National Defense Authorization For Fiscal Year 2006

NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2006 -- (Senate - November 04, 2005)

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Mr. SESSIONS. Mr. President, I thank Senator Allard for his leadership in the Senate, his superb leadership on the Committee on Armed Services. We miss him. But he is also on the very important Committee on Appropriations. I am sure he had a painful decision to make, but I am sure it is a decision in which his constituents will join in his decision to leave us and go to Committee on Appropriations.

The Senator knows this issue because he dealt with it for so many years. In particular, he used to chair the subcommittee that I now chair that deals with the issue. He has been committed to dealing with and promptly and effectively eliminating the difficulties at Rocky Flats. Our country is in his debt and the debt of those people who have helped make the cleanup possible. Therefore, the Senator knows why I am most reluctant to oppose his amendment as written, but I must do so. I share a few thoughts about it.

The amendment reaches into a relationship between contract employees for the Government who were performing environmental cleanup and their employer, which was a private contractor, Kaiser Hill. Kaiser Hill won this contract with the Department of Energy to perform the cleanup work.

They hired people under certain terms and agreements in a negotiated contract with their employees. They were hired under that basis.

So, in effect, the Government is undertaking now to modify, amend, alter, and fund additional moneys that relate to that contract between the contractor and the employees. It directs the Secretary of Energy to instruct Kaiser Hill to grant retirement and health benefits to employees which those employees would have earned if the cleanup had taken longer than it actually did.

The cleanup of Rocky Flats did not take as long as some predicted, but everyone knew this was a contract that would end promptly or at least at a certain date in the future. It came in quicker, for which everyone is delighted. But there was no doubt people knew it was not a permanent, lifetime contract.

So Rocky Flats is no more. Our country is the better for it. If you go to the site, you will see, as Senator Allard has shown, an empty space on that Colorado plateau. The workers for the most part have dispersed and gone on to other jobs. Many Government contracts complete early or do not run as long as originally anticipated. That is a fact. We cannot start down the road of altering the benefits of contractor workers when this happens, particularly when we have a contract that we know is not going to be for an extended period of time.

Also, I would call to the attention of all our Members that the Government and the contractor were not unaware of this problem, and they advanced 1 full year of credit toward retirement and health care benefits for every employee who was terminated. They also realized at some point that the contract was going to be terminated early.

So union negotiations took place, and an agreement was reached. It was agreed that,based on the termination date, additional funds would be paid to compensate the employees. As I understand it, $4,200 turned out to be the bonus, the incentive package, payment that they received as a result of completing the contract early. In other words, it gave them cash money they could use as a benefit or money they could utilize to transition to another employer.

The Department of Energy is very concerned that this amendment alters the bargain struck between Kaiser Hill and its employees. Most of the Kaiser Hill employees were covered under collective bargaining agreements, and staggered layoffs were anticipated as the cleanup neared.

I would like to offer, Mr. President, for the RECORD, and do offer for the RECORD, a summary of the benefits that were made available to the employees as a result of the anticipated early termination of this contract. I ask unanimous consent that summary be printed in the RECORD.

There being no objection, the material was ordered to be printed in the Record, as follows:

Rocky Flats Employee Benefit Initiatives

The Department of Energy has instituted, through its closure contractors, numerous incentives to reward employees for accelerating closure. Rocky Flats-Kaiser Hill has implemented many benefit initiatives and has dedicated a significant percentage of their fee to support closure. The following lists the initiatives:

Retirement Plan Improvements--A ``Rule of 70'' was put in place that allows a laid off employee to retire if their age and years of service equal at least 70 and the employee is less than age 50. This was reduced from the ``Rule of 80.'' This reduction results in an investment of tens of millions of dollars in additional retirement benefits provided to workers. The Rule of 70 allows employees access to retiree medical coverage. Upon layoff, they will be eligible for a reduced pension benefit which they have the option of taking in a lump sum distribution.

Robust Workforce Transition Program--This program was implemented to provide many services, including an onsite Career Transition Center, job search training, resume development, counseling, job fairs, and financial planning. Approximately 2000-2500 people took advantage of this program over the last two years.

Severance Pay for Steelworkers--Lump sum severance pay was provided for steelworkers. Workers receive one week severance pay for every year of service up to 20 years plus an additional lump sum amount. 313 workers received a $5,000 lump sum payment and 358 workers received $7,000. (The amount was increased in October 2004).

Bonuses--880 steelworkers received up to $4,200 in performance bonuses. 365 salaried employees receive several thousands in bonuses as well. On-the-spot bonuses are also provided.

Improved Savings Plan--The 401(k) program was revised to allow hourly steelworkers employees immediate plan participation, and a Company match after 1 year of service. This of course is in addition to traditional pension program.

Enhanced Tuition Reimbursement Program--This program provides funds for education and retraining in non site specific careers for employees. This is available for two years after an employee is terminated.

Entrepreneurial Resource Program--This program provides up to $5000 assistance for new business endeavors.

Leave Incentives--This program removes caps on paid leave accrual, which allows employees to bank unused vacation time; this provides employees with the opportunity to build an additional financial cushion.

Relocation Incentives--This is provided for those who relocate to another DOE site. Actual cost or $5,000 is available. This is available for two years after an employee is terminated.

Mr. SESSIONS. Mr. President, I say this: This was anticipated. Compensation for early termination was negotiated and agreed upon. And at whatever date you choose, some will be out of it, and some will be in it.

So I note this: In the Deficit Reduction Act we just completed yesterday, we had a lot of talk about the fiscal situation in which this country finds itself. There was debate about the hard choices we face as a nation so we do not burden our children and grandchildren with obligations that, in retrospect, were not wise.

I respect my colleague from Colorado as much as I respect any Senator in the Senate. I commend the workers at Rocky Flats for what has been achieved. I am proud of that. But I believe, as we face this amendment as written, the concerns of the Department of Energy are legitimate, principled concerns. They are not skinflinty concerns, mean-spirited concerns, but a genuine concern that this is not a road we need to go down.

What if we agree to build so many aircraft and we cut that number in half? We do that every day. The number of ships, contracts are terminated based on the terms of those contracts, and closure penalties are paid, and we go on. We do not need to have the politicians come in and redo those.

So I respect my colleague from Colorado. As written, I am of the belief the Department of Energy's concerns are justified; therefore, I must reject and ask my colleagues to not support this amendment.

I thank the Chair and yield the floor.

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