TEDA cuts 3 top jobs as first ‘12 act

In a move designed to eliminate duplication of efforts, and at a cost savings of nearly $170,000 a year, the Terrebonne Economic Development Authority has cut three fulltime staff positions and dismissed the persons holding those offices, each with severance pay through Jan. 27.

“Today was not an easy day, but it needed to be done,” TEDA CEO Steve Vassallo said after confirming the cuts last Tuesday.

Gone are marketing director Michelle Edwards Eroche, business retention and expansion director Katherine Gilbert, and researcher and grant writer Lisa Maloz.

“We have been talking about reorganization for quite some time,” Vassallo said. “We just needed to restructure because there is some emphasis there that we need and some duplication that we didn’t need.”

Eliminating three positions at TEDA was done in part because of the parish’s primary business development engine realigning itself with the South Louisiana Economic Council, which provides to its members most of the same services that were being conducted by those holding the TEDA staff positions that had contributed to more than 50 percent of the TEDA budget being dedicated to salaries and benefits. As a reestablishment of working with SLEC, TEDA paid $25,000 for the same services to be conducted through membership with that organization.

“That will offer a significant impact on our organization in a positive way,” Vassallo said. “There is no reason that SLEC ought to be duplicating the same things that we are.”

“I guess things happen with new management, new ideas and new pathways,” Eroche said. “I had an idea it was coming. I knew that when they hired Steve that restructuring was part of his contract. I just didn’t know which way it was going to go.”

Eroche had been with TEDA for a little longer than five and one half years and drew a salary of almost $65,000 annually at the completion of her time with the organization. She credited Vassallo for the manner in which he dealt with the situation and said the parting of ways was done amicably.

“I’m grateful to have worked for TEDA,” Eroche said. “I think Terrebonne Parish has a lot of assets. I learned a lot [and] I think there are a lot of opportunities for me.”

“I wouldn’t say I was surprised,” Gilbert said. “I would say I’m disappointed. I’ve been with the organization for five years. I want what is best for this community and the businesses in it. I formed a lot of business relationships and contacts over that time and worked with a lot of people. I hope to continue doing that.”

Gilbert was paid more than $56,000 per year at the time of her dismissal. “I’m going to regroup and figure out my plans,” she said.

“I knew that something was coming,” Maloz said. “It came as a bit of a shock, but nothing has surprised me over the last year.” Maloz was with TEDA for five years and earned approximately $48,000 at the time of her dismissal.

Vassallo spoke to each staff member individually at the beginning of the day with office manager Donna Washington present. Maloz said that they were each told that reorganization was taking place and those jobs were being eliminated. No TEDA board members were present during discussions with the three former employees.

With the cutting of these roles, Vassallo announced that TEDA would be adding one that had not previously existed within the organization. “What we need is a technology-driven position on our staff with a communications specialist.”

In 2009, TEDA hired a consulting firm to evaluate its needs. That firm recommended that a communications specialist be added to the organization in a full time capacity.

“When I got here in August, I started reading all these reports and evaluating what we had and what we needed,” Vassallo said. “Then I understood why they made that recommendation. It is as valid today as it was in 2009.”

The CEO said that the entire year of 2011 had been a time of entering into a restructuring mode for TEDA, which included his own hire taking place in July. It continued as a theme after he took office in August and progressed through December.

“I don’t know why it would have been a surprise to anyone,” he said.

Vassallo said in terms of TEDA performance, the organization “is not going to a miss a beat.” He said that during his career in economic development he has operated with very small staffs and found benefits in that model by assuring maximum contributions by those involved as an effort more closely aligned to a common purpose.

Vassallo credited Eroche, Gilbert and Maloz for the positive contributions they had made to TEDA.

“It was nothing personal,” Vassallo said. “It was a business decision of restructuring. It is like baseball. When you are heavy in the bullpen in spring training you don’t need another relief pitcher if in fact you need a left fielder.

“It was one of those kinds of decisions. We didn’t need more of the same. We needed some different expertise that we didn’t have. I wasn’t looking forward to today, but we will be fine.”