Laboratory Director G. Peter Nanos on Tuesday announced the beginning of the Contingent Worker Project. A contingent worker is a person who works under a Laboratory subcontract and is not an employee of the University of California.
The Contingent Worker Project will determine whether work at the Laboratory should be performed by UC employees or contingent workers, and will result in reduced costs associated with contingent worker contracts.
The director established the Contingent Worker Project in December 2003 to examine whether the Laboratory's use of subcontract labor is consistent with sound business practices, and whether some assignments currently filled by contingent workers might more appropriately be designated as UC positions.
More than 3,000 contingent workers now have assignments at the Laboratory, representing about 27 percent of the work force. This figure excludes KSL Services, PTLA and Aramark Corp., whose employees are not included in the current Contingent Worker Project.
"As the Laboratory moves forward with business process improvements, it is imperative to demonstrate that this institution's operating costs and management practices are in line with sound business practices," said Nanos. "The current extensive use of contingent workers is not in keeping with sound business practices, so this institution has established the Contingent Worker Project to address the issue."
Richard Marquez, associate director for administration (ADA), appointed a Contingent Worker Project team to work with Lab management and review all assignments currently filled by contingent workers.
"Nearly a year ago, Congress, the Department of Energy and other parties asked the Laboratory to review all of its business processes," said Marquez. "A review of subcontract labor-use policies is yet another way that the Laboratory has been responsive to direction from these oversight agencies."
Contingent Worker Project team analyses indicate that the project has the potential to reduce employment costs at the Laboratory by about $20 million a year because, in many cases, it will eliminate added costs associated with contingent-worker-labor contracts, said Marquez. Consequently, the project will enable the Laboratory to fulfill its mission at better value to the taxpayer.
This month, managers will begin working with deployed Human Resources (HR) personnel to analyze contingent worker assignments within their divisions. Once the assignments are analyzed, HR personnel and organizational managers will work within an accelerated process to begin posting job advertisements for newly created UC positions, ideally in May. The newly created UC positions will be open to all external and internal applicants. The Laboratory envisions that the majority of positions will be filled by mid-summer, with the rest being filled by November 2004.
In addition to benefiting the Laboratory by putting business practices on a firmer foundation, the Contingent Worker Project will be beneficial to many contingent workers because it offers them an opportunity to become UC employees. For many contingent workers, this opportunity could alleviate long-term employment uncertainties associated with subcontractor assignments, because such assignments can be ended at will. The project also provides a mechanism to promote equity in compensation and benefits for all Laboratory employees, said Marquez. And because contingent workers will be able to compete for all newly created UC positions for which they are qualified, the project potentially can provide employment growth opportunities and upward mobility for contingent workers, he said.
"Because we have so many excellent contingent workers with valuable skills, knowledge and abilities to offer this institution, this project will be beneficial to many contingent workers," Nanos said in a all-employee memo released Tuesday. "In addition, the Laboratory will continue to utilize contingent worker assignments as appropriate, meaning that contingent workers still will have employment opportunities at the Laboratory."
The Laboratory is developing transition assistance resources to help contingent workers better understand the project and its processes and to identify opportunities and options available under the Contingent Worker Project. In the interim, contingent workers and others can consult a set of Frequently Asked Questions to better understand the project.
The Laboratory also is planning to host informational meetings in the coming weeks for contingent workers, affected vendors and other interested parties in the community. The meetings will provide the latest information about the Contingent Worker Project and will give contingent workers and others the opportunity to ask specific questions. The Daily NewsBulletin and other internal Laboratory publications will announce the times and dates of the meetings and will continue to publish updates about the Contingent Worker Project as it progresses.
"I am pleased that through the Contingent Worker Project, the Laboratory will have a chance to fulfill its mission at better value to our customers while offering an opportunity for so many to join the UC family," Nanos said. "I hope contingent workers will view the coming months with optimism and view this project in terms of the great opportunities it can provide."
--James E. Rickman