Specific Options for Reducing Staffing Costs

This is part of the Reduction Committee Tasks.

Targets

Target #1 = $2,700.

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

Recommendations for target #1

5% pay cut

$1,162.58 per month savings effective March 1 (retroactive)

Unpaid leave for Laurel and Nathan in March (during vacation)

$598.95 for the month of March only

Marlin layed off

$943.80 per month savings which don't kick in until vacation pay is paid off (June or so)

Other staggered voluntary leaves of absences

$696.96 Laurel in April

$1,510.00 Jhasen in May

$1,510.00 Liane in June

$1,510.00 Martin in July

Voluntary hours reductions already scheduled

$377.52 Rick dropping to 20 hours May and beyond

Geiner leaving

$1,226.80 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	$1,761.53
April	$1,859.54
May	$4,276.90
June	$5,220.70
July	$5,220.70
August	$3,710.70
6 MONTH TOTAL:	$22,050.07
MONTHLY AVERAGE:	$3,675.01

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 closer to the $2,700 target in April, but we'd still be around $463 short.)

Some cuts are based on temporary measures.

The average cut is $3,675 (well over the target), but $944 of that comes from voluntary leaves, which are temporary by nature. If income is flat, that would leave us around $30 short of the $2,700 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.

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 = $47.19.

The following people have offered voluntary hours cuts:

Dave	1.75	x$47.19	$82.58
Geiner	7	x$47.19	$330.33
Jhasen	10	x$47.19	$471.90
Jon	12	x$47.19	$566.28
Laurel	4.5	x$47.19	$212.36
Liane	4	x$47.19	$188.76
Martin	10	x$47.19	$471.90
Michael	5	x$47.19	$235.95
Rick	6	x$47.19	$283.14
Shawn	8	x$47.19	$377.52
Subtotal	68.25	x$47.19	$3,220.72
Matthew	5	x$34.30	$171.50
TOTAL			$3,392.22

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:

Nathan	15 hours in March	$163.35
Laurel	40 hours in March	$435.60
Laurel	64 hours in April	$696.96
Jhasen	1 month (May)	$1,510.00
Liane	1 month (June)	$1,510.00
Martin	1 month (July)	$1,510.00
TOTAL		$5,825.91

Calculations

• Health and Dental cost: $283.00
• 32 hour collective member with health care = $1,793.08
• 32 hour collective member without health care = $1,510.08
• 20 hour collective member with health care = $1,226.00
• 20 hour collective member without health care = $943.80
• 20 hour/week intern = $686.00

Program and job function based cuts

Here is a partially filled out grid of essential jobs at Free Geek. Most of the numbers are based on obvious job descriptions and the current version of the schedule.

• 5 -- A main part of current job
• 4 -- Part of current job
• 3 -- Used to do / Fills in occasionally
• 2 -- Easy to learn in < 1 month
• 1 -- Hard to learn in < 1 month
• 0 -- Not practical

Only the 5s and the 4s are included on the grid. A more complete grid would give us a better picture.

Marlin and Geiner (both of whom are leaving) are separated out and not included in the bottom totals.

Jobs with low totals at the bottom are in need of more people who are capable of doing them. The people who currently do them would cause more problems if laid off.

Likewise, people with low number on the right are in need of cross training since they are currently unable to cover a wide variety of jobs if there were a layoff.

Marlin	5	0	0	0	0	0	0	0	0	0	0	0	0	0	0	5	0	0	0	10
Geiner	0	0	0	0	0	0	4	0	0	0	0	0	0	0	5	0	4	0	0	13
	Action		C7	HR	Kbees		Outreach			Reuse								Technocrats
Name	Fork Lift	Recycling	Bookkeeping	StaffSched	Adoption	Tech Support	Reception	Fundraisers	Grantwriting	Command Line	AdvTesting	BlackWhiteHole	Build	PB/BBBB	Printers	ReceivTesting	Store	InfrastrMaint	SWMaint	Totals:
Clout	0	0	0	0	4	0	0	0	0	0	4	0	0	0	0	0	5	0	0	13
Dave	0	0	0	0	0	0	0	0	0	5	4	0	5	5	0	0	0	5	0	24
Jhasen	5	5	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	10
Jon	5	0	0	0	0	0	0	0	0	0	0	0	0	0	0	5	0	0	0	10
Kathie	0	0	0	0	0	0	5	0	0	0	0	0	0	0	0	0	0	0	0	5
Laurel	0	0	0	0	5	0	4	0	0	0	0	0	0	4	0	0	0	0	0	13
Liane	0	0	0	0	0	0	0	0	0	0	0	0	4	4	0	4	0	0	0	12
Martin	0	0	0	0	0	0	0	0	0	5	4	0	5	5	0	0	0	5	5	29
Matthew	0	0	0	0	0	0	5	0	0	0	4	0	4	0	0	0	0	0	0	13
Michael	0	0	0	0	0	5	0	0	0	0	0	0	0	0	0	0	0	0	0	5
Nathan	0	0	0	0	0	0	0	0	0	0	4	5	4	4	0	0	0	0	0	17
Oso	0	4	5	0	0	0	0	4	5	0	0	0	4	0	0	0	0	0	0	22
Richard	0	0	0	5	0	0	0	0	0	0	4	0	0	5	0	4	0	5	5	28
Rick	0	0	0	0	0	0	0	0	0	0	4	0	0	0	0	0	5	0	0	9
Shawn	0	0	0	0	0	0	4	4	0	0	0	0	0	4	0	0	0	0	0	12
Totals:	10	9	5	5	9	5	18	8	5	10	28	5	26	31	0	13	10	15	10	222

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