Earlier scenarios had called for possible furloughs at the Y-12 National Security Complex in response to automatic federal budget cuts that went into effect March 1—the so-called sequester—but plant officials said they no longer expect the temporary layoffs.
However, B&W Y-12, the plant’s managing and operating contractor, said it is implementing spending reductions, including in summer intern and educational assistance programs. The company is deferring employee award benefits for services, performance, and special recognition; and suspending upgrades to personal computers, wireless projects, and the information technology infrastructure. In addition, some discretionary travel, professional development training, and materials and supplies purchases will be significantly reduced, B&W Y-12 said in a statement.
“We have sought to minimize the impact of these cuts to our mission and to our employees, and although we no longer expect that furloughs will be necessary, some of the cuts we are making directly impact our workers,” the company said.
The contractor said it has provided the National Nuclear Security Administration with its plan to address a significant funding reduction related to the sequester through the end of the fiscal year.
“Although Y-12 has been managing its resources during the year by limiting procurements, travel, and hiring, additional changes are needed,” B&W Y-12 said.
The company said it will be watching purchases “very carefully while ensuring that the site continues to operate at the highest levels of safety and security, and we will address additional changes in budget guidance, if any, as we receive it.”
On the eve of the sequester at the end of February, B&W Y-12 General Manager Chuck Spencer had said the Y-12 work week could occasionally be reduced to 30 hours for many employees between April and October as part of a budget-cutting plan. Other officials announced a range of other possible consequences, including about 1,400 furloughs at U.S. Department of Energy contractors in Tennessee, up to $100 million in funding cuts at Oak Ridge National Laboratory, and $23 million in budget cuts at the Tennessee Valley Authority.
The sequestration was approved in the Budget Control Act of 2011 and meant to encourage compromise between Democrats and Republicans on deficit-cutting measures. The cuts, which include $85 billion in reductions on defense and domestic spending in the fiscal year that ends Sept. 30, were delayed at the beginning of the year but took effect March 1.
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