Motorola and two partners ally to manage contract-labor services

Motorola Inc., H.L. Yoh Co. and TAC Worldwide Companies have formed a partnership to manage procurement and administration of contract-labor services for Motorola operations in the United States and Canada.

Motorola said the agreement, expected to encompass more than 6,000 contract positions, would create a comprehensive program designed to manage the total acquisition process for contract-labor services for Motorola businesses.

The agreement – the value of which was not disclosed – is expected to boost supply-chain efficiencies.

Among services Yoh and TAC will provide are selection of contract-labor providers, contract negotiation and handling negotiation of fees with contract-labor providers. They would also provide sourcing and engaging contract labor, invoice processing, and development and application of performance metrics, Motorola said. Human resource-related administration, including employee relations and benefits, would also be included in the agreement.

Motorola explained that use of contract-labor services has become a valuable staffing strategy. By outsourcing contract-labor management to firms such as Yoh and TAC, Motorola is positioning itself to leverage resources in the labor market and provide customers and shareholders more value.

"We are excited about this new approach to managing our contract labor needs," Glenn Gienko, Motorola executive vice president and director of human resources, said. "We feel this unique alliance with Yoh and TAC will provide us with a best-in-class, diverse contract labor supply to augment our workforce and give us the resources we need to deliver quality products to the market on time. In addition, the consolidation of our contract labor services across the corporation in the US and Canada will leverage our buying power in the marketplace and result in significant cost savings for Motorola."

Motorola, a global leader in integrated communications equipment and systems, and embedded electronic products, is a pioneer in quality-management technique and was a developer of the Six Sigma concept.

The company's 1999 sales were $33.1 billion.

Edited by Michael Lear-Olimpi, Managing Editor, Logistics Online. Reach him at mlear-olimpi@verticalnet.com.