Open letter to George

Contributed by anonymous



Dear George,

It is time for a real incentive.
LLNS has not been effective in understanding its situation or responding realistically. The expectation that 750 people would take the VSSOP incentive shows that you are getting terrible advice.

You have a serious short-term operating financial shortfall, even as you are expected to implement new costly infrastructure changes. Time to be hard-nosed and to think realistically.

You can fire 750-1000 people based on seniority. This will retain obsolete, highly-paid, tired personnel while releasing the lab's future.

Or you can structure a realistic incentive that will select the high-paid, while retaining the younger, cheaper, more energetic.

Consider. 750 folks is 10% of the labs population. About 15% of the the population is over 55 years old. Construct an incentive to move those people out. This means giving them the amount they will recieve at full-retirement (age 60), minus some amount for getting out early. Maybe 50% of the cost would do it. This might mean offering an incentive that is the equivalent of 1-2 years of service as an annuity that can be financed over time. SINCE IT RESULTS IN LONG-TERM DEFERRED SAVINGS, THE ANNUITY NEED NOT BE PAID ALL AT ONCE, BUT CAN BE FINANCED THROUGH SAVINGS IN REDUCED PAYROLL OVER MANY YEARS.

This is a tool that will allow you to get what you want. The deadheads that surround you may not tell you, but King George,you need this (unless you are bailing soon).