ANNISTON ARMY DEPOT, Ala. -- Times are changing and so are some of the luxuries we once had. As your commander, it is my desire to keep you informed utilizing the many resources we have available.
As I shared earlier this month during the Morning Show broadcast, we must posture ourselves with hopes of a soft landing. While I am an optimist and like to see the good in people and situations, the economic downturn is spreading and is affecting us all. I am confident we'll get through this, but the depot is going to be affected.
Conditions have a tendency to change fast. And our daily operations and projections are contingent on our workload. Fiscal year 12's workload has potential; it is still too soon to determine if it will carry us through the entire year. I am hopeful that no one " temporary or term employees " will be released before January 2012, but we'll have to wait to see how it unfolds. As conditions change, I will keep you informed.
Right now, we're taking a more proactive approach to rightsizing while matching employee numbers with workload numbers, in hopes of restructuring the workforce without a loss of employees. At the same time, we are working to mitigate such losses by a number of means. In June, we were able to offer VERA (Voluntary Early Retirement Authority) and VSIP (Voluntary Separation Incentive Pay) with 175 packages being approved. We are waiting for approval on a few others.
Some of our teammates have accepted positions at Ft. Benning, Ga., and at the Defense Generator Rail Center in Utah. We are also expecting another round of VERA/VSIP later this year. Again, this is all contingent on our workload.
I am often asked about the status of the group award payout. We've been very fortunate over the years. While reducing overhead costs, meeting and often exceeding performance, producing quality products on time and within cost and conserving our leave usage, you were the recipients of significant payouts. With our actual direct labor hours resulting in less than we planned, the criteria for payout will not be met this year. Instead of that being our focal point, let us be thankful for the jobs we do have and focus on the future.
We must continue striving to keep our rates competitive for future workload.
As you know, management is actively pursuing additional work. We are working with our customers to bring some things to fruition.
While we take steps to improve our survivability, we must also prepare for the worst-case scenario.
In closing, I want to remind you that Anniston Army Depot is doing all it can to help the situation, but you, too, must do your share… update your resume, don't put all of your eggs in one career basket, continue to seek opportunities, posture yourself for the future and work diligently to support the warfighter. We will get through this.
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