AT&T Outsources Work To Aon Unit

By Mark E. Ruquet

NU Online News Service, May 30, 4:13 p.m.EST?Aon Corp's subsidiary, Aon Consulting, will take overadministrative functions of AT&T's human resources departmenton Saturday, it was announced.

The seven-year agreement calls on Aon Human Capital Services, asubsidiary of the Chicago-based firm, to take over human resourcesadministration, transaction and payroll services, including theoversight of existing benefit plan service providers, the twocompanies said in a joint statement.

No financial terms of the agreement were released.

The companies said nearly 400 of the New York City basedtelecommunication company's management and non-union employeeswould receive job offers from AHCS.

The 184 AT&T employees represented by the CommunicationsWorkers of America, and their 14 management supervisors will remainas employees of AT&T and support the work of AHCS.

In August 2000, Aon Consulting purchased Actuarial SciencesAssociates, Inc., based in Somerset, N.J. The human resourcesconsulting company was established by AT&T in 1985 and laterspun off into a private company in 1998.