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Tuesday, April 15, 2008

ISP Approved = 535 FTE's To Go

Colleagues:

As you know we have been going through a series of transition activities involving workforce restructuring and cost reductions that are designed to make the Lab both more efficient and more competitive in the future.

The goal is to enable programmatic growth among our traditional clients and to develop new ones as well.

We are motivated to be more efficient because of the increased costs of doing business under the new contract, decreases in our funding, and because we must modernize our management methods for delivery of services.Workforce restructuring has been an important component of our plan.

Last fall, I announced a three-phase workforce-restructuring plan to streamline our staff.

The first two phases included our flexible term and supplemental labor personnel, as well as a Voluntary Separation Program for indefinite career employees.

Through these efforts and normal attrition, we have decreased the Labs workforce by nearly 900 people. This is a good start, but not enough to meet our goals.

I have been notified that DOE Secretary Sam Bodman and National Nuclear Security Administrator Tom DAgostino have approved the Labs 3161 Workforce Restructuring Plan. This plan includes an Involuntary Separation Program (ISP) for up to 535 indefinite career employees.

We are now proceeding with the detailed planning, including a timeline for implementation, consistent with this authorization.

The approved Workforce Restructuring Plan is available on the NNSA Website. A press release is available on the Web.

As I mentioned to you last month, it is very important for me to share any news like this as soon as possible.

I know that the best way to do this would have been to discuss it in an all-hands meeting today. Unfortunately I cannot do so until Thursday because I am in Washington D.C. today for meetings in preparation for my Wednesday testimony before the Senate Energy and Water Appropriations Subcommittee.

At this testimony I will discuss the countrys nuclear weapons stockpile and nonproliferation programs, the Labs science and technology contributions to the nations security, and the proposed FY2009 budget. I believe that this testimony is extremely important for the Lab, the department and the nation.

I will hold an all-hands meeting as soon as I return on Thursday, April 17, at 1 p.m. in the Bldg. 123 auditorium to talk to you more about our path forward.Thank you for your patience and understanding.

Regards,
George Miller

4 comments:

Anonymous said...

My take on all this bull,

Hope that this doesn't bore you but thought you might be interested it what is happening now.

It appears that our "new " Bechtel management team, receiving approximately $80 million each year from Department of Energy as their fee to manage us, is really charging almost $130million to do the job because of payroll matching funds in TCP1/2 and increased health care costs according to them (actually its the American taxpayer footing the bill).

With the budget shrinking and the prior mentioned costs coming directly out of our operating budget its obvious this shortfall will only be resolved by laying people off.

The University of California managed us for only ~$14 million each year to do the same thing.

The new management team, at the direction of the Department of Energy, has begun implementing the RIFs necessary to significantly reduce the size and cost of the Nuclear Weapons Complex.

We started out this process with approximately 9000 employees and a $280 million dollar shortfall in operating funds thanks to a reduction in funding from Congress and the increased management fees; now we are rapidly approaching the 7000 employee mark.

If you use an average cost per employee of $200K (which salary plus benefits, infrastructure cost and management overhead - a conservative figure by the way) times 1,535 laid off employees = a grand total savings of $307 Million per year; however since this cost savings (reduction) is being carried out half way through this fiscal year it most likely represents a savings of half that amount - $154 Million. Add in the fact that we are already hearing that Congress is going to cut our budget by another 10% in October and I think that you get the picture. I sense that my relocation may be coming sooner than I thought

A lot of you may be coming to this realization too,or, at least should since we are going to have a $63M shortfall for FY09 and another 10% cut in operating funds, totally about the sane as FY-08, $283M. If all goes as I suspect that should put another 1000- 1535 people out the gate next year at or around the same time. How do you like that. The lab will be down to 4,500 people just as CM presentation shown but was emphatically denied all along.

I love the lies, one after another or should I say simply no truths.

Anonymous said...

I wonder how long it will be after the 535 FTE's are fired will just one of them get in touch with the lawyers listed on the right side of the root page of this blog and start a class action suit. Can't wait to sign up.

The question will be. How can they fire FTE's when we still have 1000 term, temps and contracts on site of which some of the FTE's that are bout to get the boot could in fact do just as well. It should be interesting to see the results. Since DOE is no longer to to fund the suit or pay for the loses I think next years budget may suffer even more than planned for.

Oh well, what's another $100M tax fee in pay outs to these people mean anyway.

I hope they all live very well after their rewards.

Anonymous said...

April 15, 2008 5:31 PM

If you are going to sue each one of you should go for $1M a piece after taxes. Stick those funds in a conservative CD at 4% and you should be fine. I wish each and everyone one of you the best.

Anonymous said...

Maybe this will all be over by the end of April and we can have a little piece, until the next round of RIF's. Contracts and Terms don't get all excited about this little blip, a new 3161 and WARN act is well on its way for FY-08. However, enjoy the rest of the FY and make plans accordingly. Be wise and don't get fooled again. Maybe you should run like heck.

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