Source:
Weapons Complex Monitor, Volume 22 No.2, January 14, 2011
DOE CONSIDERING HOW TO SPEND
SAVINGS FROM CONTRACTOR PAY FREEZE
Freeze Initially Described as ‘Sacrifice’
The Department of Energy has begun quietly examining
how to spend the savings expected to be generated through
a recently enacted two-year freeze of contractor employees’
pay levels. The move was outlined in an e-mail sent
two weeks ago to senior DOE officials from the Department’s
Chief Financial Officer, Steven Isakowitz. “We
need to solicit input from the M&O contractors on how
they would propose reinvesting the savings from the pay
freeze,” Isakowitz wrote in the Dec. 29, 2010, message,
obtained by WC Monitor. Isakowitz also said that such
information would be used to “to finalize FY11-12 budget
decisions.” It remains unclear how much money DOE
expects to save through the pay freeze, which went into
effect at the start of this year and impacts approximately
75,000 workers at 28 sites.
Isakowitz’s message came approximately two weeks after
DOE announced the pay freeze (WC Monitor, Vol. 21 No.
54). In its announcement, though, DOE did not make any
mention of plans to reuse the savings expected to be
generated. Instead, the pay freeze was proposed in a spirit
of shared sacrifice, following the Obama Administration’s
decision to institute a similar freeze for federal workers.
“As our nation continues to recover from these challenging
economic times, households and small businesses across
the country are making sacrifices,” Secretary of Energy
Steven Chu said in the Dec. 17, 2010, announcement. “In
this spirit, we are asking our contractor employees, who
are doing important research, operations, and environmental
cleanup work, to join the federal workforce in playing
a part.” DOE did not return calls for comment.
25 comments:
The beauty of this whole fiasco is that it won't save one thin dime. We're already being asked at my lab how we should spend the money that won't go to raises. From all appearances it will simply be moved to overhead, with the result that in effect the overhead rates will *increase* and no money at all will be saved.
It's just incredible. This has nothing to do with saving money and everything to do with looking good on TV.
What a pathetic bunch we have in DC.
I know how the lab M&O contractors can spend this "saved" money at the contrator sites. Hand it out as raises to their employees to help with morale... you frigg'in DOE idiots.
This article demonstrates the complete insanity for DOE HQ and their unwavering desire to punish their contractor workforce by making them take a pay freeze that saves DOE no money.
No other government department instituted a pay freeze on their contractors. None. Only DOE. And the only thing it accomplished was to destroy worker morale.
Heckavajob, DOE. Stupidity at it's very finest, Dr. Chu!
“We need to solicit input from the M&O contractors on how they would propose reinvesting the savings from the pay freeze,” (DOE CFO, Steven Isakowitz)
Let me throw out a wild ass guess -- LLNS and LANS executive management will suggest it be used to beef up the LLC executive bonuses during the next two years from 20% to 200%.
Least we forget, the executive bonuses weren't frozen or reduced by the DOE salary freeze mandate on DOE contractors. Of course, it may be wise for the lab upper management to keep hush-hush about all this and bury it under the label of "proprietary corporate information".
I hope this memo gets wider postings around the labs. The employees who got shafted by the DOE need to know just how stupid this new policy really was.
I sent an email today to our senators and representative in congress asking why our raise is being spent else where. I suggest everybody reading this blog do the same (including anybody else they can recruit).
It was obvious that Chu was only joining the Federal worker "pay freeze" as a political statement. This would have been a great opportunity for the government to actually not spend this extra money. Now he's asked the DOE Lab Directors where they want to spend the money. Why? Incidentally, we still have no energy policy and he's got Yucca Mountain "stuck in the mud". He's making O'Leary look like real leader.
Landscaping for NIF. It's looking pretty ragged over there.
Guys you haven't seen anything yet. It's going to be 5 years without a pay raise. Do nay of you understand how this is going to affect TCP-1 and you social security if you are within five years of possible retirement? This was all so very well planned from the top down.
http://www.fedsmith.com/article/2713/fiveyear-pay-freeze-federal-employees.html
Working for the federal government is looking like an increasingly bleak proposition.
A 2 year contractor pay freeze (soon to be extended by 5 more years) that saves no money and de-moralizes the troops.
Way to go, Dr. Chu.
I wouldn't mind a pay freeze if the money was used to pay down the deficit. Why that isn't the case is mind boggling.
I do my part of sharing the sacrifice by heading home early, leaving some of that ol' sacrifice on my desk undone to share again tomorrow.
Judging from the slow response from many, the sacrificial strategy is shared. (must be some Sun Tsu principle here, "be like the water, my sacrificing disciple, while I enjoy my concubine")
substantially equivalent, you'd say.
The ignorant Dr. Chu.
sets back Asian science a decade.
wait, no, that's American science....
watching this monkey reminds me of something Vinegar Joe Stillwell said.
The workers in China are amazing, the leaders, not so much....
So where is the savings other than screwing us TCP-1 people when it comes to our pension. Just think it won't be long before they'll tell us Oh BTW your pay is going to be frozen for three more years for a total of five years. Have a good day and thenks
Funny how this important article never made it to the "News" section of the NNSA weapon labs' web pages.
I understand another big truck load of manure is being delivered so that the mushrooms can grow extra large next year.
Lets see, use my $4000 to buy ammo for the Miniguns. Then let folks go to the range at S300 and play.
Incomes Policy:
(http://en.wikipedia.org/wiki/Incomes_policy)
When the price of a good is lowered artificially, it creates less supply and more demand for the product, thereby creating shortages.
The Labs need to prepare for shortages in "world class" "best and brightest" scientists and engineers who want to work at the Labs, especially as the economy recovers and competing industries lure these candidates to workplaces without abusive polygraphs, clearances, drug testing, suffocating bureaucracy and frozen wages.
It's obvious that no one in the Government thinks nuclear counter-terrorism, the stockpile or non-proliferation is too terribly important.
Street protests seems to work in Egypt:
Egypt approves 15 percent raise for govt employees
AP – Feb 7
CAIRO – Egypt's embattled regime announced Monday a 15 percent raise for government employees in an attempt to shore up its base and defuse popular anger...
Better yet, hold your nose and unionize. Have people noted that the union workers at the labs are NOT being held to the 2 year (+5 additional years coming) wage freeze?
Without a strong union (no matter how distasteful that may be), the scientists at the NNSA labs have no hope in holding back the declining salaries, pensions and benefits that are headed their way. NNSA and their LLCs only respect unionized strength and lawyers, not whining.
They are thinking that frozen wages give savings that can be reinvested? This is not only unethical, but they are implying that human capital is less valuable than new found investments. It also makes no business sense, you can not reinvest savings you never had. The gov is broke.
The deficit ballooned when our government was raided by corporate thugs who sent the Treasury funds into wall street. Now we pay the price as they swim in their average 480000$ bonuses. Hank told us it was either that or face
martial law in America. What a con. You really want to take a pay cut to help the deficit, knowing it was created to feed wall streets rich? Why not roll up your money and send it directly to Goldman instead?
Why not roll up your money and send it directly to Goldman instead?
February 8, 2011 12:49 AM
Better yet, send the "savings" from your lab pay freeze directly to Riley Bechtel. I'm sure he would appreciate the kind gesture. You might even get a summer invitation to the next "Bohemian Grove" party!
our government was raided by corporate thugs
February 8, 2011 12:49 AM
Jeez, are you stuck in the 60's or what?
Has DOE's Dr. Chu decided how to spend the money from the lab salary freezes that his "valued" workers have so generously donated to their upper management "for profit" teams?
Steven Chu is hiding behind closed doors on the issue of spending contractor's pay freeze money on other "things" at the National Labs - things that already have budgets. Lab officials are trying to work with him and are pleading for him to lift the pay freeze for next year and RIGHTLY give hard working contractors their raise. Will he step up?
And where is the rest of the government in this? Are they ignoring the sham that Chu has pulled off?
Keep this topic going. Chu needs to be exposed.
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