Difference between revisions of "Specific Options for Reducing Staffing Costs"

Revision as of 18:43, 2 March 2005

This is part of the Reduction Committee Tasks.

As we review everything, we need to spell out what specific measures we could take. We'll need to estimate the financial costs and savings of each, the other costs (staffing shortages, impact on programs, etc.), and the problems associated with each option.

Target #1 = $2,700.

Target #2 = $5,400 (including target #1).

Across the board wage cut

A 5% wage cut would save us $1,162.58. We spend $23,250 / month on non health care benefits.

Voluntary hours cuts

Monthly cost of collective member/hour/week = $52.96

The following people have offered voluntary hours cuts:

Dave    1.75    $92.68 
Geiner  7      $370.72 
Jhasen 10      $529.60 
Jon    12      $635.52 
Laurel  4.5    $238.32 
Liane   4      $211.84 
Martin 10      $529.60 
Michael 5      $264.80 
Rick    6      $317.76 
Shawn   8      $423.68 
SUBTOT 68.25 $3,614.52 

Matthew 5      $175.00
TOTAL        $3,792.00

Voluntary unpaid leaves of absence

The following people have offered voluntary leaves of absence:

Jhasen     1 month (May)   = $1,584
Laurel     1 week in March =    264
Laurel     2 weex Apr/May  =    528
Liane      1 month (June)  =  1,584
Martin     1  month        =  1,584
TOTAL                        $5,544

Job performance based cuts

32 hour collective member with health care = $1867
32 hour collective member without health care = $1584
20 hour collective member with health care = $1339
20 hour collective member without health care = $1056
20 hour/week intern = $700

Program and job function based cuts

Potential Recommendations

5% pay cut: $1,162.58 per month savings effective March 1 (retroactive)
Unpaid leave for Laurel and Nathan in March (during vacation): $608 for the month of March only
Marlin layed off: $1,056.00 per month savings which don't kick in until vacation pay is paid off (June or so)
Other staggered voluntary leaves of absences: $800.00 Laurel in April; $1,584.00 Jhasen in May; $1,584.00 Liane in June
Voluntary hours reductions already scheduled: $402.00 Rick dropping to 20 hours May and beyond
Geiner leaving: $1,056.00 per month when it starts, assuming we add 12 hours to Michael's schedule and get him to split time between printers and tech support

Month by month this breaks down like:

March	$1,770.58
April	$1,962.58
May	$4,204.58
June	$5,260.58
July	$3,676.58
August	$3,676.58
6 MONTH TOTAL:	$20,551.48
MONTHLY AVERAGE:	$3,425.25

This leaves us around $2,300 short of the round 2 target. To make this up in hours reduction, we'd need to cut an additional 46 hours from the schedule which would mean another layoff and hours reduction for remaining collective members. Since covering all available shifts will already be strained, this would mean cutting back programs of some sort.

Weaknesses of these recommendations

Cuts don't kick in fast enough: March and April don't meet the $2,700 round 1 target. It is not until May that we see the full savings. This could change significantly if Geiner leaves earlier than expected. (If Rick cuts his hours in April -- rather than May as assumed -- we could be near the $2,700 target in April, but we'd still be around $450 short.)
Some cuts are based on temporary measures.: The average cut is $3,425.25, but $762.67 of that comes from voluntary leaves, which are temporary by nature. If income is flat, that would leave us short in the long run.
There's a lot of work to be covered by less people.: With Geiner gone, Rick's hours reduced, and Marlin laid off, we've cut 48 hours from the weekly schedule that will need to be picked up by other staff. We will need to try to make things more efficient, recruit volunteers to do more work, etc. to counteract this.

Voluntary Leaves of Absence Scenarios

Jhasen takes off May

Savings $1,584 (one time)

Shuffling people around: Oso, Liane, Shawn, Laurel, and Richard could all cover (some need training); Matthew (would require Front Desk coverage); Jon (receiving); Nathan (Black Hole)

Liane takes off June

Savings $1,584 (one time)

Shuffling people around: Computers for Kids on hold; BBBees and PB/BBBB needs coverage

Martin takes off one month

Savings $1,450 (one time)

Shuffling people around: Oso or Liane could cover; Matthew could cover (Reception affected); Nathan (Black Hole)

Laurel takes some time in April

Savings $800 (one time)

Shuffling people around: Adoption classes, LPI exams; Potential education income stream might get postponed

Voluntary Hours Reduction Scenarios

Jhasen goes to 22 hours

Savings $503 / month

Shuffling people around: (see above)

Jon goes to 20 hours

Savings $604

Shuffling people around: BBBees coverage needed; Forklift operation (Jhasen and maybe Oso)

Martin goes to 20 hours

Savings $453 / month

Shuffling people around: (see above)

Rick goes to 20 hours

Savings $402

Shuffling people around: Dave, Martin, Richard; Oso, Liane, Shawn, Michael, Nathan

Shawn goes to 24 hours

Savings $402

Shuffling people around: PB/BBBB and Reception; Event coordination and volunteer outreach would suffer

Many people take off 3-4 hours

Savings $151-201 per person
$1,208-$1,610
People affected: Liane, Laurel, Michael, Jhasen, Jon, Martin, Rick, Shawn

Shuffling people around: (too complex to detail)

Layoff Scenarios

No Intern in Store

Savings $700

(see above)

No Intern at Front Desk

Savings $700

Geiner Leaves

Savings $1,867

Shuffling people around: Someone needs to be trained to cover printerland.; Front Desk coverage needed.

Layoff Jhasen

Savings

Shuffling people around

Layoff Richard

Savings

Shuffling people around

Layoff Oso

Savings

Shuffling people around

Layoff Shawn

Savings

Shuffling people around

Layoff Jon

Savings $1,867

Shuffling people around: (see above)

Layoff Liane

Savings

Shuffling people around

Layoff Laurel

Savings

Shuffling people around

Layoff Kathie

Savings

Shuffling people around

Layoff Dave

Savings

Shuffling people around

Layoff Michael

Savings

Shuffling people around

Layoff Meow

Savings

Shuffling people around

Layoff Nathan

Savings

Shuffling people around

Layoff Rick

Savings

Shuffling people around

@@ Line 89: / Line 89: @@
 === Weaknesses of these recommendations ===
 ;Cuts don't kick in fast enough
-:
+:March and April don't meet the $2,700 round 1 target. It is not until May that we see the full savings. This could change significantly if Geiner leaves earlier than expected. (If Rick cuts his hours in April -- rather than May as assumed -- we could be near the $2,700 target in April, but we'd still be around $450 short.)
 ;Some cuts are based on temporary measures.
-:
+:The average cut is $3,425.25, but $762.67 of that comes from voluntary leaves, which are temporary by nature. If income is flat, that would leave us short in the long run.
+;There's a lot of work to be covered by less people.
+:With Geiner gone, Rick's hours reduced, and Marlin laid off, we've cut 48 hours from the weekly schedule that will need to be picked up by other staff. We will need to try to make things more efficient, recruit volunteers to do more work, etc. to counteract this.
 == Voluntary Leaves of Absence Scenarios ==