HUD AND NFFE LOCAL UNIONS FINALIZE AGREEMENT TO IMPLEMENT MANAGEMENT REFORMS

"From the very beginning, this plan has been about one thing -- partnership," said Cuomo. "While we need to create a new HUD, we said from day one that we don't want to do it at the expense of HUD employees. This is one more stamp of approval from the people affected most directly by the HUD 2020 Management Reform Plan that not only did the process work -- but the plan works for both the Department and its employees."

In a statement on today's announcement, NFFE's national office said: "NFFE supports both the process and product of the Management 2020 plan . . . We recognize that changes are needed for HUD to survive as a Department. The changes proposed in Management 2020 are realistic and in the best interest of both the public and HUD employees."

"We appreciate the Secretary's efforts to work with HUD's union representatives to reach consensus," the NFFE statement said. "The plan incorporates thoughts from all levels of the workforce. The Secretary's approach to partnership is unique in our experience. We look forward to building on this spirit of partnership."

Today's announcement reconfirms an earlier commitment made by the Department: that HUD will gradually reduce its staff size to 7,500 by the year 2002, but will do so in a way that safeguards HUD employees -- without layoffs or forced relocations. To further minimize dislocations, today's announcement grants even more flexibility to HUD employees within local commuting areas nationwide.

"While no one likes to see jobs lost, in the context of budget constraints, HUD's 2020 reform plan represents a humane and pro-active approach to meeting the needs and concerns of the workers affected," said NFFE.

The management reform plan was developed at Cuomo's direction by HUD staff with the help of HUD employees, union representatives, Vice President Al Gore's staff, the Office of Management and Budget, the HUD Inspector General's office, and outside experts including Ernst & Young as well as reinvention gurus David Osborne and James Champy. HUD has been criticized by Congress and its Inspector General since 1980 for failing to modernize operations and fight waste, fraud, and abuse. The General Accounting Office designates HUD as the only "high risk" agency in the federal government.

"Management 2020 correctly emphasizes the creation of a real estate management system to assess the condition of the current portfolio and manage the risk accordingly," said the NFFE statement. "The creation of Community Builders as customer-friendly representatives, focusing on "front-office" rather than "back-office" functions, will help establish better client relations. And, the FBI and Department of Justice cooperation and partnership with HUD will finally bring HUD the resources and skills to eliminate waste, fraud, and abuse. Intelligent changes such as these will allow HUD not only to survive, but to thrive well into the next century."