Employees still worried as outsourcing deal rolls on

Some employees feel they are being steamrolled by the impending Trammell Crow outsourcing deal. As administrators continue to tweak their landmark agreement with the Trammell Crow Co. under the watchful eye of the Internal Revenue Service, some employees remain detached, disgruntled and disillusioned with the deal. Penn initially signed a non-binding 10-year agreement in October to outsource management of most buildings to the Dallas-based company. But in order to maintain the tax-exempt status of those buildings, the University is negotiating an agreement for a one-year preliminary term with a stipulation for a nine-year extension, Executive Vice President John Fry said recently. The deal has sparked heated controversy since its announcement. Many members of the University community criticized the administration for not sufficiently consulting employees, faculty members and others before the October 8 announcement. Now, administrators say they are trying to reassure employees that the transition will be smooth and to inform them of what is happening at each step of the process. Also, officials are working on enhancing employees' skills through various new initiatives. But while administrators are busy ironing out the kinks, employees are "sitting in limbo," according to A-3 Assembly Chairperson Donna Arthur. The group represents support staff across the University "This is how people make money and put food on the table and they don't know what's going to happen in a year," she said, adding that it is "completely inexcusable" for the administration to sever the lines of communication with employees. But Director of Management Development Annie McKee insisted that all relevant information has been made available to employees. McKee admitted, however, that the University's modes of communication -- voicemail, e-mail, University Council and the Faculty Senate -- are often ineffective. The "corporatization" of the Penn community has contributed to an atmosphere of employee insecurity and damaged trust, said Jim Gray, a librarian and a tri-chairperson of the African American Association of faculty and staff members. Gray, who also serves as vice president of Local 590 of the American Federation of State, County and Municipal Employees, said administrators have failed to boost employee morale during the transition period preceeding the April 1 changeover. A Physical Plant employee who requested anonymity said that "the University has given everybody a black eye." But McKee contended that administrators are actively working to create a "positive environment" for Penn employees, ensuring that they retain their benefits packages and access to University facilities. The Skills Development Center -- to be unveiled in April -- will provide a forum for University employees, local high schools and community groups to engage in "an in-depth assessment of skills and life goals" through seminars. McKee noted that the University has already made a "significant" financial contribution to the project. Even so, employees may still be required to pay a nominal fee, said Arthur, who is involved in planning for the center. Additionally, administrators hope to institute flexible work options for employees, McKee said. The University will also implement training programs aimed at encouraging job success and mobility. She added that the Trammell Crow agreement is not the only thing responsible for undermining employee morale. "It's an issue of an organization in change," she said. "We've got a different kind of institution now." Employees are concerned that administrators may invoke the word "change" to excuse a system largely based on supply and demand. "Fry has repeatedly made the statement that no one has a permanent job here," Gray said. "Employees only have a job when their services are needed." Another employee who requested anonymity stressed that his department has been torn by instability and frustration --Edespite the fact that it has not been outsourced. "It's like wartime," the employee said. "Some people aren't going to be here tomorrow. It leads us to ask, 'Why were we spared?'." McKee said the University, "like every other organization, no longer guarantees employment for life." But Arthur said employees are reeling from the impact of the surprise outsourcing decision, adding that "it still hurts." Many employees refused to speak out against the administration for fear of placing their jobs in jeopardy, she added. According to one employee, Associate Vice President for Campus Services Larry Moneta sent out a warning to employees, ordering them to keep their interactions with the press to a minimum. Moneta vehemently denied these allegations, saying such a mailing would have been "completely contradictory to my character." Although administrators have yet to sign a restructured agreement with Trammell Crow, they expect to reach a decision soon, said Lisa Prasad of the Office of the Executive Vice President.