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

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)

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

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 April and beyond

Matthew down by 5 hours

$171.50 in April and May

Month by month this breaks down like:

March	$1,761.53
April	$2,408.56
May	$4,448.40
June	$5,220.70
July	$5,220.70
August	$3,710.70
6 MONTH TOTAL:	$22,770.59
MONTHLY AVERAGE:	$3,795.10

Target #2

This leaves us around $1,700 short of the round 2 target. To make this up in hours reduction, we'd need to cut an additional the equivilant of one full time collective member. 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 $1,700 -- 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 assumed.

Some cuts are based on temporary measures.

The average cut is $3,795.10 (well over the target), but $971 of that comes from voluntary leaves, which are temporary by nature. If income is flat, that still excedes the $2,700 but not much more.

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

Job performance based cuts

Job performance of all staff members was considered to the best of our ability. This proved difficult without a complete set of job reviews. It is more likely to play a part in round 2 of the cuts (should round 2 be needed).

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

Laurel and Nathan are currently scheduled for time off in March. Additional leaves are listed here.

Laurel takes some time in April

• Savings $800 (one time)

Shuffling people around

Adoption classes, LPI exams

Potential education income stream might get postponed

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 July

• Savings $1,450 (one time)

Shuffling people around

Oso or Liane could cover

Matthew could cover (Reception affected)

Nathan (Black Hole)

Voluntary Hours Reduction Scenarios

Calculated based on the assumption that the above recommendations are taken and in effect. We only looked at the major cuts (8 hours or greater), but there are smaller cuts we could look at as well.

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

Calculated 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

Coverage at front desk needed.

Layoff Dave

• Savings $1,867

Shuffling people around

Hardware Grants, Store and Advanced Testing, Build, Hardware Infrastructure, Distro development, system admin all affected.

Layoff Jhasen

• Savings $1,867

Shuffling people around

(see above)

Layoff Jon

• Savings $1,867

Shuffling people around

(see above)

Layoff Kathie

• Savings $1,226.80

Shuffling people around

Front desk coverage, orientation of data entry of other volunteers.

Layoff Laurel

• Savings $1,867

Shuffling people around

Adoption classes, documentation, LPI classes, growing the education program, PB/BBBB all need coverage, plus the queen knowledge bee would need to be replaced.

Layoff Liane

• Savings $1,584 - $1,867

Shuffling people around

PB/BBBB, BBBees, Front Desk, build. No CforK mainstay.

Layoff Martin

• Savings $1,745.89

Shuffling people around

Hardware Grants, Store and Advanced Testing, Build, Hardware Infrastructure, Advanced build teaching, software development all affected, GAP box maintenance, system admin.

Layoff Michael

• Savings $1,226.80

Shuffling people around

No tech support, distro affected, research of software systems and things like credit card system.

Layoff Nathan

• Savings $1,584 - $1,867

Shuffling people around

Potential future Homestreet income, Black Hole/White Hole and offbeat hardware, phone and network cabling, build, PB/BBBB, Front Desk backup person.

Layoff Oso

• Savings $1,867

Shuffling people around

Bookkeeping, grantwriting, build, recycling, invoicing, events, media, physical plant development, etc.

Layoff Richard

• Savings $1,867

Shuffling people around

Scheduling, database development, coder oversight, general organizational and financial development, PB/BBBB, GAP box maintenance, policy development.

Layoff Rick

• Savings $943.80 - $1,226.80

Shuffling people around

Store, store testing.

Layoff Shawn

• Savings $1,867

Shuffling people around

Intern management and recruitment, PB/BBBB, events, Front desk, documentation, policy development, groups volunteering, community service volunteers.