OFFICE OF WORKER AND COMMUNITY TRANSITION
PROGRAM UPDATE
November - December 1996
WORK FORCE RESTRUCTURING ACTIONS
WORK FORCE RESTRUCTURING ANNOUNCED AT THE OAK RIDGE RESERVATION
On November 20, 1996, the Department of Energy announced the anticipated reduction of up to approximately 1,680 prime contractor employees at the Oak Ridge, Tennessee site in Fiscal Year 1997. It is estimated that a net reduction of approximately 600 subcontractor employees may also occur during the fiscal year. Approximately 1,400 Lockheed Martin Energy Systems (LMES), 230 Lockheed Martin Energy Research Corp. (LMER) and 50 Oak Ridge Associated Universities (ORAU)/Oak Ridge Institute for Science and Education (ORISE) employees are expected to be affected.
This work force restructuring is a result of reductions in total available funding at the site, including both reduced appropriations and declining availability of prior year uncosted balances. A draft work force restructuring plan to cover this and potential future restructuring requirements at the site is under development and will be available for stakeholder comment in January 1997. An addendum has also been developed to the FY 1996 Oak Ridge Work Force Restructuring Plan covering actions taken during that year.
It is anticipated that up to approximately 1,000 notices of involuntary separation will be provided to employees by December 2, 1996, with separations completed by the end of January 1997. Concurrently, a voluntary separation program has been offered to allow participating employees, whose separation can avoid an involuntary separation, to receive payment equal to contract severance. It is anticipated that some employees who receive involuntary separation notices may elect to participate in this program. Remaining reductions are expected to occur intermittently over the course of the fiscal year as dictated by project completion and skill requirements.
Involuntarily separated workers will receive severance as called for under their contract. Prime contractor employees involuntarily separated are also eligible for medical, educational, and relocation benefits consistent with the conditions included in the previously approved FY 1996 Oak Ridge Work Force Restructuring Plan. These employees will also be eligible for preference in hiring under the conditions enumerated in the Plan. Outplacement assistance will be available for all separated workers.
WORK FORCE RESTRUCTURING ANNOUNCED AT THE HANFORD SITE
On November 22, 1996, the Department of Energy announced that work force reductions totaling approximately 700 positions are anticipated at the Hanford site in Washington State during Fiscal Year 1997. This restructuring is the result of work scope changes and skills mix needs.
The site issued 58 sixty-day Worker Adjustment and Retraining Notification (WARN) notices of involuntary separation in mid-December to site employees under the Environmental Restoration Contract (ERC). An additional approximately 140 Bechtel Hanford, Inc. (BHI) and 500 PHMC employees are expected to be issued notices over the course of the year as projects are completed and skills mix requirements change.
Separated workers will receive severance as provided under relevant contract provisions and outplacement assistance. Separated employees of new enterprise firms will receive benefits based on their employment at the site, consistent with the announcement made in October 1996. Preference in hiring by Department of Energy contractors and subcontractors, medical, educational and relocation assistance will be available under defined conditions included in the Hanford Work Force Restructuring Plan, which has been revised and extended to cover this and any future restructuring at the site.
ROCKY FLATS DRAFT WORK FORCE RESTRUCTURING PLAN APPROVED FOR STAKEHOLDER REVIEW
On December 2, 1996, the Department of Energy announced approval to circulate for stakeholder review and comment a draft plan for future work force restructuring at Rocky Flats, Colorado. The draft plan is intended to guide periodic ongoing restructuring activities that will be required as the site transitions to ultimate closure.
The draft plan proposes policies for employees impacted by outsourcing activities, establishes procedures for work force planning to determine the need for restructuring, and defines benefit programs that may be offered, as appropriate to mitigate the impacts of necessary restructuring. Separate notification will be provided as steps are taken to implement restructuring activities. Amendments may be proposed, as appropriate, to the plan based on changed circumstances and stakeholder input.
The draft plan will be available for review by interested parties and information on the plan will be widely communicated to assure the broadest possible range of comment. Revisions to the draft plan will be considered based on these comments prior to submission for approval by the Secretary of Energy.
VOLUNTARY SEPARATION INCENTIVE PROGRAM OFFERED AT SANDIA NATIONAL LABORATORY
On December 3, 1996, the Department of Energy announced approval of a voluntary separation incentive program for targeted positions at Sandia National Laboratory.
The Laboratory has identified a need to reduce approximately 418 positions in order to adjust the skills mix created by the customers who have emerged since the end of the Cold War, to respond to budget shifts, and to improve operational efficiency. Approximately 377 identified excess positions are at Laboratory operations in New Mexico, and approximately 41 are in positions at operations in California.
The voluntary separation incentive program provides 1.5 weeks of pay per year of service, with a minimum payment of $20,000. Cost benefit analysis has indicated that the minimum payment is less than anticipated full cost impact of involuntary separations, including the lost productivity and increased training costs. Those employees with less than one year service are not eligible to participate. Participating employees will also be eligible under defined conditions to receive medical, educational, relocation and outplacement benefits. Acceptance for participation in the program will be directly linked to a reduction in a job family with identified excess requirements.
It is anticipated that the Albuquerque Field Office will circulate in the near future a draft work force restructuring plan for this identified reduction. Following the completion of this voluntary program, a reassessment of the work force will be undertaken to determine if additional restructuring at the laboratory is required.
WORK FORCE RESTRUCTURING ANNOUNCED AT NEVADA TEST SITE
On December 4, 1996, the Department of Energy announced that as a result of reduced work for others activities, and a need to reduce overhead staffing excess to efficient operation, a reduction of up to approximately 500 positions is anticipated at the Nevada Test Site during Fiscal Year (FY) 1997. A total of approximately 230 workers are expected to receive notices of separation in January 1997. Additional restructuring of up to approximately 100 positions may be required later during the fiscal year depending on Bechtel Nevada's ability to attract additional work, including work for others.
Separated workers will receive severance pay of one week for each year of service to a maximum of fifteen weeks. They will also be provided outplacement assistance and preference in hiring by Department of Energy contractors and subcontractors. They will be eligible under defined conditions to receive medical, relocation and educational benefits.
The Nevada Operations Office is developing an addendum proposing limited modifications to the FY 1995 Nevada Work Force Restructuring Plan. This addendum will be available for stakeholder review and comment prior to final approval by the end of January 1997.
VOLUNTARY SEPARATION INCENTIVE PROGRAM TO BE OFFERED AT PANTEX PLANT
On December 6, 1996, the Department of Energy announced that a voluntary separation incentive program will be offered at the Pantex Plant in Amarillo, Texas. This program is intended to mitigate the impact of work force reductions necessary to improve operational efficiency at the site and to match the work force with assigned work scope and associated funding.
A comprehensive analysis of the Pantex work force has identified approximately 350 positions in excess of future requirements. Acceptance for participation in the voluntary separation incentive program will be linked to a reduction in the necessity to involuntarily separate another employee to meet the skills mix requirements for the Plant.
The voluntary separation program will consist of 1.5 weeks pay per year of service, with a maximum of 27 years service or $15,000, whichever is greater, as well as displaced worker medical benefits, educational, relocation and outplacement assistance. Eligibility requirements will be clearly communicated to employees and will be included in a draft work force restructuring plan for the Pantex Plant, which is expected to be circulated for stakeholder comment during the period for consideration by employees of the voluntary separation incentive program. At the conclusion of the voluntary separation incentive program, a reassessment will be made of the remaining work force and skills requirements to determine if involuntary separation may become necessary.
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 fourth quarter of calendar year 1996:
| Site | Union | Type of Employees |
| Idaho | ATU, Local 1517 | Bus Drivers |
| Oak Ridge | UPGWA | Guards |
| Savannah River | UPGWA | Guards |
PUBLIC PARTICIPATION ACTIVITIES
WORKER AND COMMUNITY TRANSITION WORKSHOP
The Department of Energy's (DOE) Office of Worker and Community Transition plans to hold its Fifth Annual National Stakeholder Workshop on April 9-11, 1997, at the Oakland Marriott in California. This meeting will address the progress made on the issues and challenges identified at the last stakeholder's meeting in Atlanta, Georgia on March 13-15, 1996. 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.
Among some of the special topics being considered are: Human Resources Impacts of Downsizing; Violence in the Work Place; Reconfiguration of the DOE Complex: Environmental Management's Ten Year Plan and the Final Programmatic Environmental Impact Statement for Stockpile Stewardship and Management; Revisions to the Interim Planning Guidance for Contractor Work Force Restructuring; Training Opportunities for Displaced Workers; Job Opportunity Bulletin Board System Improvements; and a Work Force Information System (WFIS) Presentation.
We are in the process of forming a planning committee to assist in the development of the meeting agenda. This committee will convene mid-February 1997 via teleconference to discuss the meeting format and topics. If you would like additional information or would like to be a member of the planning committee, please contact Laurel Smith at (202) 586-4091.
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
Special Assistant: Tony Carter 202-586-3323, FAX 586-1540
Program Communications: Pat Parizzi 202-586-7550, FAX 586-8403
Work Force Restructuring Field Contacts
COMMUNITY REUSE ORGANIZATIONS
FERNALD
HANFORD
IDAHO
LOS ALAMOS
MOUND
NEVADA
OAK RIDGE
PINELLAS
PORTSMOUTH
ROCKY FLATS
SAVANNAH RIVER