FBP Warns Worse Layoffs Could Come if Needed Funding Isn’t Obtained
Mike Nartker
WC Monitor
10/10/2014
Hundreds of workers at the Portsmouth D&D project can breathe a sigh of relief, at least for now, with contractor Fluor-B&W Portsmouth announcing late this week that it is suspending planned layoffs that could have cut the project’s total workforce by approximately one-third. Facing a significant funding shortfall heading into Fiscal Year 2015, FBP had announced plans to eliminate a total of 675 positions out of the Portsmouth D&D project’s current workforce of approximately 1,900 employees through a mix of voluntary separations and involuntary layoffs. However, thanks, in part, to language in the Continuing Resolution currently funding the federal government, the Department of Energy has directed FBP to postpone the planned workforce restructuring until at least Dec. 12, the day after the CR is currently set to expire, according to a message FBP Site Project Director Dennis Carr sent to employees.
FBP had based its workforce restructuring plan on an anticipated funding shortfall of approximately $110 million in FY 2015. That shortfall was based, in part, on a drop in the price of uranium, which DOE has provided FBP to help fund cleanup activities at the Portsmouth site. In addition, DOE has announced plans to reduce the amount of excess uranium to be made available to help fund cleanup activities. While the CR that’s been funding the government since the start of the new fiscal year on Oct. 1 does not contain additional funding for D&D efforts at Portsmouth, it does contain language that allows DOE to spend more of the available Portsmouth funding upfront. “DOE provided us the direction to postpone the involuntary separation program based upon the language of the short-term Continuing Resolution and the expectation of full funding being provided by this follow-on Appropriations Bill or Continuing Resolution to be passed later this calendar year,” Carr said in his message.
Carr also warned, though, that FBP may have to look to increase the amount of potential layoffs if necessary funding is not obtained for the whole of this fiscal year. “In the event that this longer term bill or resolution does not provide the expected funding to fully support the project then we may be required to implement the Workforce Restructuring reduction as planned on or after December 12, 2014. A delay until December could require deeper reductions to compensate for approximately 11 weeks at a higher headcount than can be supported by the ultimately approved FY15 funding,” he said, adding, “Although I am confident Congress and DOE will address the full year’s funding issue, we are aware that unexpected events can occur outside of our control which may impact that funding profile.”
In a written response late this week, a DOE spokesperson said, “The workforce at Portsmouth continues to make great strides in the cleanup effort, and DOE appreciates Congress’s support of the Administration’s request for an anomaly in the Continuing Resolution that enabled the Department to maintain the current level of operations at Portsmouth. We will implement the cleanup at the level Congress ultimately provides in the final FY15 appropriations. The Department remains committed to the safe and successful cleanup of the Portsmouth site.”
