OFFICE OF WORKER AND COMMUNITY TRANSITION

PROGRAM UPDATE

July-August 1996

WORK FORCE RESTRUCTURING ANNOUNCEMENTS

WORK FORCE RESTRUCTURING AT OAK RIDGE NATIONAL LABORATORY IN TENNESSEE

On July 22, 1996, the Department of Energy announced that reductions of approximately 120 positions at Oak Ridge National Laboratory (ORNL) were required due to work changes based on anticipated budget levels for FY 1996.

The Laboratory took several actions in order to mitigate the impact of these reductions. A comprehensive effort was made to internally place individuals in positions in excess of future requirements at Oak Ridge. Through such placements, 54 workers were retained.

Consistent with ORNL policy, 60-day notices of involuntary separation were issued on July 31, 1996, to 79 workers in order to allow separations to be completed in Fiscal Year 1996. An enhanced voluntary separation program was offered consisting of 150 percent of severance along with displaced worker medical benefit, relocation and outplacement assistance under the conditions in the Oak Ridge Work Force Restructuring Plan. Acceptance for this program was conditioned on the voluntary separations eliminating the requirement for an involuntary separation.

Based on the anticipated level of participation in the voluntary separation program, some of these involuntary notices will be rescinded. Currently, 49 workers have been voluntarily separated and 17 workers have been involuntarily separated. The involuntarily separated workers received severance pay, along with displaced worker medical benefits, educational, relocation and outplacement assistance, as well as preference in hiring benefits under the terms of the Oak Ridge Work Force Restructuring Plan.

VOLUNTARY SEPARATION APPROVALS

VOLUNTARY SEPARATION PROGRAM OFFERED AT THE MOUND SITE IN OHIO

On July 15, 1996, the Department of Energy announced approval for EG&G Mound to offer a voluntary separation incentive program to employees in job classifications that have numbers of incumbents in excess of future requirements. The reduction is necessitated by the transfer of the Isotopes Separation, Safeguards and Security Research and Development (Calorimetry) programs to other DOE facilities, along with other programmatic changes.

The FY 1994 Mound Work Force Restructuring Plan identified a need to eliminate approximately 600 positions on site. Through July 1996, 479 positions were eliminated under the plan. It is anticipated that this program will substantially complete the reductions announced under the FY 1994 Work Force Restructuring Plan. The site has identified targeted reduction objectives by job classification. All positions identified for elimination are salaried, consistent with the Memorandum of Agreement concluded last year to assure continued employment for hourly workers through 1999.

The Voluntary Separation Incentive program is consistent with the program offered in 1994 at the site and consists of a graduated cash payment based on years of service, and medical, education, relocation and outplacement assistance to eligible employees.

VOLUNTARY SEPARATION AT STRATEGIC PETROLEUM RESERVE IN LOUISIANA

On August 27, 1996, the Department of Energy announced approval to offer a voluntary separation program to DynMcDermott Petroleum Operations Company employees of the Strategic Petroleum Reserve.

This program is intended to mitigate the impact of an estimated reduction of approximately 200 positions between now and the end of Fiscal Year 1998 in order to achieve improved efficiency of operations as identified in an audit by the Office of the Inspector General, and to meet changed budget and mission objectives. It is estimated that approximately 50 affected positions are in administrative support organizations in New Orleans and that the remaining positions are spread across several operational sites. Up to approximately 70 volunteers may be accepted during FY 1997 and approximately 130 in FY 1998.

The Voluntary Separation program consists of two-weeks special separation pay for each year of service with a maximum payment of $25,000 per employee. Medical and relocation benefits will also be offered to eligible participants. Estimated average separation costs under the program are $24,000, with expected annual savings when fully implemented of $12 million.

INVOLUNTARY SEPARATION ANNOUNCEMENTS

INVOLUNTARY SEPARATION NOTICES ISSUED AT OAK RIDGE IN TENNESSEE

On August 26, 1996, the Department of Energy announced that up to 300 notices of involuntary separation were provided to employees of Lockheed Martin Energy Systems (LMES) at Oak Ridge, Tennessee. The work force reductions are based on anticipated budget cuts in Fiscal Year 1997. LMES is taking several actions to mitigate the impact of these involuntary separations, including a comprehensive internal transfer of employees to available vacancies within the company.

The FY 1995-1996 Oak Ridge Work Force Restructuring Plan estimated that reductions of up to 900 positions would be required by the end of Fiscal Year 1996 as a result of changes in mission and reductions in budget. Through August 1996, approximately 500 positions have been reduced.

LMES has offered a Retirement Incentive program to its employees, with applications completed by August 19, 1996. Approximately 400 employees elected to participate in this program, with separations occurring over the next year. In light of this level of participation, it is necessary to proceed with these involuntary separations to meet program missions within available funding.

Involuntarily separated workers will receive benefits consistent with the terms and conditions included in the FY 1995-1996 Oak Ridge Work Force Restructuring Plan. These include severance payments, as well as medical, education, relocation and outplacement assistance. Involuntarily separated workers are also provided preference in any future hiring by Department of Energy contractors at Oak Ridge or other sites across the country.

WORK FORCE PLANNING ACTIVITIES

OFFICE OF WORKER AND COMMUNITY TRANSITION HOLDS WORK FORCE INTEGRATION CONFERENCE

On August 14-15, 1996, the Office of Worker and Community Transition held a conference in Washington, D.C. on the topic of Work Force Integration. The Conference was attended by over 140 individuals with responsibilities in the work force restructuring and planning area and representing all aspects of DOE organizations. The purpose of the conference was to discuss the full range of the Department of Energy's work force issues in an effort to resolve the inherent challenges of simultaneously implementing the Department's post Cold-War mission, work force restructuring guidance, contract reform objectives, performance-based management requirements and business process improvement policies.

The format of the conference focused on discussions of best practices, lessons learned and work force integration issues. The plenary session of the conference included presentations from Mr. Tom Grumbly, Under Secretary, U.S. Department of Energy, on Work Force Integration: The Alignment of Mission, People and Performance, and Mr. Paul Strassman on Becoming a Performance-based Organization--Managing for Return on Human Resources. Other topics discussed in the plenary session were Contract Reform, Work Force Planning and Restructuring, and the Work Force Planning Process.

The afternoon of the second day included small group discussion sessions on the following topics: Integrating Planning and Restructuring of Contractor Human Resources; the Work Force Information System (WFIS); the Job Opportunity Bulletin Board System (JOBBS); and Managing the Impact of Contract Reform and Business Process Improvement on Contractor Human Resources. Following the small group discussion sessions, the participants convened in a plenary session to discuss the points raised during the small group sessions.

The most immediate outcome of the conference came from Mr. Grumbly's presentation in which he directed the Office of Worker and Community Transition to organize a meeting in Washington, D.C. in October 1996 to further address the issues of work force planning and restructuring and to look at strategies for planning for FY 1997 and 1998. Attendees will consist of the DOE Operations and Field managers, the M&O Contractor Presidents, senior DOE officials from headquarters and the DOE field representatives from the area of work force planning and restructuring.

A Meeting Summary Report from the Work Force Integration Conference is being developed and will be mailed to all participants in October 1996. For those who were unable to attend the Workshop but are interested in receiving a copy of the report, please call Natasha Wieschenberg at 202-586-5830.

LABOR RELATIONS

POLICY ISSUES

SITE VISITS COMPLETED BETWEEN THE DEPARTMENT OF ENERGY AND THE METAL TRADES COUNCIL

On August 8, 1996, Mr. John Meese, President of the Metal Trades Department, AFL-CIO, visited the Oak Ridge Operations Office to meet with representatives of the Department of Energy, Lockheed-Martin Energy Systems, the Atomic Trades Labor Council and its member unions. This visit, the last in a series of five site visits as a result of discussions with the Secretary, enabled Mr. Meese to present and discuss ideas raised by union members which lead to cost savings and improved efficiencies in work performed at DOE sites. A brief tour of the Oak Ridge National Laboratory was included in the visit.

CONTRACT NEGOTIATIONS

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

COMMUNITY TRANSITION ACTIVITIES

COMMUNITY TRANSITION FUNDING APPROVED FOR OAK RIDGE

On July 25, 1996, the Department of Energy approved $3.2 million to the Community Reuse Organization of East Tennessee (CROET) to mitigate the adverse impacts of defense-related downsizing at the Oak Ridge Site.

After years of economic growth and prosperity, driven largely by federal government spending at the Department of Energy Oak Ridge facilities, East Tennessee finds itself facing an economic challenge. Since Fiscal Year 1993, approximately 1,850 contractor positions have been eliminated at Oak Ridge, with an additional 800 reductions anticipated during the remainder of 1996. Changing policy initiatives and budget cutbacks are directly affecting job growth, types of industries leaving the region and the speed at which new technology is transferred to the private sector. As a result, the region's ability to create new jobs to offset future job losses is much weaker.

The community transition grant will be administered through the Department's Oak Ridge Operations Office. CROET, the local community reuse organization, proposed to seven primary projects in the areas of: (1) reindustrialization and reuse for the K-25 Site facilities and surrounding land; (2) regional work force development for the Manufacturing Skills Campus and regional work force development projects; (3) regional planning, research, and development initiatives that would supply information technology, a National Transportation Research Center, and methods of using assets to create new jobs in East Tennessee; and (4) community transition and regional economic diversification that will assist communities to develop local economic development programs.

The $3.2 million in funding for CROET will contribute to the previous community transition initiatives in the region by creating economic development programs in the counties surrounding the Oak Ridge Site, creating jobs for displaced workers and help achieve an independent economy.

ATTACHMENT I

DEPARTMENT OF ENERGY PRIME CONTRACTOR EMPLOYMENT

Please note that the chart for Attachment I does not translate into HTML format. If you would like a copy of the chart, please call Natasha Wieschenberg at 202-586-5830.

OFFICE OF WORKER AND COMMUNITY TRANSITION CONTACTS

Director: Bob DeGrasse
202-586-7550, FAX 586-8403

Deputy Director: Terry Freese
202-586-5907, 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:

Lyle Brown
202-586-0431, FAX 586-1540

Deborah Swichkow
202-586-0876, FAX 586-8403

Labor Relations:

Lyle Brown
202-586-0431, FAX 586-1540

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 586-1540

Natasha Wieschenberg
202-586-5830, FAX 586-1540

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
423-576-0662, FAX 576-6964

Donna Kelly, Oakland Operations Office
510-637-1822, FAX 637-2008

Ken Briggs, Ohio Field Office
513-865-4267, FAX 865-4312

Dom Sansotta, Richland Operations Office
509-376-7221, FAX 376-8142

Lenora Lewis, Rocky Flats Field Office
303-966-4263, FAX 966-3321

Joel Cote, Savannah River Operations Office
803-725-2933, FAX 725-7631

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

Community Reuse Organizations

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

Dave Dillman
TRIDEC
901 N. Colorado St.
Kennewick, WA 99336
(509) 736-0629
(509) 735-6609 (FAX)

IDAHO

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

LOS ALAMOS

Jim Greenwood, Chairman
Los Alamos County Council
Los Alamos Economic Development Corporation
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, President
NTS Development
2340 Paseo del Brado
Suite D-108
Las Vegas, NV 89101
(702) 257-7900
(702) 257-7999 (FAX)

OAK RIDGE

Lawrence Young, Executive Director
East Tennessee Economic Council
1400 Oak Ridge Turnpike
Oak Ridge, TN 37830
(423) 483-1321
(423) 483-1678 (FAX)

OXNARD

Gerry Campbell
Project Manager, 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

Greg Simonton
Project Director
Community Reuse Organization
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)

Attachment: DOE Prime Contractor Employment (FY1996)