested in participating in one or
more of the Focus Groups, please indicate your interest by completing and
returning the attached form by November 6, 1995. The Focus Groups will work
to identify issues and to propose solutions by the next national stakeholder
workshop.
If you would like more information on the September workshop, the Focus
Groups, or if you would like to obtain copies of handouts from the workshop,
please call, fax, or mail your request to:
Laurel Smith
Office of Worker and Community Transition
U.S. Department of Energy
Forrestal Building
1000 Independence Avenue, S.W.
Washington, D.C. 20585
Phone: 202-586-4091
Fax: 202-586-8403
WORK FORCE RESTRUCTURING PLANS
APPROVAL OF THE ROCKY FLATS ENVIRONMENTAL TECHNOLOGY SITE WORK FORCE
RESTRUCTURING PLAN
On August 24, 1995, the Department of Energy approved for submission to the
United States Congress the Rocky Flats Environmental Technology Site Work
Force Restructuring Plan.
On November 22, 1994, a 120-day notice was issued that identified a work force
reduction of up to 700 positions at Rocky Flats. Subsequently, on February 8,
1995, a second 120-day notice identified an expected reduction of an
additional 1,700 positions during Fiscal Year 1995. These reductions
coincided with the introduction of a new Performance Based Contractor,
Kaiser-Hill, on July 1, 1995.
A voluntary separation incentive package was offered based on the package
included in the Fiscal Year 1994 Rocky Flats Plan. The first window for
selecting this package for the reduction of 700 opened in November, 1994. A
total of 482 EG&G and 38 Wackenhut Security, Inc. employees were accepted for
voluntary separation. A second voluntary separation incentive window for the
reduction of 1,700 positions opened on May 24, 1995. A total of 966 workers
were accepted in this window, bringing the total number of voluntary
separations to 1,486.
The voluntary separation package included enhanced severance that averaged
approximately $21,900 per employee. Displaced worker medical benefits were
provided to qualified employees. The package also included separated worker
retraining, and relocation assistance of up to $4,000 for any new employment
more than 50 miles from the site. An extensive career assistance program was
also provided. Overall costs per voluntary separation were $30,650.
Subsequent to the conclusion of the voluntary incentive election windows,
involuntary separations were necessary for 146 workers in March, 1995 and
involuntary separation notices were issued to 300 workers in June, 1995. An
additional 20 workers were involuntarily separated in September, for a total
of 446 involuntary separations under the Plan. These workers received
contract severance averaging $10,600 and the same additional benefits as
provided under the voluntary program. Those regularly employed since
September, 1991 will also receive preference in hiring. Average cost per
involuntary separation under the Plan is $19,700.
Approximately 336 employees who were not offered employment by Kaiser-Hill
accepted offers from lower tier subcontractors. In addition, approximately
1,500 retained workers received training in either the Rocky Flats Institute
or the Tuition Reimbursement Program to allow them to meet new mission
requirements.
Extensive stakeholder review and comment was provided in the development of
the Plan, including two periods for written comments, 34 meetings with
employees, weekly meetings of the labor management council and monthly
meetings of the Workers Impact Committee made up of a full spectrum of worker,
community and governmental participants.
Overall 2,318 employees have been separated from the prime contractor under
the Plan, including the 336 who were re-employed by subcontractors. As a
result, approximately 1,982 workers are no longer employed performing work for
Rocky Flats. The total cost of the plan is $57,480,000, or an average of
$28,740 per employee no longer working on site. Estimated annual savings as a
result of the reductions are $119,000,000.
VOLUNTARY SEPARATION APPROVALS
VOLUNTARY SEPARATION PROGRAM ANNOUNCED AT LOS ALAMOS NATIONALLABORATORY
On August 21, 1995, the Department of Energy announced the revised plans for
work force reductions at the Los Alamos National Laboratory (LANL).
Previously, the impact of work force restructuring was projected to result in
reduction of up to 500 Laboratory and subcontractor positions. As a result of
the Laboratory's plan to decrease the ratio of support employees to those
engaged in science and technology, it was announced that an additional 600-700
Laboratory and subcontractor positions may be affected.
In order to lessen the impact of an involuntary reduction, the DOE-Albuquerque
Operations Office and Los Alamos National Laboratory would offer a voluntary
separation incentive program to eligible employees. The voluntary separation
incentive program consists of a choice of regular severance pay or $20,000 for
employees who agree to participate. Voluntarily separated employees are also
eligible for retraining, education, relocation, and outplacement assistance
consistent with the previously approved FY 95-96 LANL Site-Wide Work Force
Restructuring Plan.
The voluntary separation program was designed to offset involuntary
separations for personnel in support positions. A total of 250 voluntary
separation offers were accepted. Efforts to match workers who might be
involuntarily separated with vacancies created by voluntary separations have
begun and will continue throughout the 60-day warning period that began on
September 12, 1995. So far 100 voluntary separations have been identified
that will reduce the number of involuntary separations that otherwise would
have been required.
INVOLUNTARY SEPARATION ANNOUNCEMENTS
INVOLUNTARY SEPARATIONS ANNOUNCED AT OAK RIDGE
Beginning August 31, 1995, notices of involuntary separation will be issued
to up to approximately 90 individuals with MK-Ferguson, Oak Ridge Associated
Universities, Radian Corporation, Foster Wheeler and other subcontractors at
Oak Ridge, Tennessee.
These separations are part of an overall 700-900 reduction over the next two
years at Oak Ridge that was announced on May 24, 1995, and result from cuts in
the Department's Environmental Management program budget, as well as
initiatives to increase cost effectiveness and efficiency of operations.
Identification of positions to be eliminated is based on extensive work force
analysis to match available skills with ongoing mission requirements. To the
extent practicable, employees in positions to be eliminated will be reassigned
to other work in order to minimize involuntary separations.
Under the Draft Oak Ridge Work Force Restructuring Plan, involuntarily
separated employees will receive regular contract severance. Qualified
involuntarily separated employees will receive Displaced Workers Medical
Benefits. All involuntarily separated employees will also be eligible for
career transition, educational and relocation assistance. A full description
of benefits provided to involuntarily separated employees is contained in the
Draft Oak Ridge Work Force Restructuring Plan dated June 20, 1995.
INVOLUNTARY SEPARATIONS AND COMMUNITY TRANSITION FUNDING ANNOUNCED AT LOS
ALAMOS NATIONAL LABORATORY
On September 12, 1995, the Department of Energy announced that 60-day notices
of involuntary separation will be issued at Los Alamos National Laboratory to
approximately 300 laboratory employees and approximately 400 subcontractors.
Up to $5 million will be allocated by DOE for community transition activities
to assist new job creation in northern New Mexico. The Department is working
with the Los Alamos community to implement programs that will help affected
workers and minimize the impact of the reductions.
On August 21, 1995, DOE announced that overall reductions at LANL were
anticipated to increase by 600 from the level of 500 previously announced to
approximately 1100. The notices to be issued include both those remaining
from the initial announcement and those not mitigated by the recently
completed voluntary separation program.
The voluntary separation program was designed to offset involuntary
separations for personnel in support positions. A total of 250 voluntary
separation offers were accepted. Efforts to match workers who might be
involuntarily separated with vacancies created by voluntary separations have
begun and will continue throughout the 60-day warning period. So far 100
voluntary separations have been identified that will reduce the number of
involuntary separations that otherwise would have been required.
The Laboratory is committed to minimize outside hiring to fill vacancies
created by voluntary separations. Depending on the success of these efforts,
the total number of separations at LANL may slightly exceed the previously
announced level of 1100. Any reductions above this number will mitigate
future reductions at LANL in Fiscal Year 1996.
The LANL Work Force Restructuring Plan provides that involuntarily separated
LANL employees will receive contract severance and be eligible for education,
relocation, and outplacement assistance. Involuntarily terminated employees
will also be eligible for preference in hiring if they meet the DOE's job
attachment requirement.
Subcontractor separations include 100 associated with the January 6, 1995,
work force reduction announcement and 300 associated with the August 21, 1995,
announcement. Subcontractor employers who have had positions eliminated
through contract terminations may reassign affected workers to other tasks
within their companies as available to minimize involuntary separations.
INVOLUNTARY SEPARATIONS OF CONTRACTORS SUPPORTING THE OFFICE OF CIVILIAN
RADIOACTIVE WASTE MANAGEMENT AT YUCCA MOUNTAIN
On September 22, 1995, the Department of Energy approved issuing notices of
involuntary separation to up to approximately 50-100 employees primarily of
TRW, the M&O contractor, and announced plans to reduce a total of 875
positions supporting the Department's Office of Civilian Radioactive Waste
Management (OCRWM) in the next year.
Congress is considering several proposals to revise the mission of OCRWM and
its funding for Fiscal Year 1996. While the final outcome is not certain, the
range of potential reduction is $100-125 million, about 20% of the FY 1995
funding level.
In anticipation of these reductions, OCRWM has examined contingency plans and
a general policy for decreased spending levels, which include significant
reductions in the contractor and subcontractor work force. OCRWM established
priorities for the activities to be accomplished and defined the work plan for
FY 1996 taking into consideration future needs of the program.
Thus far, specific decisions on work force reductions have been made for work
performed primarily by TRW. Additional reductions will be more precisely
defined as work scope decisions for subcontractors are completed.
The total of approximately 875 anticipated separations will be spread among a
number of firms, with the vast majority expected to occur in Nevada.
Anticipated reductions include 50-100 employees of TRW. An estimated 600-700
subcontractor employees are expected to be separated, which is expected to
primarily consist of 400-500 employees of Kiewit Construction Company due to
the reduction in the underground construction work. Some of the Kiewit
separations may occur in late 1995 but most will occur in calendar year 1996.
It is anticipated that less than 100 employees of Department-operated
Laboratories will be affected. Any such separations will be covered by work
force restructuring plans at their sites. Approximately 60 service support
contractor positions will be reduced with affected personnel primarily in the
Washington, DC metropolitan area. Finally, 115 positions of the US Geological
Survey are expected to be reduced.
TRW issued notices to 61 employees on September 22, 1995. They will receive
two to twelve weeks notice, based on years of service. Additional separations
are expected to be implemented throughout Fiscal Year 1996. Extended health
benefits available under separated workers' contracts are estimated to average
$2,000 per employee. Outplacement assistance will be provided by services
available under the Economic Dislocation and Worker Adjustment Assistance Act
in Nevada and Virginia.
While the site is not covered under section 3161 of the FY 1993 Defense
Authorization Act, it is developing an informal plan document to define the
reasons for this restructuring, the analysis used to determine which employees
would be impacted, and a description of benefits available under the program.
ADDITIONAL NOTICES OF INVOLUNTARY SEPARATION ISSUED AT HANFORD, WA
The Department of Energy announced that 60-day notices of involuntary
separation were issued to approximately 310 employees of Westinghouse Hanford
Company during the week of September 25, 1995. Approval to issue the notices
was given earlier this year.
INVOLUNTARY SEPARATION NOTICES APPROVED AT PRINCETON, NEW JERSEY
On September 27, 1995, the Department of Energy approved issuing additional
involuntary separation notices to up to approximately 166 employees at
Princeton Plasma Physics Laboratory and up to 80 subcontractor employees.
On July 18, 1995, an announcement was made that an anticipated reduction of 90
positions at Princeton Plasma Physics Laboratory was required to meet
immediate budget constraints.
On July 20, 1995, approval was provided to offer a Voluntary Separation
Program with enhanced severance benefits and a Voluntary Reduction in Force
that will affect technician and support staff in skill areas affected by the
budget decrease. A total of 23 employees have elected to take advantage of
the voluntary programs.
Subsequent to the July 18 announcement, the Laboratory has analyzed the impact
of anticipated Congressional reductions in the Fiscal Year 1996 budget
request. Based on that analysis an overall reduction of approximately 270
positions at the Laboratory and its subcontractors is anticipated. The work
force and Congressional representatives were advised of this contingency.
Subsequent notice was provided to the work force on September 22, 1995, and to
the Congress on September 25, detailing the planned involuntary separations.
The Laboratory issued notices for these reductions on September 27-28, 1995 in
order to have separations occur before the beginning of FY 1996. Separated
Princeton University employees will receive pay in lieu of notice as called
for under the Laboratory's personnel practices policy. Separated
subcontractor employees will receive notice and/or severance consistent with
their company policy.
While not a site covered by section 3161 of the FY 1993 Defense Authorization
Act, the Chicago Operations Office is in the process of preparing a work force
restructuring plan. However, due to the unusual FY 1996 budget forecasting
circumstance, which has affected the ability to project future budgets and
work force needs, a plan was not issued prior to the necessary reductions at
the end of fiscal year 1995.
WORK FORCE PLANNING
The first meeting of the Work Force Planning Committee Board of Directors will
take place on October 24, 1995. The Board will vote on the Committee's
mission statement, charter, and several reporting requirements proposed for
the Work Force Information System. For further information, please call Debby
Swichkow at (202) 586-0876.
COMMUNITY TRANSITION ACTIVITIES
A Community Reuse Organization/DOE Field/DOE Headquarters meeting will be held
on November 14-15, 1995, in Washington, D.C. to identify barriers to property
transfer, re-evaluate the current processes and procedures in place for
community transition activities, and other related issues. Focus Groups will
be designated for follow-up on issue resolution and for revision to the
Guidance for Support of Community Transition Activities. For further
information, please call Debby Swichkow at (202) 586-0876.
PUBLIC PARTICIPATION ACTIVITIES
OFFICE OF WORKER AND COMMUNITY TRANSITION INFORMATION EXCHANGEESTABLISHED
The Office of Worker and Community Transition has established a multi-media
Information Exchange to serve as an interactive means of communication with
its stakeholders and the public. This has been made possible by the
Department of Commerce's Office of Economic Conversion Information (OECI)
through the use of their existing defense downsizing and conversion
information clearinghouse. OECI is a collaborative effort of the Economic
Development Administration (EDA) and the Economic and Statistics
Administration (ESA) within the U.S. Department of Commerce and the Office of
Economic Adjustment at the Department of Defense. Effective September 18,
1995, the Office of Worker and Community Transition made available to the
public its program documentation and other informational materials through its
own library in OECI's existing clearinghouse. The Information Exchange can be
accessed through the following ways: A Home Page on the Internet; an
electronic bulletin board system; CD-ROM; an automated fax system; an "800"
operator; and regular mail. If you have a World Wide Web client, like Mosaic
or Netscape, you can access the Office of Worker and Community Transition Home
Page by pointing to the Uniform Resource Locator (URL):
http://www.stat-usa.gov/owct.html. A User's Guide will be mailed soon to
assist you in accessing the Information Exchange.
DEPARTMENT OF ENERGY M&O CONTRACTOR EMPLOYMENT
The attached table documents M&O contractor employment reductions that have
taken place, since September 30, 1994, or are anticipated to be completed by
the end of the FY 1995 at selected sites. The table illustrates that more
than 15,000 M&O contractor separations will have taken place through FY 1995
with only approximately 20% of separated workers leaving involuntarily. An
aggregate figure for expected subcontractor reductions at selected sites is
also included. All of the subcontractor separations are involuntary.
Office of Worker and Community Transition Contacts
Director: Bob DeGrasse.................................. 202-586-7550, FAX
586-8403
Deputy Director: Steve Marlo............................ 202-586-0756, FAX
586-8403
Program Communications: Pat Parizzi...................... 202-586-7550, FAX
586-8403
Worker Transition:
Terry Freese....................................... 202-586-5907, FAX
586-8403
Lew Waters......................................... 202-586-4010, FAX
586-1540
Work Force Planning: Deborah Swichkow................... 202-586-0876, FAX
586-8403
Labor Relations:
Lyle Brown......................................... 202-586-0431, FAX
586-1540
Kathy Skrabut...................................... 202-586-0904, FAX
586-8403
Deborah Sullivan................................... 202-586-0452, FAX
586-1540
Community Transition:
Bob Baney.......................................... 202-586-3751, FAX
586-1540
Mike Mescher....................................... 202-586-3924, FAX
586-1540
Deborah Swichkow................................... 202-586-0876, FAX
586-8403
Public Participation: Laurel Smith...................... 202-586-4091, FAX
586-8403
Work Force Restructuring Field Contacts
Felix Ortiz, Albuquerque Operations Office............... 505-845-4207, FAX
845-4715
Elaine Kocolowski, Chicago Operations Office............. 708-252-2334, FAX
252-2919
Luella Bennett, Idaho Operations Office.................. 208-526-1913, FAX
526-5969
Bob Agonia, Nevada Operations Office..................... 702-295-1005, FAX
295-1876
Bill Truex, Oak Ridge Operations Office.................. 615-576-0662, FAX
576-6964
Harry Printz, Oakland Operations Office.................. 510-637-1829, FAX
637-2008
Ken Briggs, Ohio Field Office............................ 513-865-4267, FAX
865-4312
Dom Sansotta, Richland Operations Office................. 509-376-7221, FAX
376-5335
Lenora Lewis, Rocky Flats Office......................... 303-966-4263, FAX
966-3321
Dave Hepner, Savannah River Operations Office............ 803-725-1206, FAX
725-5968
Gil Gilyard, Savannah River Operations Office............ 803-725-1544, FAX
725-7631
Pat Lillard, Kansas City Area Office..................... 816-997-3348, FAX
997-5059
Alan Goetz, Pinellas Area Office......................... 813-541-8114, FAX
541-8370
Gene Gillespie, Portsmouth Site Office................... 614-897-2001, FAX
897-2982
Jimmie Hodges, Paducah Site Office....................... 502-441-6800, FAX
441-6801
ETEC - Energy Technology
Engineering Center
Bonny Matheson-Capobianco, Chair
Los Angeles Community Reuse Organization
c/o Valley Industry and Commerce
Association
21600 Oxnard St., Suite 410
Woodland Hills, CA 91367
(818) 888-2228
(818) 716-2780 (FAX)
HANFORD
Linda Hymas
TRIDEC
901 N. Colorado St.
Kennewick, WA 99336
(509) 736-0629
(509) 735-6609 (FAX)
IDAHO
Dan Cudaback
Eastern Idaho Economic Development Council
591 Park Ave., Suite 302
Idaho Falls, ID 83402
(208) 522-2014
(208) 522-3824 (FAX)
LOS ALAMOS
Jim Greenwood, Chairman
Los Alamos County Council
Los Alamos Economic Development Corp
P.O. Box 715
Los Alamos, NM 87544
(505) 662-0001
(505) 662-0099 (FAX)
MOUND
Mike Grauwelman
MMCIC
P.O. Box 232
Miamisburg, OH 45343-0232
(513) 865-3921
(513) 865-4431 (FAX)
NEVADA
Tim Carlson, Executive Director
State of Nevada Commission on Economic
Development
555 East Washington, Suite 5400
Las Vegas, NV 89101
(702) 486-2700
(702) 486-2701 (FAX)
OAK RIDGE
Tom Rogers, President
East Tennessee Economic Council
1400 Oak Ridge Turnpike
Oak Ridge, TN 37830
(615) 483-1321
(615) 483-1678 (FAX)
OXNARD
Steve Kinney
President, Greater Oxnard Economic
Development Corporation
711 South "A" Street
Oxnard, CA 93030
(805) 385-7444
(805) 385-7452 (FAX)
PINELLAS
Andrew H. Hines
Pinellas Plant CRO
Triangle Consulting
150 Second Avenue, North
Suite 1600
St. Petersburg, FL 33701
(813) 894-1100
(813) 822-0914 (FAX)
PORTSMOUTH
Steve Carter, Economic Development Director
Ohio Valley Region Development
Commission
740 2nd St., Room 102
Portsmouth, OH 45662
(614) 354-7795
(614) 353-6353 (FAX)
ROCKY FLATS
DeAnne Butterfield, Executive Director
Rocky Flats Local Impacts Initiative
5460 Ward Rd., Suite 205
Arvada, CO 80002
(303) 940-6090
(303) 940-6088 (FAX)
SAVANNAH RIVER
Lewis Attardo, Executive Director
Savannah River Regional Diversification
Initiative
P.O. Box 3077
Aiken, SC 29802
(803) 593-9231, ext. 1403
(803) 593-4296 (FAX)
SIGN-UP FORM
OFFICE OF WORKER AND COMMUNITY TRANSITION
FOCUS GROUPS
Name:
Address:
City:
State:
Zip:
Phone:
Fax:
E-mail:
Proposed Focus Groups
o Process Improvement and Revision of Interim Planning Guidance for
Contractor
Work Force Restructuring
o Guidance for Support of Community Transition Activities
o Reuse of Personal and Real Property
o Public Participation in Decision-Making
o Workshop Planning
o Contract Reform and Labor Interests
Suggestions for other Focus Groups
o
o
Please fax or mail your response to:
U.S. Department of Energy
Attn: Laurel Smith
Office of Worker and Community Transition, WT-1
Room 4B-172
1000 Independence Avenue, S.W.
Washington, D.C. 20585
Fax: 202-586-8403