GSA warehouse decision cuts 300 jobs, spares 1,700

General Services Administration chief David Barram's decision to close most, but not all, Federal Supply Service warehouses will result in the loss of about 300 government jobs, officials said Thursday.

On Monday, GSA announced that two distribution centers and four forward supply points will be closed by April 2001. Two major East and West coast warehouses will remain open. The announcement culminated months of negotiations with the American Federation of Government Employees on how best to optimize FSS business operations while minimizing the impact on the agency's employees and its customers.

"It was, frankly, a compromise decision so that we could make the needed changes and work in better partnership with the union. It was a big decision-a serious compromise," Barram said.

Under Barram's original decision to close all FSS distribution centers and supply points, made last July and then reversed in October, as many as 2,000 GSA employees could have lost their jobs.

GSA officials pointed out that the number of federal jobs affected will change as the shutdown begins, but current figures show that 130 positions in Fort Worth, Texas, 125 in Palmetto, Ga., 40 in Franconia, Va., four in Chicago, Ill., five in Denver, Colo., and eight in Auburn, Wash., will be eliminated.

Affected employees will be offered early outs and buyouts, and consultants estimate that 25 percent to 30 percent will get other federal jobs, said FSS chief Frank Pugliese.

The American Federation of Government Employees, which represents many GSA warehouse employees, isn't entirely pleased with the decision, union officials acknowledge employees are better off than they were last July. "There were lots of benefits in taking a stab at the partnership, but we still don't feel that this is a supportable decision," said Mark Roth, general counsel at AFGE.

Both Barram and Pugliese said that lessons about partnership were gleaned from the eight-month warehouse drama. "I think the biggest lesson learned is that partnerships are really hard," Pugliese said. The biggest challenge is establishing common expectations for the process and getting stakeholders to agree on the best course of action, Barram said. "In this case, we really weren't quite there, but we came a long way."

There's still a long way to go, with bargaining over the implementation of the shutdown yet to come, a step Roth described as "starting over at square one."

AFGE officials say downsizing at the warehouses should begin with contractor employees. It doesn't cost anything to eliminate contract positions, while government employees are typically offered costly buyouts, Roth said.

The union also still thinks GSA needs to fix the supply system rather than close warehouses. "This is a $750 million program that still only lost $1 million last year, despite all the fat and waste that exists. And [Barram] wants to give it away," Roth said.

AFGE is coming up with its own proposal for the future of GSA's distribution system that includes cutting 400 contractors and closing four forward supply centers immediately.

Meanwhile, Pugliese is optimistic that the bargaining process will go smoothly. "Hopefully we'll be able to accommodate most of [the union's] wants, needs and desires. I'm hoping there won't be a lot of bumps in the road," he said.

While Barram thinks the lessons and advantages of the warehouse shutdown will continue to unfold, AFGE is less optimistic about the future.

If Barram leaves the government at the end of the Clinton administration, his replacement will be faced with a "demoralized workforce and cynical management," Roth said.