Miller announces next step in workforce restructuring

Emphasizing that it is a "difficult decision, but the right decision," Director George Miller outlined the Lab’s approved Involuntary Separation Program Thursday during meetings for employees and managers.

Earlier this week, the Department of Energy approved the Lab’s Involuntary Separation Program (ISP) as part of its 3161 Workforce Restructuring Program. The ISP will reduce up to 535 career indefinite positions at the Laboratory. As a result, approximately 200 operations positions, 200 science and technology positions, 100 Director’s Office positions and 35 program positions could be eliminated.

As required by federal law, the Laboratory sent out WARN Act notifications to approximately 3,200 Laboratory employees Thursday afternoon. The notifications are required for any employee who could be part of the layoff pool. Any employee who was not excluded from taking the Voluntary Self-Select Option Program (VSSOP) will receive a letter.

However, Miller and Art Wong of Strategic Human Capital Management reminded employees that receiving a WARN Act letter does not mean the employee also will receive a layoff notice.

Employees selected for layoffs will receive official notice the week of May 19. Those employees will leave the Laboratory the week of May 19 through September according to years of service.

The need for a workforce reduction is necessitated by multiple factors — cost of the Lab management contract, a federal budget that was $100 million lower in FY 2008 and remains uncertain for FY 2009 and higher operating costs. The cost of supporting direct missions for the Laboratory is nearly $1billion, or approximately two thirds of the Lab’s overall budget.

While the Laboratory has streamlined some of its operating costs, a workforce reduction coupled with ongoing efforts to reduce costs, "will ensure we meet our goals for FY09," Miller said. "We’re implementing our plan to deal with our $280 million shortfall and to reduce the Lab’s cost of doing business in FY 2009 to the same as FY 2007."

"This has been a difficult path forward. It’s dramatic, and I have no illusions how hard this is," Miller added. "But I am convinced it’s the right thing to do."

Miller also cautioned it "will take a lot of empathy and sympathy for the emotions going around," and he cautioned everyone to be vigilant with regard to safety and security. "In these times it’s very easy to get distracted and that can have serious security and safety consequences; it’s critical we remain focused on our safety and security."

Wong outlined the ISP process and the efforts each Principal Associate Director has gone through to recommend a plan of action. A Layoff Policy Implementation Review Committee also was formed to ensure fairness, consistency and adherence to policy.

As previously reported, layoffs are based on skills, knowledge and abilities for scientists and engineers (the 200 job series), and seniority for all other job classifications. Seniority is calculated by full-time equivalent months of continuous service. Severance is calculated using the employee’s base salary rate (hourly rate at 100 percent time) and the employee’s length of continuous service.

All job classifications, along with any scientist or engineer with less than 10 years of experience, may receive up to 30 days pay in lieu of notice, along with one week of severance pay per year of service, up to 26 weeks.

Scientists and engineers with more than 10 years service also will receive one week of severance per year of service, up to 26 weeks. Scientists and engineers with more than 10 years of service will not recieve pay in lieu of notice. Instead they will work out of a transition area for the remainder of their notice period. Scientists with more than 10 years but less than 15 will receive 60 days’ calendar notice; more than 15 years but less than 20 receive 90 days’ notice; and more than 20 years of service will receive 120 days’ notice.

The Laboratory will open a resource center to assist affected employees targeted for layoff with benefits, severance and separation and job search assistance. The center’s location will be announced at a later date.

"The goal is to treat these employees with the dignity they deserve," Wong said.

Starting today, employees who were not excluded from VSSOP may check LAPIS for their seniority and severance calculations.

In addition, Strategic Human Capital Management will be holding briefings at noon April 24, 28 and 30 to further discuss layoff policy details, benefits information and resources available. Information, including slides from Miller’s and Wong’s presentations, also will be posted on the Retooling the Laboratory Website.

Miller closed each meeting by reminding "these are very trying and difficult times for the entire Lab, and it’s important we be sensitive to the variety of emotions."As painful and difficult is, it is the right thing to do. A lot of people will continue to look to us to provide solutions to the important issues of our time."

The presentation will be rebroadcast on Lab TV channel 2 Friday, April 18 through Thursday, April 24 at 4 and 10 a.m., and 12, 2, 4 and 8 p.m.