TVA plans to cut work force to stay competitive

KNOXVILLE (AP) — The Tennessee Valley Authority said it will cut its work force with a combination of layoffs and early retirements as part of an effort to compete under deregulation.

A memo from TVA chief Ike Zeringue to employees outlines steps for the planned layoffs and the organization’s effort to become a leaner operation before facing outside competition.

The Knoxville News Sentinel reported for Friday editions the memo saying TVA will finish cost-cutting reviews by Feb. 23, then begin asking employees to voluntarily resign or retire. TVA would then announce the layoffs April 22.

TVA spokesman John Moulton said he doesn’t know how many people will lose their jobs in the layoffs until cost reviews are finished and early retirees tallied.

“All employees were informed of the status of the program reviews,” Moulton said. “These program reviews will provide managers with information to determine if a program should be eliminated, outsourced or continued. We will do all these things before we determine where there might be a surplus staffing situation.”

An agreement with TVA’s Engineering Association calls for incentives for employees that volunteer to resign or retire, including severance pay, retirement benefits and some medical coverage.

Employees who are laid off will receive severance and retirement benefits, but they are not eligible for medical benefits.

Union representatives remained skeptical that TVA would handle the layoffs appropriately.

“I don’t want any of our people forced out,” said Keith Craig, international representative for the International Brotherhood of Electrical Workers. “At the same time, we understand TVA has to make some business decisions.”

Craig said the union is still seeking details on TVA’s plans.

In the memo to staffers, Zeringue said the board approved the job-reduction plan Jan. 14.

The changes are part of a focus by the TVA to become more competitive in preparation for deregulation.

“Our customers are telling us they want choice when buying electricity,” Zeringue said in the memo. “And customer choice means that TVA will not be able to count on the stable revenues we have enjoyed for so long.”

The Knoxville-based agency has 13,245 employees and supplies electricity to 158 distributors in Tennessee and parts of Alabama, Mississippi, Georgia, Kentucky, Virginia and North Carolina.
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On the Net:
Tennessee Valley Authority: http://www.tva.gov

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