Annual report on contractor work force restructuring, fiscal year 1997
Section 3 16 1 (e)(2) of the National Defense Authorization Act for FY 1993 directs the Secretary of Energy to provide annual updates of approved work force restructuring plans that evaluate the implementation of the plan during the year preceding the report. In order to better facilitate overall evaluation of work force restructuring and community transition activities, the Department has prepared this Annual Report: Contractor Work Force Restructuring in the U.S. Department of Energy: Fiscal
... of Energy: Fiscal Year 1997. The report reviews the implementation of work force restructuring plans during Fiscal Year 1997. A total 7,000 contractor employees were separated under these plans. The Department successfully met the objective of section 3 16 1 to minimize layoffs. Of the total number of permanent prime contractor team employees separated, 56 percent left voluntarily. In achieving these results, 55 1 employees accepted early retirement offers, 1,725 employees accepted non-retirement voluntary separations and 1,639 positions were eliminated through attrition, bringing the total voluntary separations to 3,915. There were 3,085 prime contractor employees involuntarily separated. The cost of implementing these plans was $1 19 million, with an average cost of $16,800 per separation. The estimated recurring savings resulting from these separations over the next several years will be $479 million per year. Since 1993, work force restructuring has resulted in annual recurring savings of $2.8 billion. To date., 11 communities have begun community transition planning, and many have implemented programs and projects. These activities have retained, expanded, or created over 1 1,400 jobs. An additional 17,900 jobs are projected to be retained or created over the next few years as the result of these efforts. To date, the program has retained or created one job for each $10,400 of funding provided, a figure that compares favorably with other economic development activities. If you have any questions regarding this update, or any other aspects of our Worker and Community Transition Program, please contact Mr. Robert W. DeGrasse, Jr., Director of the Office of Worker and Community Transition, at (202) 586-7550.