Specific Options for Reducing Staffing Costs

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 $23,251 / month on non health care benefits. Cutting more than 5% would make it difficult for some people on staff to make pay for rent, bills, and food.

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
Subtotal	68.25	$3,614.52
Matthew	5	$175.00
TOTAL		$3,792.00

Calculations

• Total non health care cost for staff in January 2005: $23,251.18.
  • Intern cost: $1,443.90 (6.21%)
  • Collective cost: $21,807.28 (93.79%)
• Total staff hours worked per week: 479
  • Intern hours: 40
  • Collective hours: 439
• Cost per hour: $48.54
  • Cost per intern hour: $36.10
  • Cost per collective hour: $49.67
• Cost per hour after 5% wage reduction: $46.11
  • Intern: $34.30
  • Collective: $47.19

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

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. We're not offering recommendations for this extra $2,300 -- just the options.

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 a few dollars short of the round 1 target 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 (even assuming we add 12 hours somewhere to help cover printers). We will need to try to make things more efficient, recruit volunteers to do more work, etc. to counteract this. All of this will need to go on while we figure out a way to address the underlying problem of needing to increase income.

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

Calculated based on the assumption that the above recommendations are taken and in effect.

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

Calculate these based on the assumption that the above recommendations are taken and in effect.

Geiner Leaves

• Savings $1,867

Shuffling people around

Someone needs to be trained to cover printerland.

Front Desk coverage needed.

No Intern in Store

• Savings $700

(see above)

No Intern at Front Desk

• Savings $700

Layoff Dave

• Savings

Shuffling people around

Layoff Jhasen

• Savings

Shuffling people around

Layoff Jon

• Savings $1,867

Shuffling people around

(see above)

Layoff Kathie

• Savings

Shuffling people around

Layoff Laurel

• Savings

Shuffling people around

Layoff Liane

• Savings

Shuffling people around

Layoff Martin

• Savings

Shuffling people around

Layoff Michael

• Savings

Shuffling people around

Layoff Nathan

• Savings

Shuffling people around

Layoff Oso

• Savings

Shuffling people around

Layoff Richard

• Savings

Shuffling people around

Layoff Rick

• Savings

Shuffling people around

Layoff Shawn

• Savings

Shuffling people around