WASHINGTON-Morale at the Federal Deposit Insurance Corporation has been seriously undercut by perpetual job cuts spanning the last decade. Since the resolution of the S&L crisis, the FDIC has been instituting `Reductions in Force’ with the latest round impacting up to 350 employees. Granted, the insurer will not be dumping hundreds of people out into the streets, but morale has taken a big hit. “There’s a big effect on morale here. Morale is low,” FDIC Assistant Director of Public Affairs David Barr admitted. However, the agency is offering a number of opportunities for affected employees, namely from FDIC’s Divisions of Resolutions and Receivership and Information Technology right now. The FDIC is offering buy-outs through the end of August to the entire divisions and elsewhere for six months’ pay. It will be briefing employees in mid-April on the RIFs and, at the end of June, if not enough employees have agreed to buy-outs or job changes, notices will be sent out informing employees that more needs to be done. It also offers a cross-training program for employees to switch to other positions, Barr said. A number of the employees dealing with failed banks right now have diverse backgrounds and are being offered 100 examiner positions. The FDIC also provides help with resume writing, job interview skills, and organizes job fairs for employees leaving the agency. Barr said these programs have been very successful. Last year, the agency looked to cut about 200 from its legal staff. In the end, only actually 47 left the agency and 28 of those had turned down alternate job offers within the FDIC. Barr credited banks’ great health with the reductions in the receivership office and efficiencies in technology for reducing the need for IT staff. The FDIC currently has about 5,300 employees. NCUA has been working to reduce its staffing over the last few years through attrition, precisely to avoid the morale problems experienced at the FDIC, former NCUA Chairman Dennis Dollar, who began the push, said at the time. [email protected]

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