OFFICE OF WORKER AND COMMUNITY TRANSITION

PROGRAM UPDATE

January-February 1997

WORK FORCE RESTRUCTURING ACTIONS

WORK FORCE RESTRUCTURING ANNOUNCED AT SAVANNAH RIVER SITE

On January 9, 1997, the Department of Energy announced the need to restructure the contractor work force at the Savannah River Site, as a result of a comprehensive assessment of skills requirements based on final work and budget allocations for FY 1997. Up to 663 positions were identified for reduction, consisting of approximately 578 positions with Westinghouse Savannah River Company (including construction craft and subcontractor employees) and 36 positions with Savannah River Operations Office support service and other contractor positions.

On March 19, 1996, the site announced that approximately 1,950 positions would need to be reduced at the site by September 30, 1996, with an additional 500-800 reductions in early FY 1997, for total of at least 2,450 reductions in the work force. In FY 1996, the site contractor work force was reduced by approximately 1,200 positions through an enhanced retirement program, a voluntary separation incentive program, and attrition. The 663 reductions announced in January 1997 brought total reductions since FY 1996 to 1,863, which is 587 fewer than the lowest estimate made in March 1996.

The site also anticipates that requirements for up to 150 craft-related positions will end over the course of the fiscal year, as a result of the ebb and flow of construction work. Additional attrition will occur over the year and new hiring of up to 200 positions may be necessary in order to meet skills mix requirements.

In order to minimize the final number of involuntary separations, the site is actively pursuing opportunities to place potentially impacted employees in positions where vacancies exist to meet assigned work. No permanent employees of the integrated prime contractor identified for separation, including construction workers, were separated for at least 60 days after receiving notice. This will result in separations occurring in March 1997. Other employees will receive notice consistent with their relevant contracts. Non-construction permanent employees who receive notices will be assigned to the Savannah River Outplacement Assistance Center to provide immediate help in meeting their career transition objectives.

Separated employees will also receive severance payments as called for under their relevant contracts, and may be eligible for displaced worker medical benefits, as well as preference-in-hiring, education and relocation assistance. Eligibility for these benefits will be consistent with the provisions of the previously approved Savannah River Work Force Restructuring Plan with limited modifications which are being incorporated in an addendum to that Plan. This addendum was circulated for stakeholder comment during the spring of 1996, and is anticipated to be submitted to the Congress prior to separation of affected employees in March 1997.

ANNUAL REPORT ON CONTRACTOR WORK FORCE RESTRUCTURING PUBLISHED

On January 17, 1997, the Department of Energy issued its annual report to the U.S. Congress, Annual Report on Contractor Work Force Restructuring for Fiscal Years 1995 and 1996. The document shows that the Department's contractor work force restructuring activities have resulted in substantial budget savings while reducing the social and economic impacts to workers and communities brought about by mission changes and downsizing at 17 defense nuclear sites and 18 non-defense sites. The Report is available for viewing on the Office of Worker and Community Transition's Home Page.

WORK FORCE RESTRUCTURING ANNOUNCED AT THE MOUND SITE IN OHIO

On January 28, 1997, the Department of Energy announced that approximately 29 EG&G employees will be involuntarily separated at the Miamisburg Environmental Management Project at Mound. These reductions are the result of lower than expected participation in the voluntary separation incentive program which closed in September 1996.

It is anticipated that up to an additional approximately 20 positions could become excess prior to the revised schedule for contract transition beginning June 30, 1997. These reductions are within the overall reduction of up to approximately 600 positions previously announced at the site. Separated workers will receive benefits under the conditions included in the Mound Work Force Restructuring Plan, approved in July 1994.

WORK FORCE INTEGRATION TRAINING PILOT AT THE FERNALD SITE IN OHIO

On January 30, 1997, a one-day work force integration training meeting was held in Cincinnati, Ohio. The Fernald Site served as a pilot in demonstrating the advantages of integrating a cross-cutting approach to site-specific training.

Attendees participated in discussions led by representatives of local labor unions, Community Reuse Organizations, contractors and the local academic community. A key focus was the role of the Community College Network's (C²NET) curriculum development in supporting the training needs of the transitioning work force and the community's economic diversification opportunities. A training integration model was presented that includes a needs assessment of the work force, resources, delivery mechanisms and funding sources. This training model will be pilot tested at the Fernald Site. The integration concept was met with such success that this approach will be used in future C²NET site visits.

WORK FORCE RESTRUCTURING ANNOUNCED AT THE ROCKY FLATS ENVIRONMENTAL TECHNOLOGY SITE IN COLORADO

On February 3, 1997, the Department of Energy announced anticipated work force restructuring activities at the Rocky Flats Environmental Technology Site. These activities are part of an ongoing effort involving completion of projects, outsourcing of some functions, efficiency and productivity improvement measures and changes in the skills mix necessary to meet ongoing tasks. Based on an analysis to determine the work force composition needed to meet these activities, it is estimated is that up to 400 positions at the site could be affected--a portion of which is expected to take place this year. Based on current plans, ongoing restructuring at the site is expected to involve small, targeted adjustments rather than large-scale general reductions as in some previous restructurings.

The restructuring is expected to involve some activities which will be outsourced for performance by subcontractors. It is anticipated that many current Kaiser-Hill employees in these activities will be provided job offers by the outsourced subcontractors. There will be an ongoing effort to reassign personnel to meet changes in skills mix requirements, including appropriate retraining, as well as to manage attrition and new hiring consistent with the work force analysis.

Necessary work force reductions at Rocky Flats may be accomplished through a combination of voluntary separations and layoffs. Additional reductions may be accomplished through attrition. These activities will be conducted under the site's third work force restructuring plan which was released on December 6, 1996 in draft form for public and employee comment. No layoffs will take place under the new plan for at least 120 days. It is anticipated that the final plan will be forwarded to the U.S. Congress prior to any involuntary separations taking place.

DRAFT PANTEX WORK FORCE RESTRUCTURING PLAN CIRCULATED FOR COMMENT

On February 7, 1997, the Department of Energy announced that a draft Pantex Plant Work Force Restructuring Plan is being circulated for stakeholder review and comment. This Plan is being developed as a result of a need to immediately reduce up to approximately 350 positions at the Plant, and is also intended to cover potential future work force restructuring at Pantex. A voluntary separation incentive program was approved on December 6, 1996, to help minimize the need for involuntary separations, and its success has resulted in the expectation that there will be no involuntary separations at Pantex in this fiscal year.

After consideration of stakeholder comments, a proposed final Pantex Work Force Restructuring Plan will be submitted to the Department for review and transmission to the U.S. Congress by the Secretary of Energy.

COMMUNITY TRANSITION ACTIVITIES

APPROVAL FOR PUBLICATION OF POLICY AND PLANNING GUIDANCE FOR COMMUNITY TRANSITION ACTIVITIES IN THE FEDERAL REGISTER

On January 17, 1997, the Department of Energy approved the publication of Policy and Planning Guidance for Community Transition Activities in the Federal Register. The Office intends to revise this 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. This Guidance replaces guidelines first issued in a report by Under Secretary Charles B. Curtis, Report on the Department of Energy's Worker and Community Transition Program on August 24, 1994. It is a product of the Department's experience over the past 3 years, and an extensive process of stakeholder and public involvement in shaping our worker and community transition policies. The new Guidance also responds to the recommendations made by the General Accounting Office in their December 1995 report to the Secretary of Energy, "Energy Downsizing: Criteria for Community Assistance Needed." Except where otherwise noted, this Guidance is not prescriptive. Cognizant field organizations have responsibility for community transition activities. This Guidance will become effective on March 9, 1997, 30 days after publication in the Federal Register.

NATIONAL ELECTRONICS RECYCLING PILOT PROJECT

On January 28, 1997, staff from the Office of Worker and Community Transition met with representatives of DOE/Oak Ridge and the Community Reuse Organization of East Tennessee to discuss the development of a national pilot for recycled electronic equipment. The objective of the meeting was to develop a strategy to move the idea forward. Over the past several months, DOE has met with a number of companies interested in participating in the pilot as either operators, suppliers, purchasers of recycled products, or researchers in advanced technologies.

A meeting was held with Delta Airlines in Atlanta, Georgia, on January 31, 1997, to discuss potential involvement of the airline in the Oak Ridge Electronic Recycling Pilot Project. Delta Airlines expressed keen interest in the project and possible participation in a joint public-private sector endeavor.

LABOR RELATIONS

MEETING WITH BUILDING AND CONSTRUCTION TRADES, THE ATOMIC TRADES COUNCIL AND THE OIL, CHEMICAL AND ATOMIC WORKERS INTERNATIONAL UNION

On January 23, 1997, a meeting with representatives of the Building and Construction Trades, the Atomic Trades Council and the Oil, Chemical and Atomic Workers International Union was held in Oak Ridge, Tennessee, to discuss the Department's proposed contract with the BNFL consortium. This new contract will involve the clean-up of three buildings on the K-25 site for anticipated future use, the cost of which will be offset by the reprocessing of assets (primarily metals) contained in those buildings. Concerns of organized labor center around who will perform the various functions associated with the proposed contract. BNFL is committed to talk with all interested parties of organized labor in an effort to employ a qualified work force in an efficient manner.

CONTRACT NEGOTIATIONS

The following is a list of collective bargaining agreements that have been recently negotiated or are scheduled to be negotiated in the first quarter of calendar year 1997:

PUBLIC PARTICIPATION ACTIVITIES

FIFTH ANNUAL NATIONAL STAKEHOLDER WORKSHOP

The Department of Energy's (DOE) Office of Worker and Community Transition plans to hold its fifth National Stakeholders' Workshop on April 9-11, 1997, at the Oakland Marriott City Center in California. Please see the draft agenda for the latest changes. If you would like additional information either on the agenda or on the Workshop itself, please visit our Home Page or you may contact Laurel Smith at (202) 586-4091.

DEPARTMENT OF ENERGY PRIME CONTRACTOR EMPLOYMENT

COMMUNITY REUSE ORGANIZATIONS

FERNALD

David McWilliams, Chair
Fernald Community Research Organization
3371 Hamilton Cleves Road
Hamilton, OH 45013
(513) 738-0164
(513) 863-6250 (FAX)


HANFORD

Sean Stockard
TRIDEC
901 N. Colorado St.
Kennewick, WA 99336
(509) 735-1000, ext. 225
(509) 735-6609 (FAX)


IDAHO

Dan Cudaback
Eastern Idaho Economic
Development Council
683 N. Capital Ave.
Idaho Falls, ID 83402
(208) 522-2014
(208) 522-3824 (FAX)

LOS ALAMOS
Sid Singer, Chairman
Los Alamos Regional Development
1808 el Grancho
Los Alamos, NM 87544
(505) 662-5495
(505) 662-2088 (FAX)

MOUND

Mike Grauwelman
MMCIC
P.O. Box 232
Miamisburg, OH 45343-0232
(513) 865-3921
(513) 865-4431 (FAX)

NEVADA

Tim Carlson, President
NTS Development Corporation
2340 Paseo Del Prado
Suite D-108
Las Vegas, NV 89128
(702) 257-7900
(702) 257-7999 (FAX)

OAK RIDGE

Lawrence Young, Executive Director
Community Reuse Organization of East Tennessee
1400 Oak Ridge Turnpike
Oak Ridge, TN 37830
(423) 483-1321
(423) 483-1678 (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
Greg Simonton
Project Director
Southern Ohio Diversification Initiative
1864 Shyville Road
Piketon, OH 45661
614) 289-3654
614) 289-4591 (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 696
Aiken, SC 29802
(803) 593-9954 ext. 1409
(803) 593-4296 (FAX)