OFFICE OF WORKER AND COMMUNITY TRANSITION
PROGRAM UPDATE
May - June 1996
WORK FORCE RESTRUCTURING PLANS
IDAHO NATIONAL ENGINEERING LABORATORY (INEL) WORK FORCE RESTRUCTURING PLAN APPROVED
On May 10, 1996, the Department of Energy approved the Fiscal Year (FY) 1995-1997 Idaho Operations Office Work Force Restructuring Plan. The plan covers all work force restructuring that has occurred, or may occur, over this period. The plan was developed with extensive consultation of interested stakeholders, including representatives of the work force.
A total of 1,211 positions were reduced at the site in early FY 1995. A total of 624 employees were accepted for an early retirement program and 587 participated in a voluntary separation incentive program. Approximately 280 additional positions were reduced through attrition. No involuntary separations took place at INEL during FY 1995. The Department estimates annual savings from these reductions of between $72 and $144 million.
The Idaho Operations Office has identified a need to reduce approximately 375 additional positions to match the work force with future mission and budget resources. Therefore, the Department also approved re-opening the opportunity to participate in the voluntary separation program in the Plan to workers in job classifications identified as excess to future requirements. This program provides a lump sum payment equal to six months pay. Eligible employees will also be offered displaced worker medical benefits, extended life insurance, educational, relocation and outplacement assistance. The Operations Office will reassess any requirement for reductions beyond those who participate in this voluntary program in light of final action on the FY 1997 budget and other factors.
Amendments may be proposed to the plan at a later date if there is a determination that any future work force restructuring requirements can be more appropriately addressed through modification of the plan's provisions.
WORK FORCE RESTRUCTURING ANNOUNCEMENTS
SAVANNAH RIVER CONSTRUCTION WORK FORCE TO REMAIN STABLE THROUGH 1996
On May 9, 1996, the Department of Energy announced that the construction craft work force at the Savannah River Site (SRS) will remain stable for the remainder of 1996. This will be accomplished by accelerating construction work planned for the future into the current period. As a result, the Department will avoid anticipated reductions in the volume of work and up to 400 construction craft jobs, previously planned for July through September 1996.
On April 16, 1996, the Department announced a moratorium on involuntary lay-offs of SRS's permanent Westinghouse Savannah River Company, Bechtel Savannah River Inc., and Wackenhut Services, Inc. employees. The announcement did not include construction workers at the site based on project schedules at that time.
The accelerated work will include construction work involving modifications on plant structures and equipment at SRS's High Level Waste facilities and construction activities on other waste removal and non-nuclear reconfiguration projects. While it is anticipated that the number of positions will remain stable, the skills mix is expected to change as the projects progress, following standard construction practices. The rescheduling of project work will allow SRS the opportunity to concentrate a pool of construction and craft skills in the completion of several projects while an analysis of future projects is performed.
WORK FORCE RESTRUCTURING ANNOUNCED AT GRAND JUNCTION, COLORADO
On June 14, 1996, the Department of Energy announced work force restructuring activities will occur during contract changeover at Grand Junction, Colorado. On June 30, 1996, the current Management and Operations-type contract with Rust Geotech expired. It is replaced by two fixed-price, small business performance-based contracts, consistent with the Department's contract reform initiatives. A 45-day transition period is planned with the new contractor takeover, scheduled to be completed on August 15, 1996.
Consistent with the requirements of the Worker Adjustment and Retraining Act (WARN), all Rust Geotech employees will receive notification that their employment will end on August 14, 1996.
It is anticipated that between 440 and 510 current employees, out of a total site population of 590 workers, will be offered employment with the successor contractors. These employees will be provided with a pro-rated portion of severance based on a comparison of the successor contractor compensation package to the current Rust Geotech package, as called for under the existing contract. Estimated additional costs for these payments is $8,500 per employee.
A voluntary separation incentive program will be offered for employees in positions identified as having incumbents excess to the requirements of the successor contractors. This voluntary program will provide an additional one month's pay. If the voluntary program does not attract sufficient participants to meet the 80-150 reduction target, employees will be involuntarily separated. All employees who are not offered employment by the new contractors will receive severance pay as called for under the Rust Geotech contract, and will be offered extended medical, education, relocation and outplacement assistance. The estimated cost for this restructuring is up to $3.5 million, or $23,000 per separation. Direct annual compensation savings from this employment reduction are expected to be between $4 and $8 million.
DOE ANNOUNCES WORK FORCE RESTRUCTURING AT LAWRENCE LIVERMORE NATIONAL LABORATORY AT LIVERMORE, CALIFORNIA
On June 17, 1996, the Department of Energy's Oakland Operations Office announced plans for a Lawrence Livermore National Laboratory work force restructuring that includes a financial incentive to those who voluntarily leave the Laboratory.
The purpose of the restructuring is to align staffing levels and skills mix with current and anticipated Laboratory needs. Specific drivers of the restructuring include changing operational methods and practices, changing programmatic needs, and consolidations and eliminations resulting from cost-cutting efforts. Restructuring requirements have been identified as part of a comprehensive internal review of operations.
The restructuring could result in elimination of up to an estimated 600 positions during Fiscal Years 1996 and 1997. An important goal in this process is to minimize the need for involuntary separations through normal attrition, internal reassignments, and a Voluntary Separation Program (VSP) that will include financial incentives for employees who voluntarily leave the Laboratory. The voluntary program will provide an enhanced severance, along with extended medical, educational, relocation and outplacement assistance.
The Laboratory will continue to hire in areas where there is a lack of critical skills. The opportunity to participate in the VSP will continue through the second half of FY 1996. Eligibility for participation in the program will be based on identified positions with excess incumbents for future requirements, or an identified ability to allow the separation without an outside hire. A reassessment of the work force will be conducted after the voluntary program is completed to determine what further restructuring may be necessary.
A draft work force restructuring plan, including an assessment of areas where the incumbent work force exceeds future requirements, was developed by the Department's Oakland Operations Office and was made available for review and comment to Laboratory employees and the general public. Also, on June 27, 1996, the Department's Oakland Operations Office also held a stakeholder meeting in Livermore on the draft plan.
VOLUNTARY SEPARATION APPROVALS
ENHANCED RETIREMENT PROGRAM ANNOUNCED AT HANFORD IN WASHINGTON STATE
On June 13, 1996, the Department of Energy's Richland Operations Office announced the approval to open a window for participation in an enhanced retirement program by eligible employees of Westinghouse Hanford Company and its integrated subcontractors, and Bechtel Hanford Incorporated and its pre-selected subcontractors. The program will closed August 30, 1996.
Secretary of Energy Hazel O'Leary announced on April 18, 1996, during her visit to the Hanford site that the Department intended to offer an opportunity for these employees to participate in an enhanced retirement program this year to mitigate the impact of contractor change-over on the work force. The plan would add three years of service and three years of age in calculations to determine employee eligibility for retirement. It is anticipated that up to approximately 700 employees may choose to participate in this program.
The Richland Operations Office has worked with the Office of Worker and Community Transition and other affected offices in Departmental headquarters to develop specific details to implement the Secretary's commitment. The program parallels the early retirement program offered at the site in 1994. It provides flexibility to add additional years of service for employees who do not need three years of age to qualify for unreduced pension benefits, as well as providing a $125 a month bridge to Social Security for those between the ages of 55 and 62.
Of the 158 employees who received notices of involuntary separation on or after April 11, 1996, 42 are eligible to participate in the program after the period for which they are provided severance benefits.
ANNOUNCEMENT OF AN ENHANCED RETIREMENT PROGRAM AT OAK RIDGE, TENNESSEE
On June 19, 1996, the Department of Energy announced that an enhanced retirement program will be offered for Lockheed Martin Energy Systems employees at Oak Ridge, Tennessee. The Oak Ridge Operations Office has concluded it must reduce its work force by up to 600 positions as a result of anticipated funded task adjustments and reengineering efforts. This reduction is consistent with the announcement made on May 23, 1995, of a potential reduction of 900 positions during Fiscal Year 1996.
These reductions will be accomplished through an enhanced retirement program that would add 2.5 years of age and service to an employee, along with a $5,000 transition payment. The cost of the added years of age and service would be funded through $19.8 million in excess assets in the retirement system and the transition payment would require $2.8 million of program funding. Average estimated cost per participating employee is $40,000. Estimated annual direct compensation savings from these reductions is $35 million.
VOLUNTARY SEPARATIONS ANNOUNCED AND INVOLUNTARY SEPARATION NOTICES PROVIDED AT ROCKY FLATS, COLORADO
On June 25, 1996, the Department of Energy announced that 578 workers have been accepted to participate in a voluntary separation incentive program as provided for in the Rocky Flats Work Force Restructuring Plan. This voluntary separation incentive program provides enhanced severance as well as displaced worker medical benefits, education, relocation and outplacement assistance under the terms and conditions outlined in the site Restructuring Plan.
In addition, 60-day notices of involuntary separation will be provided to approximately 372 employees at the Rocky Flats Environmental Technology Site. These involuntary separations conclude implementation of a reduction of approximately 950 positions announced on March 18, 1996. Involuntarily separated workers will receive severance pay as called for by contract, as well as the medical and educational benefits provided to voluntarily separated workers. Involuntarily separated workers who have been employed on site since September 27, 1991, will also be provided preference in hiring by DOE contractors at Rocky Flats or other sites.
The average cost for these separations is $29,500 per position eliminated, with anticipated annual savings from pay and benefits totaling approximately $57 million. Potential annual savings from pay and benefits is estimated to be over $100 million.
REOPENING OF VOLUNTARY SEPARATION INCENTIVE PROGRAM AT THE MOUND PLANT
The completion of projects and other mission adjustments have resulted in the need to reduce additional positions at the Mound Plant in Miamisburg, Ohio.
In FY 1995, an announcement was made by the Ohio Operations Office on the need to reduce up to 600 positions. To-date, approximately 475 positions have been reduced since that announcement. The Manager of the Ohio Operations Office has requested that the Voluntary Separation Program included in the Mound Work Force Restructuring Plan be re-opened to job classifications with current levels above future requirements. No further involuntary separations are anticipated during 1996.
WORK FORCE PLANNING ACTIVITIES
WORK FORCE PLANNING INTEGRATION GUIDANCE GROUP COMPLETES PLANNING PROCESS TO ASSIST THE FIELD IN RESTRUCTURING
At the end of May 1996, the Work Force Planning Integration Guidance Group completed the development of a planning process to assist the field in preparing its work force restructuring plans. The process addresses the three stages of work force planning: analyzing the current work force to determine knowledge and critical skills; assessing future mission requirements; and developing human resource strategies to meet future needs. The process is intended to provide clear and concise guidance to the field and contractors in integrating the planning process with the work force restructuring plans. The Office of Worker and Community Transition will review each restructuring plan for evidence that the work force identified in the plans is based on an analysis of current and future capabilities and requirements.
The process utilizes the Common Occupational Classification System (COCS) as the mechanism by which to classify contractor employment. Oak Ridge Operations and Ohio Field Offices served as pilots for converting their current job classifications to the COCS. Using existing employee data as a baseline, both sites categorized individual employees into one of the ninety COCS job categories.
As another initiative to integrate work force planning with work force restructuring, the Office included work force planning contacts from the field and M&O contractors into the bi-monthly work force restructuring conference calls.
WORK FORCE PLANNING BOARD OF DIRECTORS AGREES ON AGGREGATE COLLECTION AND REPORTING OF CONTRACTOR EMPLOYMENT AND ON WORK FORCE PLANNING AND RESTRUCTURING PERFORMANCE MEASURES
On June 17, 1996, the Work Force Planning Board of Directors approved the work force planning guidance that aggregate collection and reporting of contractor employment information be provided to Headquarters through the Work Force Information System at the COCS nine-family level. The Board also approved the Office of Worker and Community Transition's expectation that, where work force restructuring occurs, there be aggregate collection and reporting of contractor employment to Headquarters in the Work Force Restructuring Plan that contains greater specificity by site and appropriate supporting data. A more detailed level of contractor information may include reporting using the 90 COCS job categories (desirable for consistency), but other comparable reporting classifications will be acceptable.
The Board also agreed to a reformatting of the draft work force planning and restructuring performance measures developed by the Performance Measures Subcommittee. The performance measures will be tested through a pilot conducted by the Richland Operations Office. Once the pilot is completed, the final performance measures will be transmitted to the Board for concurrence.
WORK FORCE INTEGRATION CONFERENCE PLANNED FOR AUGUST 14-15, 1996 IN WASHINGTON, D.C.
On August 14-15, 1996, the Office of Worker and Community Transition will hold a conference entitled "Work Force Integration: The Alignment of Mission, People and Performance" at the Capital Hilton in Washington, D.C. The conference will 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, performance-based management requirements and business process improvement policies. The format of the conference will focus on discussions of best practices and lessons learned in the process of obtaining an effective and efficient work force.
LABOR RELATIONS
MEETING ON LABOR STANDARDS, LABOR RELATIONS AND BENEFITS ISSUES
On June 25 - 26, 1996, in Denver, Colorado, the Department of Energy held a labor relations' issues meeting to explore ways to strengthen tri-partite communications between the Department, its contractors and represented employees. Approximately 18 departmental personnel from Headquarters and field organizations attended. The meeting was organized in response to comments received during the March 1996 National Stakeholders Workshop for a future meeting on labor relations' issues.
Among the specific issues covered were: (1) the process used at each field organization to make labor standards determinations; (2) incentives provided to different groups of employees during work force restructuring; and (3) the status of tri-partite committee efforts at each site.
John Edmonson of the Office of Contractor Human Resource Management at Headquarters held a session on the following topics: (1) the Compensation, Benefits, Employee Assistance Program and Substance Abuse chapters in the new DOE Order on Contractor Human Resource Management; (2) status on advance understandings for personnel costs; and, (3) the health benefits study.
SITE VISITS CONTINUING BETWEEN THE DEPARTMENT OF ENERGY AND THE METAL TRADES COUNCIL
The following site visits took place during the months of May and June 1996: Pantex (Amarillo, Texas) on May 1; Sandia (New Mexico) on June 11-14; and Fernald (Ohio) on June 18-19. Building Trades Council representatives attended all the meetings.
SETTLEMENT OF OAK RIDGE METAL TRADES COUNCIL CONTRACT
The Atomic Trades Labor Council (ATLC) and Lockheed Martin Energy Systems reached an early settlement on April 29, 1996. The previous collective bargaining agreement expired on June 21, 1996. The terms of the new agreement include: 1) a five-year contract; 2) 3% increase to base wages per year for each year of the contract; 3) two-tier wage system for lower positions (10% differential); and 4) salaried medical program.
CONTRACT NEGOTIATIONS
The following is a list of collective bargaining agreements scheduled to be negotiated in the second quarter of calendar year 1996:
| Site | Union | Type of Employees |
|---|---|---|
| Los Alamos | IGUA | Guards |
| Oak Ridge | ATLC | Metal Trades Council (Production and Maintenance) |
| Nevada | IGAN | Guards |
COMMUNITY TRANSITION ACTIVITIES
SECOND ROUND OF COMMUNITY TRANSITION FUNDING TARGETED FOR NORTHERN NEW MEXICO
On May 13, 1996, the Department of Energy announced that it had earmarked an additional $5 million in community transition funding to mitigate the adverse impacts of defense-related downsizing at the Los Alamos National Laboratory (LANL). The new funding enables three counties affected by downsizing at LANL -- Rio Arriba, Los Alamos and Santa Fe counties -- to fully develop recommendations made by the Northern New Mexico Defense Adjustment Task Force. The first $5 million was primarily devoted to a revolving loan fund for businesses, an in-plant training fund, and a number of community-specific projects, such as business incubators and land authorities.
The decision to allocate an additional $5 million was made for two reasons:
The Department expects that this new funding will be leveraged with other Federal, state and private sector funds to drive economic development initiatives in Northern New Mexico. The newly created CRO, composed primarily of business representatives from the three affected counties, will make recommendations to the Department about projects that should be funded. Several initiatives that are likely to be proposed by the CRO include a maturation fund for technologies emerging from LANL, efforts to encourage the regional location of businesses that are privatized or outsourced by LANL, and a telecommunications initiative.
HANFORD COMMUNITY AND ECONOMIC DIVERSITY SESSION
On June 27-28, 1996, Robert DeGrasse, Director, Office of Worker and Community Transition, met with the Tri-City Industrial Development Council, the local Hanford Community Reuse Organization. In attendance were the recipients of the first $2.1 million grant to the Hanford community and those who will be receiving additional grant money ($11 million over the next two fiscal years). The proposed projects include the retention and rehiring of Hanford personnel into the private sector and the creation of new jobs and businesses.
REVIEW OF COMMUNITY ASSISTANCE GRANT PROPOSAL BY OAK RIDGE OPERATIONS OFFICE
On June 17, 1996, the Office of Worker and Community Transition met with the Oak Ridge Operations Office, the Economic Development Administration and the Community Reuse Organization (CRO) of East Tennessee to discuss the outcome of the review of the CRO's grant request for community assistance. The CRO had submitted the request on March 14, 1996, to the Oak Ridge Operations Office for review and comment. The grant application was also reviewed by the Economic Development Administration, U.S. Department of Commerce, as part of a third-party review.
REVIEW OF COMMUNITY ASSISTANCE GRANT PROPOSAL BY THE SAVANNAH RIVER OPERATIONS OFFICE
On June 17, 1996, the Office of Worker and Community Transition met with the Savannah River Operations Office, the Economic Development Administration and the Savannah River Regional Diversification Initiative to discuss the outcome of the review of the Savannah River Regional Diversification Initiative's grant request for community assistance. The grant was submitted on December 8, 1995, to the Savannah River Operations Office for review and comment. The grant application was also reviewed by the Economic Development Administration, the U.S. Department of Commerce, as part of a third-party review. Further action is pending on the response of the Savannah River Regional Diversification Initiative to the Office of Worker and Community Transition.
PUBLIC PARTICIPATION ACTIVITIES
OFFICE OF WORKER AND COMMUNITY TRANSITION CONDUCTS CUSTOMER SATISFACTION QUESTIONNAIRE
The Office of Worker and Community Transition developed a Customer Satisfaction Questionnaire to help the Office improve the services provided to its customers and stakeholders. The questionnaire was first distributed at the March 1996 National Stakeholder's Workshop in Atlanta, Georgia. On June 13, 1996, a mailing was sent to approximately 900 individuals that were not able to attend the workshop. While the response rate was average for a questionnaire (about 10-14%), the Office is very interested in hearing back from as many customers and stakeholders as possible. If you did not receive a copy of the questionnaire and are interested in responding, please call Natasha Wieschenberg at 202-586-5830. We are also in the process of placing the questionnaire on the Worker and Community Transition Home Page.
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