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Labor Is Not Fungible
We’ve already looked at examples of the College’s misguided and costly egalitarianism in other areas (housing, parking and benefits), and a recent College missive shows that the idea still has currency. Last week, Director of Human Resources Traci Nordberg mailed an offer of generous incentives to Dartmouth staffers touting early retirement, voluntary layoffs and reductions in hours.
Where’s the problem, you ask? Well, to whom are these offers most attractive? Simple: to anyone who can easily get another job somewhere else; in other words, the College’s most skilled and valuable staff members. In contrast, people who somnambulate in the cocoon of Mother Dartmouth won’t risk exiting into the real world.
If the adminstration wants to trim costs and show generosity to departing staff members, as a first step it should identify the people it would like to see leave our workforce. Any objective observer will understand that not all employees are equally gifted and hard-working. The College should offer departure incentives only to those people who are below average. In this way the administration can cut costs and increase the overall quality of the staff.
Will some feelings be hurt? Undoubtedly. But if you don’t pick and choose intelligently, then the entire College will be hurt. This is not Lake Wobegon.
Note: Isn’t it amazing how the phrase below average stings in our modern world, and especially at Dartmouth? Valuing one staff member over another seems, at least, anti-democratic, yet making this kind of choice is essential to maintaining and improving the College. We should have the courage to keep that fact in mind.
From: Traci K. Nordberg [mailto:human.resources@Dartmouth.EDU]
Sent: Thursday, December 17, 2009 4:28 PM
Subject: Staff Options
Dear Colleagues,
As we work through these difficult times, staff and faculty continue to come
forward with constructive suggestions to reduce costs. Many of you have
suggested that the College offer a retirement incentive or other staff options
that would contribute toward budget savings. The following options were
developed in response to those ideas.
Voluntary Retirement Incentive Offer
Eligible staff members, including those in professional schools and in
grant-funded positions, will be at least 55 years of age with 10 years of
service at the time of retirement. Eligible employees will also receive an
email from Human Resources outlining the incentive details. Discussions are
underway with the union about whether the offer will be made to its members. To
participate in the retirement offer, eligible employees must notify their
supervisors and Human Resources of their intent to retire under this program.
Notifications will be binding and must be made in writing. Letters must be
received by Human Resources by Jan. 15, 2010, and can be sent via email
human.resources@dartmouth.com, mail (Hinman Box 6042) or delivered in person
(Human Resources, 7 Lebanon Street, 2nd floor, Hanover, NH 03755). Those who
accept the offer will retire before June 30, 2010 on a date mutually agreed
upon with the employee’s supervisor. A lump sum payment of nine month’s
pay (including 7% benefit where applicable) will be paid upon retirement.
Employees can ask questions and make appointments with the Benefits Office by
calling 646-3588. Retirement vendors will available the first week in January
to offer individual consultations.
Staff Option for Layoffs and Reductions-in-Hours
The “Staff Option” is a new program allowing employees who do not meet the
age or service requirements for retirement to apply for a lay-off package.
While consideration will be given to those who apply, divisions will make the
final decision on whether a position can be eliminated, thereby resulting in a
layoff. The layoff package and policies will apply to these individuals as
well.
We also invite requests for reductions-in-hours. These may come in the form of
a weekly schedule or annual reduction in position. Examples include going from
40 to 30 hours per week, or from a twelve month position to a ten month
position. Acceptance of these requests must be appropriate for the operations
of the department or program and must be approved by the supervisor and
department head. Employees whose hours are reduced will have benefits costs
made whole through December 31, 2010. These options are also available to the
professional schools and those in grant-funded positions.
Interested staff members should submit an application and discuss their requests with their supervisor by January 15, 2010.
Benefits in the Event of Layoff
Finally, many employees have asked about the benefits that will be provided to
employees who are laid off. While I do not anticipate layoffs until after the
February Board meeting, I am providing details of what an employee would
receive. As an enhancement to the College’s standard layoff policy,
employees who are laid off will be given four weeks working notice, and they
will receive a lump sum payment at the end of their employment of two weeks’
pay for each year of service, with a minimum payout of four weeks and a maximum
payout of 52 weeks. (e.g., An employee with one year of service would work for
four weeks and be eligible for a 2 week lump sum based on the policy, but will
get a four week package based on the minimum in the enhanced policy.)
Additionally, the package will include a healthcare subsidy. This package does
not apply to grant-funded positions or employees covered by the collective
bargaining agreements. Note that for a long-term employee, the payment is
nearly equivalent to the retirement incentive. We very much want people to
make the decision that is right for them about retirement and not to be
burdened by comparing a retirement incentive and a layoff package.
Career counseling and transition support will be provided to affected
employees, with specific services for support staff, management, and leaders.
Through December 31, 2010, laid-off employees, both those affected in 2009 and
in 2010, will be considered “internal” when they apply for open positions.
Staff who accept an incentive or package in 2010 and return to Dartmouth within
one year must repay a prorated amount of the package.
Employees Represented by Unions
Please note that under federal law, we cannot make the options described above
available to qualified employees represented by the SEIU or IATSE without an
agreement from the union. The College expects to have negotiations related to
these options and the timing for them with the representatives of the unions
once we return in January.
We encourage your careful consideration of the staff options. Please do not
hesitate to contact your supervisor, or Human Resources, to ask questions about
these programs, and new restrictions on hiring for staff and temporary
positions. All of these initiatives have been generated in response to
suggestions submitted by the Dartmouth community. We encourage you to continue
to submit ideas through the budget website. We appreciate your support and
input.
Best wishes for the holidays, and thank you for your service and support.
Sincerely,
Traci K. Nordberg
Chief Human Resources Officer
http://www.dartmouth.edu/~HRS
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