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Monday, August 25, 2008

2000 people in 2 years!

Contributed by anonymous:

I ran across this in the May 15, 2008 minutes (www.ucop.edu) of the UC Regent's Committee on Oversight of the DOE Labs... it's the last sentence that should give us all pause....

"Mr. Darling (UC Executive Vice President) reported that the Livermore laboratory is facing a $280 million funding shortfall this fiscal year resulting from a variety of components. These include a $50 million increase in inflationary costs, a $100 million reduction in federal funding due to the National Nuclear Security Administration’s budget reductions for Livermore, and items associated with the awarding of the new contract, the first of which is $86 million in increases mainly for retirement and health benefits compared to the costs the laboratory would have absorbed if it had remained part of the University. The second is $44 million in increased management fees and expenses that DOE agreed to provide to the winning contractor. To accommodate the shortfall, the laboratory is reducing both its operational and labor costs, but as the majority of its budget is related to its employees, the laboratory is being compelled to reduce its workforce by 2,000 employees over a two-year period."

3 comments:

Anonymous said...

Well, 981 people were counted to have left voluntarily. Then 500 from the supplemental labor force, and 535 career, and an extra 100(ish) flex. Plus the 50 per month leaving voluntarily for the last 2 months, and probably the last month of the FY means another 150. So it seems that ~2166 employees will have left or been laid off in year 1! So they're well ahead of schedule if this was supposed to take 2 years!

The overheads and poor management have created a new problem; soon their won't be enough scientists left to bring in any money at all into the lab. I was warning management of this death spiral for the last 2 years - they either didn't listen, didn't care, or were basically powerless to act.

Anonymous said...

You left off the last three sentences in the paragraph...

"Attrition, not filling vacancies, and voluntary
employee separations have eliminated 981 positions. Five hundred employees
were laid off from the supplemental labor force and flexible-term workforce of
largely temporary and contract employees. Five hundred thirty-five layoffs will occur from the career workforce."


Since these are the May minutes, most of the separations have already occurred, however the question still remains in my mind is this. Since we know FY-09 budget is no better than FY-08 and taxes are going up why wouldn't ULM let another 2000 people go in FY-09? Lets get on with the downsizing exercise and may it continue into FY-10.

Anonymous said...

Only 2000 people in 2 years? Wow, I think I hear the voice of an optimist talking.

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