DOE Has Acknowledged Proposed Funding Cut Could Lead to Layoffs
Mike Nartker
WC Monitor
2/6/2015
The Department of Energy’s proposed Fiscal Year 2016 funding cut for D&D efforts at the Portsmouth Gaseous Diffusion Plant, which is set to make workers there worried about the fate of their jobs for another year, is already hurting employee morale at the site, a local labor union leader said this week. DOE’s request for next year would provide $167 million funding for D&D work at Portsmouth, a cut of approximately $49 million from current funding levels and one that a senior Department official said this week could result in a workforce restructuring at the site. “It is hard on morale. We can’t plan anything, so it is hard to motivate people to continue with meaningful, productive work,” Herman Potter, President of United Steelworkers Local 689, told WC Monitor. “This is very frustrating for us,” Potter added. “We have great opportunity by having support of the community, labor and management. We just need an adequately funded, well-defined plan in order to be successful.”
DOE’s proposed budget for the Portsmouth D&D project next year has also been met with criticism from members of Ohio’s Congressional delegation. “I am disappointed that the President’s budget failed to honor his commitment to Piketon. This failure to provide the funding needed to maintain the accelerated cleanup schedule will not only threaten jobs in Southern Ohio, but could also cost the federal government billions of dollars by extending the length of the cleanup,” Sen. Rob Portman (R-Ohio) said in a statement.
In a separate statement, Rep. Brad Wenstrup (R-Ohio) said, “This Administration has once again muddled its way through another budget proposal, failing to grasp the need for sustained certainty with a robust funding plan to continue an accelerated cleanup operation. The federal government has made a commitment to get this facility usable for the people of Pike County and the region, and I will continue fighting in Congress to get this project completed on time.”
Portsmouth Workers Faced Layoff Threat Last Year
Portsmouth D&D workers faced the threat of significant layoffs last year, when site contractor Fluor-B&W Portsmouth, LLC, warned that it would have to cut about a third of the site workforce—a total of 675 positions out of the project’s then-workforce of approximately 1,900 employees—heading into FY 2015 because of budgetary concerns. FBP was able to largely avoid such layoffs, though, after lawmakers provided an additional $76.4 million as part of the final FY 2015 appropriations legislation.
In a call with reporters earlier this week on DOE’s FY 2016 request, acting Assistant Energy Secretary for Environmental Management Mark Whitney acknowledged the proposed funding level for the Portsmouth D&D project could lead to job cuts. “Of course any time there are reductions in funding from one fiscal year to the next, there are prospects of potential layoffs. So yes that is something we’ll have to look at,” Whitney said, adding, “We’re really focused on doing the D&D work at Portsmouth. There’s process gas equipment removal work there that’s ongoing and will continue to be funded.”
When asked if DOE’s latest request would impact employee morale, FBP spokesman Jeff Wagner said late this week, “We will remain focused on accomplishing DOE’s mission safely and efficiently with employee morale in mind despite any concerns about available funding for the D&D project.”
DOE Hopes to Raise Extra $160-180 Million Through Uranium Transfers
Whitney also said this week that along with the funding to be requested from Congress, DOE currently expects to raise $160-180 million through its uranium transfer program that provides excess uranium to FBP, which then sells the material and uses the proceeds to fund work. Potter questioned, though, DOE’s ability to factor the uranium transfer proceeds into planning for the Portsmouth D&D project given fluctuating uranium prices. “I appreciate Mr. Whitney being an optimist. However, the barter agreement can fluctuate to such a great extent that it is not practical to establish well-defined cleanup plans,” Potter said.
Potter also questioned DOE’s expectation that some of the potential layoffs that could occur in FY 2016 may be able to be mitigated by DOE’s plans to begin construction of a planned on-site disposal cell for the Portsmouth D&D project. “In regards to the layoffs being mitigated by the building of an onsite disposal cell, [it] is a bit premature,” Potter said. “It is my understanding that there may be issues that would prevent the construction of the cell. Also, the current workforce would not necessarily be those who construct the on-site disposal cell so the comment that layoffs would be mitigated is a misrepresentation of the status of the site and a clear demonstration that the DOE currently does not have a well-defined plan to fund the cleanup to completion.”
