How dire?
The federal market offices with the most red ink, according to the fiscal year 2007 financial stats report, were the Bronx (-$396,000), Pittsburgh (-$313,000) Chicago (-$260,000), Dallas (-$218,000) and San Francisco (-$180,000) and Los Angeles (-$174,000).
In her April 4 memo, Skelton did not directly refer to closing offices, but did say there would be reductions in force, early retirement, reduced overtime, reduced travel and decreased refresher training and furloughs. Skelton said 78% of the FPB's operating expenses are salaries and benefits, so that's where most of the cuts are. The cuts will be both at headquarters and in the field offices, she said.
This has got to be a morale-buster at the FPB, particularly with uncertainty still out there about which offices and inspectors could be directly affected. Wasn't the USDA's Fruit and Vegetable Advisory Committee told the 15% annual fee increases for inspections were going to be the way the federal offices would stabilize their budgets and stem the flow of red ink?
Apparently, the word has come down from on high to cut and cut now. Consider that total revenue for fiscal year 2007 for the federal market program was about $15.7 million and obligations were $19.6 million. Cutting $5 million won't be easy.
Labels: FDA, Fresh and Easy, Leanne Skelton
posted by Tom Karst @ 2:05 PM
12 Comments:
The Philadelphia profit is from the tons of import from Chile and elsewhere that require as a condition of sale a USDA certificate of inspection. There are also many more actual private inspectors there doing inspections on the loads for the shippers too. Take a trip to the docks during the grape and stone fruit seasons. It's quite an experience.
My guess is the low quality of the AMS inspections. Two inspections of the same load produced wide variation in results. What customer would call for one. I don't think hiring low-payed interns and squeezing out seasoned veterans was the way to save. It's been poorly managed for years. Those who could leave, do.
Quite simply, FPB has priced themselves right out of the market with their outrageous fee increases. Skelton and Co. were forewarned that fee increases were not the way to go and instead they should cap fees and make up the difference on volume (of inspections). If cuts have to be made, cut the non-revenue producing, higher priced pork in HQ. The FPB HQ staff, which the field offices have to ultimately pay for in the way of overhead charges, has continued to increase in size and payroll. Why? (Empire building perhaps?) Fees are now so high that it is no longer cost effective to request inspections on smaller lots of less that a full truck load or rail car. (Most small markets usually handle shared loads vs full loads). Also, anyone with $100 for a digital camera and and an internet connnection can send a "digital image," which FPB charges through the nose for. So, it appears like the industry has begun to police themselves and cut the overpirced, inconsistent FPB out of the picture. (Skelton, et al was forewarned about this as well). Pretty poor vision on the part of management if you ask me. Or maybe just pure arrogance. In any case, one must ask what additional proof AMS upper management needs to make a chage at the helm of FPB. Obviously, it's being run into the ground under this short-sighted regime. (What's that old saying? A fish rots from the head down?) Case in point.
Looks like the government is facing the same reality as hundreds of others in the produce industry- times are tough and belt tightening is in order. Seems prudent but of course difficult for those directly affected. I've been involved in two downsizings over the past 10 tens- it ain't fun but it's life.
Ultimately it's Keeney's lak of talent and Lloyd Day's lack of grit to make the changes needed to work in time, Replace them all. The undersecretary is a fool.
I know some of you have strong feelings about personalities in the process; let's keep it focused on broader issues if we can. Let's respect the fact that that many in the trade value the contributions over the years of AMS staff in the context of their interaction with them.
Tom K
Tom is right, but it's hard when you are losing your job to respect those responsible. It's mainly the FPB Inspection section that upper management has been too slow and uninspired to come to grips with. Still there is no excuse the lack of foresight or the failure to take action in time with the money they make. Many feel the joke's on us.
In the wake of "Forbidden Fruit" in NY they got over $50 Million dollars to get their act together and still couldn't. A sad commentary on the so-called talent and decision makers that went through that section.
Unfortunately, the "talent" (and experience) left because their voices were never heard by the "decision makers," who sadly are still in place (and apparently unaccountable for their actions and mismanagement).
These so-called decision makers never wanted to listen to anyone but themselves. So now, they get the credit they deserve - the near insolvency and the ultimate dismantling of the Fresh Products Branch. Maybe they should have been more like "team players" and listened to some of that experience before it walked out the door.
Fortunately (for the "talent" that split), they had the good sense to get off the "FPB Titanic" before it hit the iceberg.
Sadly for FPB (and the many experiencd, dedicated, inspectors who also had no say in the decision making) as well as the produce industry...next stop....Davey Jones' Locker.....
See ya!
It sounds to me that the respondents to your blog are disgruntled employees. Restructuring is a sign of the times. If these individuals are unhappy with there jobs and the leadership then they need to LEAVE! Go somewhere else and leave YOUR position to the hard working employees who take pride and value the work they do.
Disgruntled employees? An almost laughable assumption as they had no say or control on how the millions were spent or, in this case, squandered by the current "leadership."
Those who have departed probably fall more into the fed up category as they tired of watching an inept management team lead the branch towards bankruptcy with one failed policy after another. They found greener pastures after years of attempting to reason with what has proven to be the unreasonable. To their credit, they at least had the vision to see the handwriting on the wall and got out before Skelton's "leadership" cost them their careers and livlihoods.
While I agree that restructuring certainly is a part of life and a sign of the times, this restructuring would have never been necessary had it not been for the complete failure of the regime now in charge of the program. Not exactly what I would call leadership. Of course, Custer considered himself a "leader" too.
Contrary to the previous post, I wouldn't say ANY comment above is critical of the "hard working employees" in the field, i.e., the inspectors, so this seems like a deflection from the real cause of the problem - irresponsible management that has run AMS FPB into the ground. Until such time as these "managers" are finally held accountable for their actions and subsequently removed and replaced, all the restructuring in the world won't stave off the inevitable demise of the service.
Sadly, when all is said and done, the "hard working employees" that will now lose their jobs and careers will simply be out of luck (and out of work) as will the produce industry in those markets where the cuts will be made. Meanwhile, Skelton and her management team will continue to collect their salaries in DC. Even if (and it's a big "if") they are removed from the FPB, upper managemnt will inevitably find or create some nebulous position for them to burrow into somewhere else in in AMS. A luxury not afforded the hard working employees who will soon be shown the door. Welcome to Washington.....
Anonymous said...
It sounds to me that the respondents to your blog are disgruntled employees. Restructuring is a sign of the times. If these individuals are unhappy with there jobs and the leadership then they need to LEAVE! Go somewhere else and leave YOUR position to the hard working employees who take pride and value the work they do.
HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAAH....CHOKE.......HAHAHAHAHAHAHAHAHAHA.GET ALIFE AND SOMEONE NEEDS TO TALK TO THE INSPECTORS TO FIND OUT WHATS REALLT GOING ON!!!!! OH MY GOD ITS A LAUGH RIOT!!!!!
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