[Federal Register Volume 63, Number 238 (Friday, December 11, 1998)]
[Notices]
[Pages 68441-68445]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-32906]
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DEPARTMENT OF ENERGY
Planning Guidance for Contractor Work Force Restructuring
AGENCY: Department of Energy.
ACTION: Notice of final planning guidance.
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SUMMARY: The Department of Energy publishes Final Planning Guidance
that it has issued to its field organizations, which are responsible
for planning and implementing contractor work force restructuring at
defense nuclear facilities and other Department of Energy facilities.
The Final Planning Guidance supercedes interim guidance published for
comment in the Federal Register on March 5, 1996.
DATES: The changes made by the Final Planning Guidance will take effect
January 11, 1999.
FOR FURTHER INFORMATION CONTACT: Terence L. Freese, U.S. Department of
Energy, Office of Worker and Community Transition, WT-1, 1000
Independence Avenue, S.W., Washington, D.C. 20585; phone: 202-586-5907.
SUPPLEMENTARY INFORMATION:
I. Background
Pursuant to the Atomic Energy Act of 1954 (AEA), the Department of
Energy (DOE) owns defense nuclear facilities in various locations in
the United States. These facilities are operated for DOE by management
and operating contractors. As a result of the end of the Cold War, many
DOE defense nuclear facilities are undergoing work force downsizing and
restructuring as the result of changes in the activities at these
facilities.
Section 3161 of the National Defense Authorization Act for Fiscal
Year 1993, 42 U.S.C. 7274h, requires DOE to develop a site-specific
plan for restructuring the work force at any defense nuclear facility
where DOE determines that a change in the work force is necessary.
Defense nuclear facilities within the meaning of section 3161 include
(1) facilities conducting atomic energy defense activities involving
the production or utilization of special nuclear material, (2) nuclear
waste storage or disposal facilities, (3) testing and assembly
facilities, and (4) atomic weapons research facilities. The actual
execution of any work force restructuring plan is subject to the
availability of funds for that purpose.
On March 5, 1996, DOE published a notice of Interim Planning
Guidance in the Federal Register and invited comments from stakeholders
and the general public (61 FR 8593). The Interim Planning Guidance set
forth procedures and policies for coordinating work force restructuring
activities by DOE field organizations, pursuant to section 3161 and the
DOE's broad authority under the AEA (42 U.S.C. 161(i)(3) and 2201(p))
to develop generally applicable policies covering all aspects of
defense nuclear facilities. The Interim Planning Guidance was preceded
by use of preliminary guidance and extensive consultation with various
stakeholders, including DOE and DOE contractor employees,
representatives of bargaining units of employees, interested Federal,
State and local government agencies, educational institutions, and
groups in the communities that would be affected by restructuring at
DOE defense nuclear facilities.
DOE received written comments covering fifty issues from twelve
commenters on the Interim Planning Guidance. These commenters included
DOE employees, DOE contractors and contractor unions. DOE also sought
comments on the Interim Planning Guidance at a national stakeholder
meeting held in Atlanta, Georgia, on March 13-15, 1996. In response to
concerns raised with respect to the process for reviewing and approving
work force restructuring plans from DOE field organizations and other
stakeholders, a team of DOE Headquarters and field organization
representatives developed recommendations for streamlining the process
for plan review and providing additional flexibility for development of
such plans. Comments on subsequent revised drafts of the guidance based
on these comments and recommendations were sought at national
stakeholder meetings in Oakland, California, on April 9-11, 1997, and
Alexandria, Virginia, on June 17-18, 1998.
II. Discussion of Stakeholder Comments and Final Planning Guidance
The Final Planning Guidance is intended to streamline the process
for review and approval of work force restructuring plans, and to
provide increased flexibility for defense sites to meet the objectives
of section 3161 consistent with changing missions, new contract
mechanisms and business efficiencies. In addition, this document also
reflects revised Congressional direction with respect to funding
limitations for enhanced benefits under section 3161. Separate guidance
on implementing this Congressional direction was provided to field
organizations by the Office of Worker and Community Transition on March
2, 1998.
The Final Planning Guidance calls on each defense nuclear facility
to develop a work force restructuring plan that will establish general
strategies for work force restructuring as it may occur at a given
site. This new emphasis on a general strategy instead of a detailed
[[Page 68442]]
blueprint recognizes a shift in the nature of restructuring activities
from large episodic reductions primarily driven by changes in the
budget to restructuring that occurs on a smaller, but more frequent,
scale and is more directly related to project completion, changes in
skill mix requirements and improved business efficiency. In such an
environment, many stakeholders, including DOE Field Managers and DOE
contractors, commented that specific thresholds to trigger separate,
detailed plans were unworkable.
Many stakeholders perceived the itemized description of benefits
set out for consideration in the Interim Planning Guidance as
prescriptive rather than as suggestions for consideration by each
facility. In light of Congressional direction limiting the funding for
enhanced separation benefits under section 3161 to the Worker and
Community Transition appropriation, and recognizing the increasingly
varied requirements among facilities slated for early closure, those
implementing new contracting mechanisms, and those continuing to
utilize traditional management and operating contracts, it seemed more
appropriate for DOE to limit discussion in the Final Planning Guidance
to only those specific benefits that were prescriptive. Information on
best practices, including model legal documentation, in restructuring
will be provided through direct consultation between the Office of
Worker and Community Transition and stakeholders, as well as through
other published sources including the DOE's Annual Report on Contractor
Work Force Restructuring, the Office of Worker and Community Transition
web page at http://www.wct.doe.gov, and a handbook that the Office of
Worker and Community Transition is preparing.
III. Congressional Notification
Consistent with the Small Business Regulatory Enforcement Fairness
Act of 1996, DOE will submit to Congress a report regarding the
issuance of this notice of Final Planning Guidance prior to the
effective date. The report will note that the Office of Management and
Budget has determined that this notice of Final Planning Guidance does
not constitute a ``major rule'' under that Act. 5 U.S.C. 804(2).
IV. Review Under the National Environmental Policy Act
This guidance establishes procedures for work force planning. The
planning guidance is intended to increase consistency and streamline
reporting throughout the Department of plans for work force
restructuring. Implementation of the guidance will not result in
environmental impacts. The Department has reviewed this guidance in
accordance with its procedures for implementing the National
Environmental Policy Act, 10 CFR Part 1021 and has determined that this
guidance is covered under the Categorical Exclusions found at paragraph
A-13 of Appendix A to Subpart D of those regulations, which applies to
administrative, organizational or procedural guidelines. Accordingly,
neither an environmental assessment nor an environmental impact
statement is required.
Issued in Washington, D.C. on December 2, 1998.
Robert W. DeGrasse, Jr.,
Director, Office of Worker and Community Transition.
Final Planning Guidance for Contractor Work Force Restructuring
Table of Contents
I. INTRODUCTION
II. LEGISLATIVE PROVISIONS
III. GENERAL GUIDANCE
IV. WORK FORCE PLANNING
V. CONTRACTOR ROLES AND RESPONSIBILITIES
VI. DEVELOPING WORK FORCE RESTRUCTURING PLANS
A. When Plans Are Needed
B. Amendments to Established Plans
VII. ELEMENTS OF WORK FORCE RESTRUCTURING PLANS
A. Long-Term Strategic Plan and Work Force Implications
B. Stakeholder Input to Plans
C. Work Force Planning
D. Define Application of the Plan
E. Departmental Policy on Benefits
F. Local Impact Assistance to Communities
VIII. DEPARTMENTAL REVIEW AND APPROVAL
A. Approval of Plans
B. Notification and Approval of Plan Implementation
IX. Performance Evaluation
Appendices
A. Section 3161 and 3163 of the Fiscal Year 1993 National
Defense Authorization Act (Public Law 102-484, October 23, 1992)
B. Listing of Defense Nuclear Facilities
C. Preference in Hiring
D. DOE Order 350.1 and Department of Energy Acquisition Letter
No. 93-4
Planning Guidance for Contractor Work Force Restructuring
I. Introduction
The Department of Energy's Office of Worker and Community
Transition (the Office) has prepared this planning guidance to assist
Department of Energy (DOE or Department) field organizations to plan
for, and mitigate the impacts of, changes in the Department's
contractor work force.
This guidance supercedes the earlier interim guidance issued by the
Office on February 1, 1996, and published in the Federal Register on
March 5, 1996. This document is a product of the Department's
experience over the past two years--an extensive process of employee
and public stakeholder involvement in shaping our worker and community
transition policies.
This guidance provides common objectives for work force
restructuring while emphasizing the importance of a tailored approach
at each site to meet these objectives. This revision also addresses:
(1) formal comments received in response to the publication of earlier
guidance in the Federal Register; (2) steps to streamline and make more
efficient the process for development, review and approval of work
force restructuring actions; and (3) changes in Departmental
contracting approaches and development of long-range strategic plans.
Except as otherwise noted, this guidance is not intended to be
prescriptive. Cognizant field organizations have primary responsibility
for assuring planning and overseeing implementation of work force
restructuring. The Department's field organizations are in the best
position to consult with affected stakeholders on these plans, to
understand the unique needs of work force restructuring at field
facilities, and to develop work force restructuring strategies best
suited to each individual facility. The Office will develop a Handbook
for Contractor Work Force Restructuring that provides information on
experiences at DOE sites for consideration by field organizations.
II. Legislative Provisions
Section 3161 of the National Defense Authorization Act for Fiscal
Year 1993 (the Act) requires the Secretary of Energy to develop a plan
for restructuring the work force for a defense nuclear facility when
there is a determination that a change in the work force is necessary.
The plan is to be developed in consultation with local, state, and
national stakeholders, and submitted to the Congress 90 days after
notice of a planned work force restructuring has been given to the
affected employees and communities.
Section 3161 of the Act provides specific objectives to guide the
preparation of the plan to minimize worker and community impacts.
Relevant sections of the Act are included as Appendix A. DOE facilities
that have been determined to be defense
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nuclear facilities for the purposes of section 3161 are listed in
Appendix B. For reasons of fairness, the Secretary directed that the
objectives set forth in section 3161 should be applied to the extent
practicable whenever work force restructuring takes place in the
Department.
III. General Guidance
The Office encourages field organizations to utilize the
combination of work force restructuring strategies that will most
effectively accomplish a site's restructuring objectives. In developing
these strategies, field organizations are expected to consider best
practices in the public and private sectors. The cognizant field
organization should administer work force changes consistent with the
DOE Order 350.1 covering Reductions in Contractor Employment or any
subsequent applicable DOE Order. A work force restructuring plan
developed by the field organization should be consistent with program
objectives, budget constraints, contractual provisions, collective-
bargaining agreements, and other legal obligations. The plan should be
developed in consultation with the stakeholders at the affected
facility and other appropriate stakeholders to ensure, among other
things, the most effective expenditure of public funds.
IV. Work Force Planning
The primary objective of work force planning and restructuring is
to retain employees with the skills, knowledge and abilities necessary
to effectively and safely meet assigned and future missions within
budget constraints. Restructuring strategies must be closely integrated
with planning based on identified work force requirements. Effective
work force planning should consider both short-term requirements for
immediate tasks, as well as long-term requirements for skills based on
missions identified in strategic plans for the site. Improvements in
organizational and operational efficiency should also be considered,
including changes in internal organizational structure and contracting
mechanisms.
V. Contractor Roles and Responsibilities
The Department will of necessity seek the assistance of its
contractors in developing work force restructuring plans. Nevertheless,
the plans are Department of Energy products. In addition, it is
generally the Department's policy to make information available to the
public that has bearing on the plans and is available to the operating
contractors, unless such information is protected by law or regulation.
Contractors will have responsibility for implementing the provisions of
the work force restructuring plan subject to oversight from the
appropriate DOE field organization.
VI. Developing Work Force Restructuring Plans
A. When Plans Are Needed
In order to provide appropriate long-term planning of site
operations, and to allow potentially affected workers to know how their
situations may be accommodated, work force restructuring plans should
be developed that are not limited to a single episode of restructuring
but will apply for any restructuring that may occur at a particular
site. This planning differs from past practice where a new plan was
developed with each restructuring action over a certain threshold.
Plans may identify options that may be utilized in a particular
restructuring action, subject to the availability of funds.
The cognizant field organization for a non-defense site should
consider whether a work force restructuring plan is appropriate based
on the contracting arrangements at the site, the prospect for
significant work force change, the potential impact on the community,
and the extent to which provision of separation benefits beyond
contract requirements would be consistent with best business practices
and fair treatment of workers.
B. Amendments to Established Plans
When modifications of established site work force restructuring
plans are necessary due to changing circumstances, stakeholder input or
implementation experience, proposed changes in the established plan
shall be submitted to the Office for expeditious Headquarters review
and approval.
VII. Elements of Work Force Restructuring Plans
A. Long-Term Strategic Plan and Work Force Implications
Ongoing plans should identify a site's long-term strategic plan,
including anticipated closure and the anticipated work force
implications of that plan.
B. Stakeholder Input to Plans
Consultation with local, state, and national stakeholders is an
essential element of the work force restructuring process. Special
attention should be given to consultation with the existing work force,
their representatives, and local communities. Input should be solicited
and considered at appropriate points throughout the development of
plans for implementing work force restructuring. In order to facilitate
participation by stakeholders, the Office has made this Final Planning
Guidance available through the Federal Register and through electronic
means.
C. Work Force Planning
A description of the objectives and processes used to plan for
short-and long-term work force requirements should be included in the
plan. Plans should incorporate flexible work force planning and
retraining to minimize layoffs in the work force.
D. Define Application of the Plan
Each site has a unique mix of contractors and subcontractors
performing work for the Department. Work force restructuring plans
should identify the conditions under which categories of employees may
be eligible for particular benefits.
E. Departmental Policy on Benefits
It is the Department's policy that preference in hiring and
displaced worker medical benefits, are to be offered to all eligible
separating employees. Appendix C provides guidance that has been
developed for implementing preference in hiring. The guidelines for
displaced workers medical benefits are set out in DOE Order 350.1 and
Department of Energy Acquisition Letter No. 93-4, as modified by
memorandum on August 12, and December 2, 1993. These documents are
included as Appendix D.
Additional programs that may be provided to affected workers and
any applicable eligibility requirements should be fully described in
the plan. Plans should clearly state that enhanced benefits are subject
to availability of funds from the Worker and Community Transition
Appropriation. Plans should set out the considerations that will be
used to determine when requests to seek funds to implement enhanced
benefits programs will be considered, consistent with Congressional
direction. Prior to implementing or announcing any program which
anticipates providing enhanced benefits, field organizations shall
submit to the Office an estimate of the number of participants and
costs associated with a proposed benefit offering.
In implementing the objectives of section 3161 of the Act, the
Department recognizes a special responsibility to minimize the impact
of work force restructuring on employees who participated in efforts to
maintain the Nation's nuclear deterrent during the
[[Page 68444]]
Cold War. September 27, 1991, the day President Bush announced the
first unilateral reduction of the Nation's nuclear weapons stockpile,
has generally been recognized by this Department as the end of the Cold
War. In developing a work force restructuring plan, the following are
among the potential benefits that may be considered for affected
workers.
1. Programs to Minimize Layoffs
After work force planning has identified the classifications of
workers at risk, consideration should be given to strategies that
minimize involuntary separations while also retaining appropriate job
skills. Strategies should be selected based upon prior work force
planning and restructuring experience at the site and best practices in
the public and private sectors, and may include early retirement
programs, voluntary separation incentives, and retraining for new
missions, including cleanup.
2. Involuntary Separation
Each affected individual should be provided as much individual
notice as practicable of his or her termination. In some cases, a
minimum amount of specific notice is required by contract or
collective-bargaining agreement. Involuntarily separated employees
shall be fully advised of any benefits or services for which they are
eligible. Appropriate notification to workers, labor representatives,
and local, county and state governments shall be provided in accordance
with DOE Order 350.1, or subsequent Order, and the Worker Adjustment
and Retraining Notification Act (WARN), if applicable.
3. Programs to Assist Separating Workers
Requests for funding educational, relocation, and outplacement
assistance should be considered to minimize the social and economic
impact of work force changes, as well as a one-time construction worker
benefit.
F. Local Impact Assistance to Communities
The work force restructuring plan should be developed in
coordination with, and in support of, the regional development
objectives of communities significantly impacted by the Department's
downsizing. The local Community Reuse Organization should be contacted
in the development of the plan to address anticipated economic and
social impacts resulting from the Department's actions.
VIII. Departmental Review and Approval
A. Approval of Plans
By law, the Secretary submits work force restructuring plans
subject to the provisions of section 3161 to Congress, and thus, is the
official responsible for final approval. In order to reduce the number
of involuntary layoffs, and pending Secretarial transmittal of the plan
to Congress, enhanced benefits may be provided after receipt of written
approval by the Office. The Office will seek concurrence from the
affected program office or offices, the Office of General Counsel, and
the Office of Congressional Affairs prior to providing such approval.
It is the policy of the Department to obtain from employees who
separate under voluntary separation programs, including early
retirement incentives, a release of claims related to their employment
and separation. A sample release is available on the Office's web page
at http://www.wct.doe.gov. The cognizant field organization should
consult with the Office prior to approving enhanced benefits at non-
defense nuclear facilities. Draft plans should be submitted to the
Office for Headquarters concurrence prior to their release to
stakeholders.
B. Notification and Approval of Plan Implementation
Advance notification of intent to implement work force
restructuring actions should be provided as early as possible, to
maximize notification to the work force and the community, with an
objective of 90 days advance notice to Congress. This reflects the need
to be able to respond to changing business requirements and budget
uncertainties. Headquarters review of work force restructuring plan
implementation will take into consideration the time sensitivity of
actions to meet business requirements.
IX. Performance Evaluation
The Office of Worker and Community Transition, in consultation with
various stakeholders, has developed a set of performance objectives to
determine the effectiveness of work force planning and restructuring
activities. Those objectives--which are available upon request to the
Office--are used to evaluate the effectiveness of those activities.
Appendix A--Section 3161 and 3163 of the National Defense
Authorization Act for Fiscal Year 1993 (Public Law 102-484, October
23, 1992)
The Department of Energy is making the text available at http://
www.wct.doe.gov/owct/Documentation/sec.3161.html.
Appendix B--Listing of Defense Nuclear Facilities
The list below reflects facilities receiving funding for Atomic
Energy Defense activities of the Department of Energy, with the
exception of activities under Naval Reactor Propulsion. It is
recognized that these facilities have varying degrees of defense
activities, ranging from a total defense dedication to a small
portion of their overall activity. This may cause certain
difficulties in implementing the intent of the section 3161
legislation. Regardless, this listing will be used by the Office for
possible application of funding received for defense worker
assistance and community transition purposes.
Kansas City Plant
Pinellas Plant
Mound Facility
Fernald Environmental Management Project Site
Pantex Plant
Rocky Flats Environmental Technology Site, including the Oxnard
Facility
Savannah River Site
Los Alamos National Laboratory
Sandia National Laboratory
Lawrence Livermore National Laboratory
Oak Ridge National Laboratory
Nevada Test Site
Y-12 Plant
East Tennessee Technology Park
Hanford Site
Idaho National Environmental Engineering Laboratory
Waste Isolation Pilot Project
Portsmouth Gaseous Diffusion Plant
Paducah Gaseous Diffusion Plant
Appendix C--Preference in Hiring
Section 3161 provides that, to the extent practicable,
terminated employees at a defense nuclear facility should receive
preference in filling vacancies in the work force of the Department
of Energy and its contractors and subcontractors. The Department has
determined that employees must be identified as having helped
maintain the Nation's nuclear deterrent in order to qualify for this
preference. The preference should be honored by all prime
contractors, and subcontractors whose contracts with the Department
equal or exceed $500,000 in value.
The Department has established the following criteria for
determining eligibility for the hiring preference. The individual
must be a former employee who (1) was involuntarily terminated
(except if terminated for cause); (2) meets the eligibility
standards described below; and (3) is qualified for the job at the
time the work is to begin. Where qualifications are approximately
equal, eligible individuals will be given preference in hiring.
However,
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the preference will be administered consistent with applicable law,
regulation, or executive order, and collective-bargaining
agreements. This preference is not immediately applicable through an
outsourcing action or follow-on contract in which the current
employees are first offered their same or similar jobs with the
replacement contractor in order to avoid a layoff.
An individual's hiring preference continues until termination by
the action (or inaction) of that individual. Initially, and on an
annual basis thereafter, eligible individuals must certify their
desire to retain their hiring preference. Actions that would
terminate an individual's hiring preference include: voluntary
termination or termination for cause from a position that was
obtained through the exercise of the preference, or failure to
comply with the annual certification requirement.
Each field organization should develop procedures to ensure that
the hiring preference is being honored by all prime contractors and
designated subcontractors. Field organization procedures should also
describe how the Job Opportunity Bulletin Board System is to be
utilized by affected contractors and eligible individuals.
Eligibility Criteria
A. Regular Employees
1. Must have been working at a defense nuclear facility on
September 27, 1991;
2. Must have worked full-time (or regular part time) at a
facility from that date through the date of the restructuring
notification; and
3. Must have been involuntarily separated other than for cause.
B. Intermittent Workers, Including Construction Workers
1. Must have worked at a defense nuclear facility on or before
September 27, 1991;
2. Must have worked at a facility within 180 days preceding the
work force restructuring notification;
3. Must have worked at a facility a total time, including time
worked prior to September 27, 1991, equivalent to an employee having
worked full-time from September 27, 1991, to the date of the
restructuring notification, or have actually worked the industry
standard of full-time from September 27, 1991, through the date of
the restructuring notification; and
4. Must have been affected by the announced restructuring within
a reasonable period of time (one year is suggested). For an
intermittent worker, this includes the interruption of a project
before its anticipated completion, or the completion of the
assignment or project without prospect for a follow-on assignment at
the site where the employee had a reasonable expectation of a
follow-on assignment.
Appendix D--Department of Energy Order 350.1
Contractor Human Resource Management Programs, September 30, 1996
Chapter 1--Labor Relations
Chapter 2--Labor Standards
Chapter 3--Reduction in Contractor Employment
The Department of Energy is making the text available at http://
www.wct.doe.gov/owct/Documentation/350order.html.
Department of Energy Acquisition Letter No. 93-4
The Department of Energy is making the text available at http://
www.wct.doe.gov/owct/Documentation/acq93.html.
[FR Doc. 98-32906 Filed 12-10-98; 8:45 am]
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