OFFICE OF WORKER AND COMMUNITY TRANSITION

PROGRAM UPDATE

September-October 1996

WORK FORCE RESTRUCTURING ACTIONS

PRINCETON PLASMA PHYSICS LABORATORY WORK FORCE RESTRUCTURING PLAN APPROVED

On September 6, 1996, the Department of Energy approved the Princeton Plasma Physics Laboratory (PPPL) Work Force Restructuring Plan. This plan was developed consistent with departmental policy and the objectives of section 3161 of the National Defense Authorization Act for Fiscal Year (FY) 1993. Section 3161 requires the Secretary of Energy to develop a plan for restructuring the work force for a defense nuclear facility whenever there is a determination that a change in the work force is necessary.

The plan covers restructuring that took place during the summer and fall of 1995 due to Congressional action on the FY 1996 budget request. The PPPL anticipates no further requirement for work force restructuring in calendar year 1996. If action on the FY 1997 budget necessitates restructuring in 1997, an amendment to the Work Force Restructuring Plan will be developed.

Prior to the September restructuring, PPPL had approximately 710 employees and 110 subcontractors on site. This restructuring impacted both direct and indirect personnel, including physicists, engineers, technicians, and administrators. During the restructuring, 25 employees separated under a voluntary incentive program that consisted of enhanced severance benefits as well as educational and outplacement assistance, 150 PPPL employees and 80 subcontractor employees were involuntarily separated on September 27-28, 1996.

Involuntarily separated laboratory employees received pay in lieu of notice as called for under the PPPL's personnel practices policy, as well as severance pay as called for under the contract. Separated subcontractor employees received notice and/or severance, consistent with their company's policy. All involuntarily separated employees were eligible for outplacement assistance.

Displaced Worker Medical Benefits were not provided due to the terms of the management and operating contract with PPPL, which integrates the health and welfare programs for laboratory employees with programs for University of Chicago employees. The total cost of the restructuring was $4.5 million, or $25,700 per separated employee. Anticipated annual savings associated with these reductions are $10 - 15 million.

GRAND JUNCTION WORK FORCE RESTRUCTURING PLAN APPROVED

On September 23, 1996, the Department of Energy forwarded to the U.S. Congress the Grand Junction Work Force Restructuring Plan for FY 1995 and 1996. This plan was developed consistent with departmental policy and the objectives of section 3161 of the National Defense Authorization Act for Fiscal Year 1993. Section 3161 requires the Secretary of Energy to develop a plan for restructuring the work force for a defense nuclear facility whenever there is a determination that a change in the work force is necessary.

On February 7, 1995, an announcement was made of anticipated restructuring at Grand Junction that would result in reduction of approximately 180 positions at the site. On June 20, 1995, approval was provided to circulate a draft Work Force Restructuring Plan and to implement a voluntary separation incentive program at the site. The voluntary incentive program consisted of one additional month's separation pay beyond the severance pay called for under the contract. All qualified separated employees were also offered extended medical benefits, and educational, relocation and outplacement assistance. A meeting with affected workers and other stakeholders was held on June 21, 1995 to discuss the draft Grand Junction Work Force Restructuring Plan.

A total of 74 workers participated in the voluntary separation incentive program, including 15 employees who had received separation notices on March 7, 1995, and left before May 5, 1995, but were authorized to participate in the program. Costs associated with the voluntary program were approximately $1,350,000, or $18,300 per separation. In addition, 13 reductions were achieved through attrition. Direct estimated annual compensation savings from these reductions are approximately $5 million.

Subsequently, an analysis was conducted of work force restructuring requirements, and it was determined that the voluntary incentive and attrition reductions were sufficient to meet immediate requirements. As a result, no involuntary separations took place.

On June 30, 1996, the management and operating contract with Rust Geotech at Grand Junction expired. A competitive solicitation was conducted for a Technical Assistance and Remediation contract and a separate Facilities Operations and Support contract. Both contracts are performance-based management contracts consistent with the Department's efforts to implement the principles of contract reform. The transition to the new contractors was completed on September 5, 1996. Consistent with the requirements of the Worker Adjustment and Retraining Act, all employees received notification that their employment with Rust Geotech would end on September 4, 1996.

Of the 607 workers employed by the previous contractor, 452 were offered employment by the successor contractors (MACTECH-ERS and WASTREN). A total of 360 of these employees accepted positions. An additional 13 employees were transferred to other Rust Geotech divisions. Those employees retained by MACTECH or WASTREN were provided a severance payment in accordance with the Personnel Appendix in the Rust Geotech contract in cases where the salary and benefit package with the new contractors is less than 85% of their previous level. Estimated cost of these payments is $8,500 per employee.

A voluntary separation program was offered to all employees during the transition. This voluntary program contained the same benefits package as the program offered during 1995. Of the 155 people not offered positions, 123 chose to participate in the voluntary program, and 19 were involuntarily separated. In addition, 92 employees who were offered positions chose to separate under the voluntary program bringing total participation to 215. Estimated average separation cost for these employees is $14,000. Direct annual savings from these reductions are estimated to be $6 million in direct compensation costs, factoring in hiring that is expected to be required to offset the higher than expected participation in the voluntary program.

DEPARTMENT OF ENERGY TO REVIEW BENEFIT ISSUES AND PROTECT LAYOFF AND RETIREMENT BENEFITS FOR EMPLOYEES OF PROJECT HANFORD MANAGEMENT CONTRACT (PHMC) ENTERPRISE CONTRACTORS

On October 11, 1996, the Department of Energy announced three steps to assist Hanford employees accepting employment with enterprise companies. First, during the initial two years of employment with the enterprise companies, employees of enterprise companies will be entitled to the same layoff benefits as employees who remain with Fluor Daniel Hanford and its primary subcontractors. This includes:

• Protection of Separation Credits. In the event the enterprise company does not offer or has a less generous separation pay program, Fluor Daniel Hanford (FDH) will pay the difference between separation pay that the enterprise company provides and what the employees would have received had they continued to have been employed with FDH.
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• Full Work Force Restructuring Plan Benefits. The Hanford Work Force Restructuring Plan provides scaled-down benefits for subcontractor employees, which includes the enterprise companies. FDH will provide to eligible employees the full Work Force Restructuring Plan benefits they otherwise would have received upon termination, including the enhanced separation benefit (maximum 26 vs. 20 weeks pay), displaced worker medical coverage (vs. COBRA), educational and relocation assistance.
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Second, the Department will amend the Operations and Engineering Hanford Site Pension Plan to provide certain additional benefits to enterprise company employees formerly employed by Westinghouse Hanford Company, BCS Richland, Inc., and ICF-Kaiser Hanford.

• Recognition of actual age and eligibility service for purposes of early retirement reductions.
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• Provide recognition of the salary employees earn with the enterprise company for determination of their pension benefit under the Operations and Engineering plan.
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• Provide immediate vesting of all employees who were not already vested in the Operations and Engineering Pension Plan.
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Finally, the Department will direct FDH to commission an independent study of the compensation/benefit programs of the enterprise companies. The study will compare the compensation/benefit programs of the enterprise companies with their other offices that perform similar work within the United States, and to the commercial market in which the enterprise companies must compete for business. The results of the study will be made available to employees and the public. The Department may consider further options based on the results of the study.

DEPARTMENT OF ENERGY FIELD MANAGERS' MEETING HELD IN WASHINGTON, D.C.

U.S. Department of Energy field managers and contractors met in Washington, D.C. on October 22, 1996, to discuss means for improving the process for developing and approving future work force restructuring actions.

The Secretary of Energy established the Office of Worker and Community Transition in 1994 to mitigate the effects on employees and communities of work force restructuring at defense nuclear facilities following the end of the Cold War. The Office has cooperated with Departmental programs, field offices, contractors, and workers over the past two years to ensure fair treatment of all affected parties and established an integrated process for assessing work force resources and future skill mix requirements.

The objective of the October 22 meeting was to obtain input on how best to modify the work force restructuring process to accomplish missions and tasks effectively in the future. The participants reviewed draft recommendations developed by a team which included headquarters, field, contractor and work force representatives in response to concerns that the current process is unnecessarily burdensome and time consuming.

This meeting was an important element of the Department's efforts to carry out a work force planning and restructuring process that is comprehensive, reflective of the Department's short-term and long-term challenges, and more importantly, fair to workers and communities. However, no final decisions were made on work force restructuring actions, nor will they be made, until final budget allocation decisions are made in November, 1996.

WORK FORCE PLANNING ACTIVITIES

WORK FORCE INTEGRATION MEETING HELD IN WASHINGTON, D.C.

On October 23-24, 1996, a Work Force Integration Team meeting was held in Washington, D.C. with Department of Energy headquarter, field office, contractor, and labor representatives, to identify, develop and propose improvements to, and integration of, current site-level communication, coordination and information-sharing processes that support work force planning and restructuring, community transition and involvement of labor and other stakeholders.

Initial meetings and teleconferences of the Work Force Integration Team produced five specific issues areas: transitioning skills to the community; information access; benchmarking; training; and the development of integrated site communication. The members of each of the five panels (one for each issue) worked through the issues, developed suggestions for improvements, and are in the process of preparing input to the Work Force Integration Team Implementation Plan, to be presented at the National Stakeholders Workshop in March, 1997.

LABOR RELATIONS

POLICY ISSUES

MTC-SANDIA AND LOCKHEED-MARTIN NEGOTIATIONS TAKE PLACE

On September 30, 1996, the collective-bargaining agreement between Metal Trades Council (MTC)-Sandia and Lockheed-Martin expired. Bob DeGrasse, Director, Office of Worker and Community Transition, met with members of the Council and the President of Lockheed-Martin to facilitate negotiations. An agreement was reached on October 8, 1996 and the agreement was ratified (186-183). The major issues involved were: (1) the company proposed to replace sick/absence paid time-off with a paid time-bank; (2) the union proposed a general increase for custodians; (3) the union proposal for right-to-arbitrate sub-contracting decisions; and (4) wage adjustment for skilled trades. The President of the Metal Trades, John Meese, and the President of Sandia, Paul Robinson, worked in partnership to avoid an unnecessary work stoppage.

KAISER-HILL ROCKY FLATS AND STEELWORKERS AGREE ON NEW CONTRACT

On October 14, 1996, Kaiser-Hill Rocky Flats and the United Steelworkers of America agreed to a five-year contract that negotiators say will dramatically increase productivity and provide work force flexibility. The agreement, tied to the cleanup mission at Rocky Flats in Golden, Colorado, took nearly four months of negotiating.

Key provisions of the new contract include:

-Kaiser-Hill Rocky Flats has the flexibility to privatize certain work;

-the hourly union work force will remain above 1,150;

-temporary employees may be hired for short-term projects at a lower cost;

-the number of job classifications is reduced and hourly workers may work outside of classification if qualified;

-continuation of a "D&D" classification for building deactivation and demolition; and

-a streamlined grievance-resolution process.

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:

PUBLIC PARTICIPATION ACTIVITIES

THREE PRESENTATIONS ON WORKER AND COMMUNITY TRANSITION ISSUES TAKE PLACE AT MEETINGS IN LAS VEGAS, NEVADA

The week of October 28, 1996, Bob DeGrasse traveled to Las Vegas, Nevada where he gave three presentations to groups interested in worker and community transition issues. On October 28, Mr. DeGrasse met with leaders from the Oil, Chemical, and Atomic Workers International Union (OCAW) at their Council Meeting on labor topics including contract reform, privatization, and worker transition issues.

On October 29, he met with the Board of Directors of the NTS Development Corporation (Nevada Community Reuse Organization) about possible future uses for the Nevada Test Site. Also in attendance were Senators Bryan and Reid (D-Nev.), who both provided their support of the proposed activities at the Nevada Test Site. Governor Bob Miller also showed his support by writing in a statement that, "As the emphasis on nuclear testing diminishes, there is a great opportunity to utilize the Test Site to improve our abilities to respond to other life-threatening hazards."

Among the items discussed at the meeting were: 1) development of reusable launch vehicles by Kistler Aerospace to launch low-orbit satellites by 1999; 2) research and development of hydrogen fuel (to replace oil) by Sustainable Technologies, Inc. and NRG Technologies that does not pollute the environment and can be used in automobiles; 3) negotiations with Fluid Tech, Inc. to use the Test Site to help convert radioactive and chemical wastes; and 4) development of a solar enterprise zone that includes the Test Site and the commitment by the Department of Energy to buy 10 megawatts of solar energy from the Corporation for Solar Technology and Renewable Research. It is hoped that Southern Nevada and the State may someday export electricity from solar generators.

On October 30, he met with leaders from the Metal Trades Department of the AFL-CIO at their Annual Meeting on topics including the status of labor negotiations across the sites, privatization, and leasing of employees.

UPDATE OF THE STAKEHOLDER MAILING LIST AND SURVEY OF STAKEHOLDER INTERESTS

The Office of Worker and Community Transition is continually updating and planning its public participation program and asks that you take a few minutes to fill out the survey attached to the back of this Program Update to help us ensure that your interests are identified and incorporated into the planning process. This survey is one of several that we plan to issue during the development of our public participation plan and its implementation. Your response is very important to us, and at this time we are requesting your input on the following: (1) your interest in remaining on our mailing list; and (2) the best ways to communicate with you.

We appreciate your time in filling out this short survey and assure you that all responses will be given serious consideration. Please return the survey by folding it in half (be sure return address is on the facing page), staple and mail to Laurel Smith as soon as possible. If you would prefer, you can fax the one page survey to the number listed below:

Fax number: (202) 586-1540

Mailing address: U.S. Department of Energy

(also on the back Office of Worker and Community Transition

of the survey) Ms. Laurel Smith

Forrestal Bldg, Room 6G-051

1000 Independence Ave., SW

Washington, DC 20585-0110

Please feel free to call Laurel if you have any questions at (202) 586-4091.

WORKER AND COMMUNITY TRANSITION WORKSHOP

The Department of Energy's (DOE) Office of Worker and Community Transition plans to hold its fifth national stakeholder workshop in March, 1997 in Oakland, 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, 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: Stress-related Symptoms of Downsizing; Health Implications for Remaining Employees; Violence in the Workplace; The Ten Year Plan and How It Relates to Worker Transition Issues; Revisions to the Interim Planning Guidance for Contractor Work Force Restructuring; Training Opportunities for Displaced Workers; Job Opportunity Bulletin Board System Improvements; and Life After DOE (Success Stories and Strategies).

We are in the process of forming a planning committee to assist in the development of the meeting agenda. This committee will convene early January, 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.

ATTACHMENT 1

DEPARTMENT OF ENERGY PRIME CONTRACTOR EMPLOYMENT

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

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 376-5335

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

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

FERNALD

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

HANFORD

Dave Dillman*
TRIDEC
901 N. Colorado St.
Kennewick, WA 99336
(509) 735-1000, ext. 223
(509) 735-6609 (FAX)
*alternate for Dave Dillman

Sean Stockard
TRIDEC CRO Program Assistant
(509)-735-1000, ext. 225

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

Mr. 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 89101
(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)

STAKEHOLDER INTEREST SURVEY

Please indicate your interest in remaining on our mailing list by checking the appropriate box below:

Please keep me on the Office of Worker and Community Transition mailing list.

Please remove my name from the Office of Worker and Community Transition mailing list and discontinue sending me any future informational materials. I have no further interest in the program.

If you wish to remain on the mailing list, please review the mailing label on the outside of this Program Update to ensure that your mailing information is correct. Please note necessary corrections below. Please include your phone, fax and e-mail numbers so that we can check them for accuracy in our records as well.

Name:

Organization:

Position:

Street address:

City and state:

Zip code:

Phone:

Fax:

E-mail/Internet address:

Methods of Communicating With Stakeholders

In order to help us plan and conduct an effective public participation program, we would appreciate your input. Please indicate the most effective methods of communication for you. Please check all that apply.

Program Updates, fact sheets, and other informational materials mailed directly to you.

Use of a toll-free number to request information or to provide comments.

Use of an Internet Website.

Use of an electronic bulletin board.

Have speakers available to participate at local meetings to provide information and answer questions.

Holding national stakeholder workshops to discuss global issues involving all groups.

Holding regional stakeholder workshops to discuss problems in the local area.

Use of electronic mail (e-mail) when appropriate.

Other methods: ____________________________________________

Please provide us with suggestions/recommendations on how we can improve on our current activities (i.e., offer the Program Update on a monthly basis rather than bi-monthly; frequent use of focus groups to identify and resolve issues; etc.):

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Other Comments/Suggestions:

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