From staff reports
NS&D Monitor
4/18/2014
As Consolidated Nuclear Security moves a third of the way into its transition as the management and operating contractor at the Y-12 and Pantex nuclear weapons plants, the Bechtel-led team is revealing more of its employment plans to employees, introducing additional members of its leadership team and giving some details of how it intends to deliver on commitments to save the government billions of dollars over the next decade. The current contractors at the two sites—B&W Y-12 and B&W Pantex—announced plans this week for Voluntary Separation Programs to begin reducing the workforce as part of the transition of contractors. While the B&W contractors will be carrying out the workforce reductions, they’ll be doing so in line with the staffing plans put forward by CNS, which will take responsibility for managing the sites on July 1.
In a meeting at Y-12 this week, CNS President and CEO Jim Haynes said the overall workforce reductions at Y-12 and Pantex are expected to be under 5 percent and while he didn’t reveal exact numbers, he hinted that the actual percentage would be significantly below 5 percent of the total workforce. About 4,300 employees are currently on the payroll at B&W Y-12, while the number at B&W Pantex is about 3,100. “The VSP will be targeted to specific job classifications and roles identified by CNS,” B&W Y-12 General Manager Dave Richardson said in the message to Y-12 employees. “Only employees in these specific job classifications/roles will be eligible to apply for the VSP.”
Y-12 Union Supportive of VSP
Richardson said B&W Y-12 is in the process of putting together the voluntary program that “is in alignment with CNS’ staffing desires.” He said the plan would be submitted to the National Nuclear Security Administration, but no details of the incentive program were immediately available. He said the Oak Ridge contractor intends to implement the workforce reduction plan as quickly as possible, “so that we do all we can to support the orderly transition to CNS.” John Woolery, the head of B&W Pantex, delivered a similar message to employees at the warhead assembly/disassembly center in Amarillo, Texas.
After rumors of a potential involuntary round of layoffs, the VSP was welcomed by Y-12 Atomic Trades and Labor Council President Steve Jones. “The Union always supports a VSP as a means to right size the workforce. It provides an incentive for workers who are ready, to voluntarily leave the payroll instead of laying off our younger, less senior workers who are the future for the plant,” he said.
No ‘Slash-and-Burn’ Strategy
CNS this week held the first couple of employee meetings at Y-12 to explain the upcoming changes. Haynes has emphasized that the new contractor will not come in and use a “slash-and-burn” strategy to cut jobs and benefits. Maintaining a sizable and capable workforce is essential to carrying out the missions safely and security, and that is top priority, he said. “You can come in and slash and burn, sure, but you’re going to take a great risk at delivering the mission and doing it securely and safely,” Haynes said in an interview. “Now, I’d be dishonest if I didn’t say there was a cost-reduction element to this because part of the cost-reduction plan involves a downsizing of the workforce,” he said, “but that’s not the driver of it.” The cost savings aspect is only a piece of the puzzle, he said.
According to Haynes, the CNS team carefully evaluated the workforce size that’s needed to carry out operations at Y-12 and Pantex and compared it to the current employment at the facilities. Upcoming job reductions will be focused in specific areas where there’s been a buildup of staff over time—such as finance—or where the consolidation of two sites into a single management structure will make some positions unnecessary, he said. “The end result is we feel we can make some adjustments to the workforce, but it’s a fairly minor amount. It’s less than 5 percent [of the total workforce],” he said. Haynes added: “There’s actually going to be hiring in certain areas.”
He noted there’s a particular need for more engineers, especially in the safety specialties and especially at Pantex, where there’s a lot of demand in the oil and gas industry that’s competing for top people. Besides Bechtel, the CNS partnership includes Lockheed Martin, ATK Launch Systems and security firm SOC. In addition, Booz Allen Hamilton was hired as a special subcontractor to develop more than 60 cost-cutting initiatives and help prepare for the combined management of the two plants 1,000 miles apart.
What Lies Ahead
CNS has continued to post more information on its transition website. In his latest message to employees, Haynes delivered this description of what lies ahead for the nuclear defense facilities: “Budgets for Pantex and Y-12 have been and will continue to be tight. Costs are going up, and facilities are deteriorating. In order to create a sustainable future, we must decrease costs and plow the savings back into facility improvements and investment in the workplace. To that end, 70% of any savings CNS achieves will go back to the government for reinvestment in the sites. The other 30% is available to CNS for earned fee, but only if we achieve certain production and cost reduction goals. We plan to share a portion of that fee with employees in the form of rewards, incentives, community support, and employee activities.”
More Key Personnel Revealed
Also, there was another leadership roll-out this week, providing information on other members of the leadership team. The newest officials named were William Tindal, uranium operations manager; Dave Beck, program integration manager; Maureen Mendez, chief financial officer; Janet Hunt, human resources manager; Colleen Leighty, chief information officer; and Mike Beck, mission engineering.
