OFFICE OF WORKER AND COMMUNITY TRANSITION

PROGRAM UPDATE

January - March 1998

NEW WEBSITE UNVEILED FOR THE OFFICE OF WORKER AND COMMUNITY TRANSITION

In March 1998, the Office of Worker and Community Transition brought its website in-house, making many improvements to the site in the process. The new address is www.wct.doe.gov. One of the many face-lifts for the site includes a section on Key Program Metrics which will be updated routinely. Due to the fact that the site is managed directly by this Office, users can expect information to be more up-to-date than on the previous site.

All public documents related to the Office can be found on the website, and as a result we are streamlining the Program Update by removing attachments and contact lists. In the event that Internet access cannot be obtained or you would like a hard copy, these items and other public documents can be requested on the form attached to the back of this Program Update.

 

WORK FORCE RESTRUCTURING ACTIONS

WORK FORCE RESTRUCTURING ANNOUNCED AT HANFORD

On January 8, 1998, the Project Hanford Management Contract (PHMC) team conducted a detailed work force analysis of its skills mix requirements for Fiscal Year 1998. That analysis has identified up to 400 positions that may be reduced during the year. Factors driving work force restructuring include implementation of a number of planned efficiency initiatives, completion of projects, transfer of work scope to new entities, and adjustments in skill mix requirements.

Consistent with the objectives of section 3161 of the National Defense Authorization Act for Fiscal Year 1993, the contractor team will work to mitigate the impacts of its restructuring by attempting to place impacted employees in other open positions based on skills assessment, and careful management of employee attrition. In addition, some hiring to meet skills mix needs is expected to take place. As a result, it is expected that net overall employment of the contractor team will decline by less than 400 positions. Separated workers will receive benefits provided in the current Hanford Site Work Force Restructuring Plan.

An announcement was previously made regarding expected work force changes for Bechtel Corporation and other contractors at Hanford for Fiscal Year 1998 involving up to 170 positions. This would bring total work force changes at the site during the fiscal year to up to 570 positions.

COMMUNITY COLLEGE NETWORK (C2NET) MEETING HELD IN ALBUQUERQUE, NEW MEXICO

On January 15, 1998, representatives from Sandia and Los Alamos National Laboratories, labor unions, community colleges, the Albuquerque Technical Vocational Institute, and the University of New Mexico, met with Department of Energy representatives from Albuquerque and Headquarters to discuss issues involving contractor work force planning, changes in skills mix, and future training needs. Information, ideas and practical tools were shared to handle work force planning, and provide comparable and less costly options to meet training requirements. This is the third in a series of site visits that will be made this year. It is anticipated that an Integrated Training Initiative involving the labor unions, DOE, and contractors will be necessary in order to successfully address future work force issues.

ANNUAL REPORT ON CONTRACTOR WORK FORCE RESTRUCTURING FOR FISCAL YEAR 1997 RELEASED

In March 1998, the Office of Worker and Community Transition released its Annual Report on Contractor Work Force Restructuring for Fiscal Year 1997. The report responds to the requirement of section 3161 to report to Congress annually on the results of work force restructuring. It covers activities in Fiscal Year 1997 and serves to update Congress and the public on the outcomes of work force restructuring and community transition.

The report also fulfills the requirements of section 3157 of the National Defense Authorization Act for Fiscal Year 1995 and section 5153 of the National Defense Authorization Act for Fiscal Year 1998. Section 3157 requires an annual report to Congress on Economic Redevelopment and Conversion Activities Resulting from Reconfiguration of Department of Energy Nuclear Weapons Complex. Section 3153 requires a semi-annual report on local impact assistance provided by the Department to the communities.

FY 1997 marks the fifth successive year of significant work force restructuring at Department facilities. These work force restructuring activities have resulted in yearly savings of over $2.8 billion to the United States Government through the orderly separation of more than 43,000 employees. Economic assistance to communities affected by this dramatic reduction in the Department's contractor employment has resulted in the creation of over 11,400 private sector jobs at a cost of less than $10,400 per job created -- which compares favorably with the Department of Defense and other economic development initiatives.

The Report can be viewed at the Office's website at www.wct.doe.gov or copies can be requested from the office (see form at back).

REPORT ON THE NEED AND JUSTIFICATION FOR THE WORKER AND COMMUNITY TRANSITION PROGRAM RELEASED

In March 1998, the Department of Energy transmitted to the U.S. Congress a report entitled the Need and Justification for the Worker and Community Transition Program. The Conference Report accompanying the Fiscal Year 1998 Energy and Water Appropriations Act directs the Department to provide a report by March 30, 1998, regarding the future need and justification for the Worker and Community Transition Program.

The Need and Justification Report describes the program mission, lays out program objectives and justification, reviews program accomplishments and performance benchmarking, and discusses Fiscal Year 1998 activities and future requirements.

The report describes the positive role that the program provides for assuring the appropriate skill mix of the work force, enhancing productivity of the remaining workers, minimizing legal challenges, and facilitating more efficient contracting mechanisms. The report estimates that 3,000 to 5,000 work force separations are expected to occur in each of the next three years (1998-2000), resulting in continued social and economic impacts at several defense sites. We conclude that managing these changes will require consistent Departmental guidance and oversight, which did not exist prior to creation of the Office of Worker and Community Transition, and that maintaining the program is a cost-effective use of the taxpayers' money.

The Report can be viewed at the Office's website at www.wct.doe.gov or copies can be requested from the office (see form at back).

COMMUNITY TRANSITION ACTIVITIES

COMMUNITY TRANSITION FUNDING APPROVED FOR HANFORD

On January 21, 1998, the Department of Energy announced a $2.85 million grant to help ease impacts of downsizing at the Hanford Plant. The grant is being awarded to the local community reuse organization, the Tri-City Industrial Development Council (TRIDEC). A representative from TRIDEC stated that this money will help create approximately 1,000 new jobs for displaced Hanford workers and other community members.

The prime contractor work force at the Site has been reduced from approximately 17,000 in FY 1994 to 11,400 by the end of FY 1997. These cuts represent a 33 percent work force reduction.

"This important investment builds on the strengths of the Tri-Cities to secure high-skill, high-paying jobs in eastern Washington," said Under Secretary Moniz.

The grant makes the following projects possible: 1) marketing activities that will facilitate a pro-active business recruitment; 2) an entrepreneur support network; 3) training and/or retraining of displaced workers; 4) minority and women-owned business development programs; and 5) an enterprise group creation program that will recruit and organize displaced Hanford workers to form their own businesses and assist them to develop business plans and marketing strategies.

The Tri-City Industrial Development Council estimates that the above programs will create 1,000 new jobs for displaced workers, generate $40 million in economic benefits to the region, bring new businesses into the area, train 150 to 200 individuals, and obtain business assistance for many individuals interested in starting their own business.

NATIONAL COUNCIL FOR URBAN ECONOMIC DEVELOPMENT CONFERENCE HELD IN CINCINNATI

On February 19-20, 1998, thirty-nine people participated in a two-day Community Reuse Organization (CRO) leadership seminar hosted by the National Council for Urban Economic Development in Cincinnati, Ohio. Nine separate DOE sites were represented, including all of the sites in Ohio. Cincinnati was selected because of its convenience for attendees from the newest CROs in Fernald, Paducah, and Portsmouth.

The course introduced community leaders and DOE representatives to what the Department expects from economic development and the CROs. Speakers included Dan Cudaback, President of the Eastern Idaho Economic Development Council; Jeff Finkle, Executive Director of the Council for Urban Economic Development; Mike Grauwelman, President of the Miamisburg Mound Community Improvement Corporation; Ed Gilliland, Director of Technical Advisory Services for the Council for Urban Economic Development; Linda Milam, Mayor of the City of Idaho Falls; John Merwin, Director of Human Resources for Fluor Daniel Fernald; and Debby Swichkow, Deputy Director, Office of Worker and Community Transition.

Several attendees remarked that the case study sessions wrapping up the seminar were especially valuable. One attendee remarked, "...the last two sessions were exceptionally helpful because they brought the material together. Those that were unable to staff for all sessions missed that advantage." The other sessions had addressed Worker and Community Transition guidance, latest trends in economic development, community planning for work force downsizing, illustrations of strategic planning from other CROs, the leadership role of CRO board members, and proven organizational practices.

EFFORTS TO HELP CREATE NEW JOB OPPORTUNITIES IN SOUTHERN NEVADA GET $5 MILLION BOOST FROM THE DEPARTMENT OF ENERGY

On March 20, 1998, the Department of Energy announced $5 million in community transition funding to aid Nevadans affected by workforce restructuring at the Nevada Test Site (NTS). The grant to the NTS Development Corporation -- the local community reuse organization -- will help ease the impacts of downsizing at the Test Site and help create new job opportunities in the region.

With the end of the Cold War and the changing mission at the Nevada Test Site, the contractor work force there has been reduced by 58 percent, from approximately 5,500 in 1993 to 2,300 by the end of 1997.

"This important investment will build on the strengths of the Test Site to secure high-skill, high-paying jobs in Southern Nevada," said Secretary of Energy Federico Peņa. "In addition, the funds will allow creative uses of the Department's facilities and employees affected by downsizing in ways that create new job opportunities and diversifies the economic growth of the region."

The community transition grant will be used for five primary projects: 1) planning and development program that will identify projects or programs that will have a high potential for job creation in Southern Nevada; 2) a corporate relations program that will support new and emerging businesses; 3) a capital finance program that will loan money to firms which create high-value, long-term private sector jobs and expand and diversify the local economy; 4) an asset management program that will use the Nevada Test Site for the transfer of real, personal and intellectual property for economic development purposes; and 5) an administrative/operating fund that will provide management functions to effectively utilize resources and support the development of new and expanded businesses.

The grant will be administered over three years. Approximately $2 million will be awarded each of the first two years, and $1 million will be awarded the third and final year of the grant.

EFFORTS TO CREATE NEW JOBS IN SOUTHERN OHIO GET $6.5 MILLION BOOST FROM THE DEPARTMENT OF ENERGY

On March 20, 1998, the Department of Energy announced $6.5 million in community transition funding to aid Ohioans affected by reductions in defense-related activities at the Portsmouth Gaseous Diffusion Plant. The grant to the Southern Ohio Diversification Initiative -- the local community reuse organization -- will help create new job opportunities in the region and ease the impact of any future downsizing at the plant.

"This important investment will build on the strengths of the Portsmouth Plant to secure high-skill, high-paying jobs in south central Ohio," said Secretary of Energy Federico Peņa. "These funds will help diversify the regional economy, create jobs and improve resources for economic development throughout the area."

In 1994, the Energy Department announced that a loss of more than 750 jobs were possible as a result of reductions in defense-related activities. In 1995, 112 employees were voluntarily separated; in 1997, 119 layoffs were announced with the prospect of up to 250 more layoffs over the next two years due to the completion of the highly enriched uranium (HEU) removal operations. The development of new technologies, together with the agreement between the United States and Russia to convert nuclear warheads into fuel for commercial nuclear power plants, have created further uncertainty over potential reductions at the Portsmouth Plant.

Communities surrounding the plant have long suffered high unemployment, with rates double the state average. The plant is the largest employer in a 12-county area of southern Ohio.

"We are extremely pleased that the Department has approved this funding for our area," said Eugene W. Gillespie, Portsmouth Site Manager for the Department of Energy. "We know there will be additional downsizing with the completion of the HEU program. We need to move forward with diversifying the region so people have options other than relocating from the area to find employment."

The community transition grant from DOE will be used to implement strategies designed to diversify the local economy, create jobs and improve resources for economic development. The strategies include: 1) industrial park development that will create high-quality, high-paying jobs; 2) matching education and training programs with industry needs by conducting a work force assessment to identify skill gaps and train a skilled work force; and 3) improve financial and technical assistance to businesses through assessment of regional resources.

APPLIED PROCESS AND ENGINEERING LABORATORY OPENING AT HANFORD

On March 26, 1998, the Applied Process and Engineering Laboratory (APEL) opened giving engineers and entrepreneurs a place where they can turn promising technology into marketable products. Tri-City leaders are hoping APEL will be the bridge that is needed to take technology developed by the Hanford scientific community and turn it into products that can be made and marketed by Tri-City businesses.

Two companies have already moved into what was an unused warehouse of the Washington Public Power Supply System (WPPSS). The 90,000 square foot warehouse was remodeled into laboratories and testing space. A room designed for storing hazardous wastes and chemicals includes safety showers and explosion-proof lighting. But one of the most popular features of the new lab is one that wasn't originally designed into the building. Tenants can take advantage of the umbrella Research, Development and Demonstration Permit. This should decrease the time and cost for the permitting process if done by each company individually.

The remodeling of the WPPSS warehouse was made possible through a grant from the Department of Energy's Office of Worker and Community Transition that was matched by WPPSS, the Port of Benton, the City of Richland, Washington State University and Battelle.

ADVANCE NOTICE OF PROPOSED RULEMAKING

In March 1998, an advance notice of Proposed Rulemaking for Community Transition activities was distributed to the Community Reuse Organizations and Department of Energy Community Transition representatives for review and comment. Comments submitted by the Community Reuse Organizations and the Department of Energy Community Transition representatives have been incorporated into an advance notice of Proposed Rulemaking for Community Transition activities. There will be a formal opportunity to provide comments to the Proposed Rulemaking once it is published in the Federal Register this summer.

DEPARTMENT OF ENERGY AND U.S. ENVIRONMENTAL PROTECTION AGENCY POLICY ON LEASING OF REAL PROPERTY UNDER 42 U.S.C. 7256 (HALL AMENDMENT)

In July 1997, the Office of Worker and Community Transition convened an interagency working group in order to provide standard notification and consultation procedures with EPA for leasing real property at DOE sites on the National Priority List. The policy incorporates comments received from DOE Headquarters and field offices and EPA Headquarters and regional offices, on an earlier draft. A joint memorandum supporting the policy will be distributed in the Spring 1998.

 

PUBLIC OUTREACH ACTIVITIES

SIXTH NATIONAL STAKEHOLDER'S WORKSHOP TO BE HELD IN ALEXANDRIA, VIRGINIA

The Office of Worker and Community Transition plans to hold the sixth National Stakeholder's Workshop on June 17-18, 1998 at the Ramada Plaza Hotel Old-Town in Alexandria, Virginia. This meeting will address the progress made on the issues and challenges identified at the last stakeholder's meeting in Oakland, California on April 9-11, 1997. We will also cover the full range of the Department's work force issues and will seek answers to the inherent challenges of simultaneously implementing the Department's post Cold-War mission, work force restructuring guidance, contract reform objectives, asset disposition, performance-based management requirements, and business process improvement policies. The format of the meeting will focus on discussions of best practices and lessons learned in the process of obtaining an effective and efficient work force. Prior to the meeting, on June 16, 1998, there will be a half-day meeting for Department of Energy employees.

A block of rooms have been reserved at the government per diem rate of $126 (all inclusive) for singles and doubles. For those interested in arriving early or staying over, this rate will be available from June 13-21. Please call the toll-free number at (800) 2RAMADA (800-272-6232) and mention that you are with the Department of Energy workshop under Group #CG0822 to reserve a room at that rate. This room rate will be guaranteed until Monday, May 25, 1998, after that time the room rate is subject to availability. The Washington, D.C. area is very busy at this time of year, so we urge you to call early to make your room reservations. An agenda and general information about the workshop will be mailed by the end of April.

The Office of Worker and Community Transition is in the process of forming a planning committee to assist in the development of the meeting agenda. This committee will convene in mid-April via teleconference to discuss the meeting format and topics. If you would like additional information about the workshop, please contact Laurel Smith at (202) 586-4091.

 

ASSET MANAGEMENT

ASSET SALES/LEASES

To date, $30.77 million has been deposited in the Department of Energy's asset sales account at the Department of Treasury. An additional $1.57 million in asset sales and leases are pending completion and verification prior to deposit in the appropriate accounts at Treasury.

 

LABOR RELATIONS

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 1998:

Site Union Type of Employees
Fernald FATLC Operating Engineers
Hanford IGUA, Local 21 Guards


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