- The Effect of DOE Policy 350.1 on Representation and Morale on Union-Represented Contractor Personnel
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The Effect of DOE Policy 350.1 on Representation and Morale On Union-Represented Contractor Personnel
In 1998, the Procurement office of the Department of Energy (DOE) developed a “policy” regarding contractor reimbursement for employee fringe benefits.
Order 350.1, establishes a so-called “market-based” formula. The order directs that a Benefit Value Study (BenVal) must show that the per capita cost of a benefit plan is no more than five percent higher than the average value of the assessed benefits package of similar organizations in the same industry – also known as comparator organizations. It requires DOE contractors to survey the benefit packages of “comparator” companies in a region in order to establish cost parameters within which the contractor establishes the “value” of pension and health care benefits. The policy explicitly limits contractor reimbursements to 105 percent of the “value” that this survey establishes. If that cost is more than five percent of the other organization’s plan then the contractor has to submit “a corrective action plan to achieve conformance” to a DOE contracting officer.
The Union Advantage
Union members earn better wages and benefits than workers who aren’t union members. On average, union workers’ wages are 27 percent higher than their nonunion counterparts.
Unionized workers are 60 percent more likely to have employer-provided pensions.
More than 79 percent of union workers have jobs that provide health insurance benefits, but less than half of nonunion workers do. Unions help employers create a more stable, productive workforce—where workers have a say in improving their jobs.
Unions help bring workers out of poverty and into the middle class. In fact, in states where workers don’t have union rights, workers’ incomes are lower.
- Wages are 27% higher than non-union 27%
- Unionized workers are 60 percent more likely to have employer-provided pensions 60%
- More than 79 percent of union workers have jobs that provide health insurance benefits 79%