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Light at end of tunnel for former ARCO Alaska employees Uncertainty does continue for 800 of Phillips Alaska’s 1,500 employees who are impacted by change to single operator at Prudhoe Bay Kristen Nelson PNA News Editor
Kevin Meyers, newly named president and chief executive officer of Phillips Alaska Inc., said April 26 that employees at the former ARCO Alaska Inc. have been on a 13-month roller coaster ride.
“I think the good news here is we’re finally beginning to see the light at the end of the tunnel. We know what our future’s going to be. We still have this question of how the single operatorship resolves itself in terms of impact on the work force.”
As for ARCO Alaska, he said, “it’s a proud heritage — something I take great pride in. But it’s time to put that behind us and look to the future.
“And the future,” Meyers said, “is Phillips Alaska.”
Single operator impact “We know that approximately 800 employees will be impacted” by the change to a single operator at Prudhoe Bay, said Jim Mulva, chairman and chief executive officer of Phillips Petroleum Co.
“Which means that they may certainly have a position either with Phillips Alaska or BP Amoco or some other opportunity,” Mulva said. “We know that 800 employees will be impacted one way or another.” Lost positions “will be dramatically less than that (the 800 employees impacted by the change), but it’s not yet determined.” Business needs will dictate how it’s accomplished, Mulva said, but added that the company “will be trying to solicit and work with the desires of the individual employees…”
The company has approximately 1,500 employees in Alaska, said spokeswoman Dawn Patience, approximately the same number as last year.
“Best players play” “I can’t really speak for BP,” Meyers said, “but I know the companies have agreed that within the bounds of business constraints, that indeed it’s going to be best players play, without respect for bias towards company affiliation. We have made that agreement.”
“In staffing the consolidated Prudhoe Bay organization, it’s our intent to put the best qualified individuals into the positions for which they are best suited. We will make those decisions without bias to prior company affiliation and we will take into account the personal preferences of the individuals involved,” BP Exploration (Alaska) spokesman Ronnie Chappell told PNA April 27.
“We will do this,” Chappell said, “without involuntary layoffs of existing BP Exploration staff. We will handle any impacts associated with the consolidation at Prudhoe Bay through the transfer or redeployment of BP employees within the company.”
“We’re going to endeavor to the fullest extent possible to try to ensure there’s no involuntary severances,” said Meyers, although he noted that Phillips Alaska couldn’t guarantee that. “It’s not a voluntary program,” he said, “but we’re hoping that through people’s desires that whatever job reductions have to occur that the vast majority of those are voluntary in nature…”
“We are working hard to determine the size and shape of the new organization and we expect to know what the new organization is going to look like by mid-May,” Chappell said.
Mulva estimated that it would take several weeks or a month to determine the impact on employees. To this point, he said, focus has been on closing the acquisition.
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