- Flattened budget
- June ’06 began substantially extra costs to absorb due to structure of the new contract at LANL
- Last year we took aggressive action to deal with those extra costs which helped us get through FY07 although this has reduced the normal flexibility that used to be available to address budget concerns
- Unusually large uncertainty around the budget for this and future years
- Continuing Resolution is at FY07 level which may look well on paper but does not portend what the budget will really end up being for FY08 and out years
- Over the last 2 years we have had extremely low turnover (attrition) in the Lab
Due to these points, there aren’t many options to deal with the budget issues however we are working to protect the long-term well being. The vitality of the institution to carry out the mission now and in the future is my (Anastasio’s) responsibility.
- Reduce workforce by 500-750 employees – 6-9% of the workforce, applies across the Lab and at all levels from entry level and management
- Don’t allow there to be any compromise of the safety and security of the Lab
Conforming to the 3161 process, this action will be done in three phases:
- Self-selection program
- Minimize the need for a potential involuntary separation (Phase 2 or 3)
- Employees (LANS) who are eligible can volunteer to separate
1. Not successful for any enhanced incentive
2. This will be the only opportunity to voluntarily separate with financial benefits – there will be no other opportunity (this is the best and only opportunity)
3. Will receive benefits for either voluntary or involuntary separation
a. Monetary (severance benefit) x yrs of svc
b. Continuation of medical benefits for defined period of time
1. submitted resignation
2. limited term employee
3. Under grad or other student
4. apprentice or other training program participant
5. in process of being terminated for cause
6. Necessary employee
We must ensure that we maintain the right skills and expertise in order to fulfill our current and future missions. Some employees will not be permitted to apply; employees in those job classifications will be notified following NNSA’s approval of the plan. In addition, Lab management will review each individual application in order to accept or deny based on:
· An employee separation will interfere with meeting key deliverables
· An employee has demonstrated performance in attracting large grants/funding that support critical missions
· An employee has special clearances or skills that contribute to key missions
Employees will be notified of their eligibility (or ineligibility) following NNSA’s approval. Communication will be given via meetings, mailings, etc.
If approval happens this week:
Announce today 11/19/07
Application period 2 wks 11/26 – 12/5/07
Employee Rescission 12/6/ - 12/10/07
Approval Process 12/11/- 12/19/07
Employees notified 12/20/07
Employees depart 1/10/08
After applications, notification of receipt of application, assess where we are at – looking at workforce that remains (flexible workforce, realignment) to conclude Phase 1.
2. Phase 2 will be addressed following conclusion of Phase 1.
Based on skills mix requirement and budget information, a decision will be made whether there will be a need for an involuntary reduction that would be Phase 2. It will follow quickly after the conclusion of Phase 1. The eligibility criteria will be the same as Phase 1 (for a period of 12 months, if initially denied in Phase 1).
We will be working in parallel on the details for Phase 2 as we go through Phase 1. Issues such as criticality of that person’s position, skills, documented employee performance, sustained …… There will be further communications, including all-hands meetings such as today’s meeting. We will hope to have more clarity regarding budget issues which will allow consideration and planning for a Phase 3 which would be a subsequent reduction if that should be necessary.