OFFICE OF WORKER AND COMMUNITY TRANSITION

PROGRAM UPDATE

January - February 1996

WORKER AND COMMUNITY TRANSITION WORKSHOP

The Office of Worker and Community Transition held its fourth National Stakeholders' Workshop on March 13-15, 1996, at the Radisson Hotel Atlanta in Atlanta, Georgia. With the assistance of a planning committee composed of stakeholders, contractors, and Departmental employees, a draft workshop agenda was prepared and made available on both the Office of Worker and Community Transition Electronic Bulletin Board and on the Internet Home Page.

Prior to the Workshop, a DOE Employee Session was held on March 12 to discuss the issues and challenges identified at the last stakeholders' meeting in Albuquerque, New Mexico. During both activities, we worked together on resolving issues that are critical to the future success of worker and community transition activities.

A Meeting Summary Report from the Workshop will be developed and mailed to all participants in May, 1996. For those unable to attend the Workshop but are interested in receiving a copy of the report, please call Laurel Smith at 202-586-4091.

WORK FORCE RESTRUCTURING PLANS

REVISED INTERIM PLANNING GUIDANCE FOR CONTRACTOR WORK FORCE RESTRUCTURING RELEASED FOR COMMENT

On February 1, 1996, the Department's Interim Planning Guidance for Contractor Work Force Restructuring was approved for publication in the Federal Register. This guidance contains revisions and technical corrections to the document originally distributed on April 5, 1995. The Office intends to revise this interim guidance from time-to-time as warranted, based on comments received through notice and publication in the Federal Register, and other stakeholder comments and consultation.

It replaces guidelines issued by the Task Force on Worker and Community Transition on March 24, 1994. It is a product of the Department's experience over the past three years, and an extensive process of stakeholder and public involvement in shaping our worker and community transition policies. This process included national stakeholder meetings on June 11, 1993, November 15 and 16, 1994, April 20 and 21, and September 13-15, 1995. Comments were solicited from the public on a report issued by Under Secretary Charles B. Curtis on August 24, 1994. Comments were also solicited on earlier versions of this guidance issued on April 22, 1993 and March 24, 1994.

Except where otherwise noted, this guidance is not prescriptive. Cognizant field organizations have responsibility for planning work force restructuring. The Department's field organizations are in the best position to conduct full consultation with affected stakeholders on these plans and to understand the unique needs of work force restructuring at field facilities.

The Guidance became effective on March 5, 1996, the date of publication in the Federal Register.

APPROVAL OF THE LAWRENCE BERKELEY NATIONAL LABORATORY WORK FORCE RESTRUCTURING PLAN

On February 9, 1996, the Secretary of Energy approved transmittal of the Lawrence Berkeley National Laboratory Fiscal Year (FY) 1995-96 Work Force Restructuring Plan to the United States Congress.

On June 30, 1995, the Oakland Operations Office announced an employment reduction for the laboratory of 150 positions by the end of the fiscal year. On July 28, 1995, approval was provided to exercise authority contained in the contract with the University of California that allows the Laboratory to offer severance pay to Lawrence Berkeley employees who volunteer to separate, if by volunteering they reduced the necessity for an involuntary separation. A total of 26 employees were accepted for voluntary separation under this program. An additional 39 reductions were achieved through attrition.

As a result of the anticipated level of voluntary separation, approval was provided to the request of the Manager of the Oakland Operations Office to issue involuntary separation notices to up to approximately 100 employees. Actual layoffs to date have been 111. The laboratory began issuing notices of involuntary separation on August 16, 1995.

All involuntarily separated employees will receive regular contract severance and be eligible for relocation, training and outplacement assistance. Qualified involuntarily separated workers will be eligible for preference in hiring. Consistent with University of California policy, Displaced Worker Medical Benefits will not be provided, but Consolidated Omnibus Reconciliation Act of 1986 (COBRA) coverage will be available. Average cost per voluntary separation under the Plan is estimated to be $28,000. Involuntary separations average cost is estimated to be $14,250. Overall cost of the Plan is estimated to be $1,912,000 or $12,660 per position eliminated, including attrition.

REPORT ON WORK FORCE RESTRUCTURING PLANS SUBMITTED TO CONGRESS

On February 8, 1996, the Secretary approved the Report on Work Force Restructuring Plans Completed During Fiscal Years 1993 and 1994 for submission to the United States Congress.

Section 3161(e)(2) of the National Defense Authorization Act for FY 1993 directs the Secretary to provide annual updates of approved work force restructuring plans that contain an evaluation of the implementation of the plan during the year preceding the report.

In order to better facilitate overall evaluation of work force restructuring activities, the Office of Worker and Community Transition, in conjunction with affected field and operations offices, prepared a comprehensive update of work force restructuring plans approved during Fiscal Years 1993 and 1994 for submission to the Congress.

The update documents that during this period the Department approved twelve plans covering ten sites. A total of 8,029 contractor employees were separated under these plans, of which 5,791 were permanent management and operating (M&O) employees.

The Department successfully met the objective of section 3161 to minimize layoffs through the voluntary separation of 79 percent of permanent M&O employees. In achieving these results, 1,090 employees accepted early retirement offers, and 2,827 accepted voluntary separation incentive packages. An additional 632 M&O employees voluntarily separated through attrition, bringing the total voluntary separations to 4,459. Only 1,242 M&O employees were involuntarily separated.

The cost of implementing these plans has been less than originally forecast, with an aggregate average cost for the 8,029 affected workers of $20,597. The estimated annual recurring savings resulting from these separations is in excess of $1 billion.

Based on surveys of displaced workers, 66 percent expressed satisfaction with the treatment they received during work force restructuring. Approximately 64 percent were doing what they intended to do (retire, go to school, secure new employment) after separation.

The update identifies areas where improvements may be made including earlier communication of plan provisions and demonstration that stakeholder opinions were considered in plan development. The Office is taking steps to improve the work force restructuring process through revisions to its internal guidance.

DRAFT HANFORD WORK FORCE RESTRUCTURING PLAN RELEASED FOR STAKEHOLDER REVIEW

On January 2, 1996, the Department of Energy approved the circulation of the draft Hanford Site Work Force Restructuring Plan Addendum for stakeholder review and comment. This addendum proposes modifications to the Hanford Site Work Force Restructuring Plan to reflect the most recent Interim Planning Guidance for Contractor Work Force Restructuring and to reflect stakeholder input since approval of the plan on February 6, 1995. A final draft of the addendum to cover potential future work force restructuring at the site will be submitted for approval subsequent to stakeholder review and comment.

DRAFT IDAHO WORK FORCE RESTRUCTURING PLAN RELEASED FOR STAKEHOLDER REVIEW

On December 21, 1995, the Department of Energy released the final draft of the Idaho Operations Office FY 1995-1997 Work Force Restructuring Plan for stakeholder review and comment. The comment period extended through January, 1996. After consideration of stakeholder comments, a proposed final plan has been submitted by the field office for Secretarial approval and transmission to Congress.

WORK FORCE RESTRUCTURING ANNOUNCEMENTS

POTENTIAL WORK FORCE REDUCTION ANNOUNCED AT THE STRATEGIC PETROLEUM RESERVE IN LOUISIANA

On January 31, 1996, the Department of Energy approved the request for reductions in force for an estimated 27 employees of Tucker and Associates at the Strategic Petroleum Reserve in New Orleans, Louisiana. These reductions are anticipated to coincide with the transition to a new support services contractor in May, 1996.

The request includes an enhanced separation program consisting of 6 weeks pay for qualified employees, 2 weeks of which is granted in lieu of notice. Outplacement assistance will be available to employees. The estimated total cost of the program is $190,000.

VOLUNTARY SEPARATION APPROVALS

VOLUNTARY SEPARATION PROGRAM REOPENED AT HANFORD

On January 11, 1996, the Department of Energy announced an additional 300-500 anticipated work force reductions at Hanford, Washington. These reductions are required to improve the cost effectiveness and efficiency of operations and to respond to Congressionally mandated reductions in the FY 1996 budget.

In February 1995, DOE announced the need to reduce the work force by 4,774 positions during FY 1995 and 1996. To date, approximately 4,350 job reductions have occurred. Needed restructuring efforts within Westinghouse Hanford Company and its subcontractors, BCS Richland, Inc., and ICF Kaiser Hanford, are expected to fill the remaining 450 reductions. To this end, the contractor announced the offering of a Voluntary Reduction of Force (VROF) program to meet these needs. The VROF program was previously approved as part of the FY 1995 Hanford Work Force Restructuring Plan. A total of approximately 255 employees were accepted for voluntary separation under this program.

When considering reengineering and the effects of the reduced FY 1996 budget, there is an additional need to reduce Hanford's work force by another 300 to 500 positions during FY 1996. This could increase total reductions at the site since October 1, 1994, to 5,100 to 5,300. Although future impacts could possibly alter this projection, it is the best available at this time. DOE-Richland is currently working with its contractors to determine what separation programs will be implemented to most effectively accomplish these reductions.

INVOLUNTARY SEPARATION ANNOUNCEMENTS

INVOLUNTARY SEPARATIONS ANNOUNCED AT THE NATIONAL RENEWABLE ENERGY LABORATORY IN GOLDEN, COLORADO

On February 7, 1996 approval was granted to issue 60-day notices of involuntary separation to approximately 61 employees of the National Renewable Energy Laboratory. These separations are part of an overall reduction of 226 positions at the Laboratory. This is an increase from the estimate of 97 positions originally announced on November 2, 1995 and the total of approximately 160 estimated in December. The increase is due to final allocation of a 31 percent total budget reduction at the Laboratory. These separations are estimated to result in a net payroll savings in FY 1997 of approximately $5.6 million.

A significant portion of the adverse impact of these work force reductions has been mitigated by a voluntary separation incentive program that has resulted in the acceptance of 165 volunteers. The issuing of these notices of involuntary separation will complete anticipated work force reductions for Fiscal Year 1996 and help to address widespread concerns at the site about the prospect of far larger reductions at the Laboratory.

Involuntarily separated employees will receive two weeks' separation pay if employed by the Laboratory less than one year, four weeks' pay if employed between one and four years, and one week's pay per year of Laboratory service, up to a maximum of 18 weeks, for those employed more than four years at the Laboratory. They will also have the opportunity, if qualified, to participate in the Displaced Worker Medical Program, and be eligible for up to $10,000 in educational assistance over two years. Career Transition and Employee Assistance Program benefits will also be made available.

WORK FORCE PLANNING ACTIVITIES

During January and February, a number of significant accomplishments were completed in the areas of work force planning. The Requirements Subcommittee, consisting of representatives from DOE Headquarters, field offices, contractors, and unions, finalized the requirements to be included in the Work Force Information System (WFIS) at an aggregate level, consisting of five areas: Equal Employment Opportunity (EEO); Common Occupation Classification System (COCS); Budget and Reporting Codes; Human Resources; Work Force Restructuring; and Labor Relations - based on reports currently required by the Department. An interim final draft of the data elements to support these requirements were also developed.

On January 18, 1996, the Work Force Planning Board of Directors met and agreed to adopt the COCS as the Department-wide job classification system. At the Board's next meeting (end of April), the level of COCS reporting to Headquarters will be determined (89 job categories vs. 9-family level). If you would like additional information on work force planning activities, please contact Debby Swichkow at 202-586-0876.

LABOR RELATIONS

POLICY ISSUES

Oil, Chemical, and Atomic Workers (OCAW) Lawsuit - Discussions between representatives of OCAW, Lockheed Idaho Technologies Corporation (LITCO), and DOE continue on the "make-buy" cost model. Talks are underway between the Building and Construction Trades Department of the AFL-CIO, OCAW, LITCO, and DOE on the issue of allocation of work. Parties are optimistic about the progress made on both fronts.

Davis-Bacon Act - The Office of Worker and Community Transition has been working with the Office of Procurement Policy to develop an Acquisition Letter to contracting officers as a satisfactory method of providing a long-term solution to questions raised by the inadvertent withdrawal of certain Department of Energy acquisition regulations in October, 1995.

CONTRACT NEGOTIATIONS

The following is a list of collective bargaining agreements scheduled to be negotiated in the second quarter of calendar year 1996:

COMMUNITY TRANSITION ACTIVITIES

FUNDING APPROVED FOR THE NATIONAL CONVERSION PILOT PROGRAM

On February 9, 1996, the Department of Energy approved providing $10 million for the National Conversion Pilot Program (NCPP) at the Rocky Flats Environmental Technology Site. This pilot program has been exploring the feasibility of converting some buildings at the facility to private use. The decision will continue funding through 1996 for this innovative initiative to reduce environmental costs for waste storage and management, while at the same time maintaining DOE's commitment to cleanup at Rocky Flats.

Approval of the funding represents a significant step forward in DOE's efforts to convert facilities to private use according to Secretary of Energy Hazel O'Leary. "Continued funding for the National Conversion Pilot Project is an investment in the highly-skilled men and women who served our Nation so well at Rocky Flats. It is an investment in the economic growth of the greater-Denver community and it is an investment in innovatively achieving this Department's cleanup mission at Rocky Flats and elsewhere," O'Leary said.

The privately-run National Conversion Pilot Project, originally authorized by Secretary O'Leary in December 1993, is divided into three stages: planning, cleanup, and private manufacturing. The program is currently in Stage II, or the cleanup phase, which includes four former production buildings at Rocky Flats. The four buildings historically housed depleted uranium, stainless steel and beryllium for manufacturing and metallurgical operations. The NCPP action is carried out under authority contained in the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), also known as the Superfund Act. The remedial action was developed cooperatively by the DOE, Environmental Protection Agency, Colorado Department of Public Health and Environment, and the project contractor, Manufacturing Sciences Corporation. Stage III of the project is envisioned to manufacture new waste containers from recycled scrap metals.

During 1995, 92,000 square feet of floor, wall, and ceiling surfaces and 13 pieces of equipment in Building 883 were successfully decontaminated and cleaned for future use. In addition, the NCPP's aggressive waste management effort reduced low-level waste generation by 53 percent, and low-level mixed waste by 70 percent over original projections. The NCPP has successfully completed permitting requirements and developed a Radiological Protection Program that allows cleanup and decontamination activities to proceed in the four buildings at Rocky Flats.

Oversight for the project is being provided by a steering committee consisting of representatives from DOE and EPA, State government, Kaiser-Hill, the site contractor, and community participants working through the Rocky Flats Local Impacts Initiative.

"The 1996 funding," according to Secretary O'Leary, "will allow the NCPP to continue cleanup efforts at Rocky Flats and prepare the buildings for the manufacturing stage of the project. This project," the Secretary added, "demonstrates that DOE can successfully convert facilities to private use, while saving tax dollars and helping displaced workers find jobs where their skills can be fully utilized."

COMMUNITY TRANSITION FUNDING APPROVED FOR ALBUQUERQUE OPERATIONS OFFICE

On February 20, 1996, the Department of Energy approved the transfer of funds to the Albuquerque Operations Office for community assistance, and the authority to transfer funds for work force restructuring at Ross Aviation. An additional $2.8 million will be provided on the March, 1996 financial plan to be utilized for community assistance efforts underway in Northern New Mexico. These funds are to be combined with $2.2 million in funding previously provided to fulfill the commitment to provide up to $5 million for community assistance purposes in Northern New Mexico during FY 1996. Plans for allocation of these funds are to be developed in coordination with the Northern New Mexico Defense Adjustment Task Force.

This approval also provides authority to transfer $1,074,231 from funds previously allocated to the Kansas City site to pay for voluntary separation incentives for up to 50 employees at Ross Aviation in Los Alamos.

NEW JOBS CREATED AT MOUND FLEXIBLE CIRCUITS IN MIAMISBURG, OHIO

On Monday, February 19, 1996, representatives from the Mound Plant in Miamisburg, Ohio announced that Mound Flexible Circuits would lease space at the Mound Plant and create 125 new jobs at the facility during the next year. This firm is employing technology developed by the Department for production of nuclear weapon detonator cables to produce flexible circuits for computer hard disk drives. The company believes this technology will make them competitive in a highly-competitive commercial market. About 25 jobs will be created immediately, adding to the 175 jobs and 18 businesses that have already been created and/or sited at this former nuclear weapons facility.

PUBLIC PARTICIPATION ACTIVITIES

OFFICE OF WORKER AND COMMUNITY TRANSITION COMMENT BOARD ON THE HOME PAGE

The Office of Worker and Community Transition has established a Comment Board on its Internet Home Page. The purpose of this board is to list major issues identified through stakeholder workshops, focus groups, individual identification, as well as other means, and to provide you with an opportunity to comment on these issues. We will use this forum to identify additional issues and to ultimately develop a comment response document which will be posted on-line by April, 1996.

Major issues were identified in the following areas at the September 1995 National Stakeholder Workshop: Work Force Restructuring, Work Force Planning, Contract Reform and Labor Interests, and Community Transition. These issues have been posted on the Comment Board and are available for comment. All comments will be submitted on-line and posted for others to view.

You can reach the Office of Worker and Community Transition Home Page at the following Web address: http://www.stat-usa.gov/owct.html. If you would like to receive a copy of the Information Exchange User's Guide, please contact Laurel Smith at (202) 586-4091.

DEPARTMENT OF ENERGY PRIME CONTRACTOR EMPLOYMENT

The attached table documents prime contractor employment reductions that took place from the beginning of FY 1994-1996 at all sites. The table illustrates that more than 18,000 prime contractor separations that have taken place since the beginning of FY 1994 with only approximately 30% of separated workers leaving involuntarily. These reductions are slightly higher than the projections of February, 1995 that were released with the FY 1996 budget. An aggregate figure for subcontractor reductions at all sites is also included (see column entitled "Other Changes To Date"). All of the subcontractor separations are involuntary.