CAFETERIA
OUTSOURCING
Intro: I want to take an opportunity to
clarify information regarding cafeteria outsourcing.
These are the facts.
- Outsourcing
was discussed as early as 2009 during contract negotiations with Local 2267.
- Over the
years we have tried to balance the cafeteria budget.
- Since
2010-2011 we have reduced 12.4 staff through layoff and attrition to
reduce the deficit.
- We
have raised lunch prices to a point where we are one of the highest in
the State.
- We
continue to lose money with the cafeteria operation.
o
Year
2008-2009 ($207,183)
Year 2009-2010 ($92,121)
Year 2010-2011 ($140,487)
Year 2011-2012 ($100,000)
Year 2012-2013 ($327,000)
5 year TOTAL ($866,791)
Estimated
loss for 2013-2014 over 200K
- In January
2013, we issued a Request for Proposals (RFP).
- The
purpose of the RFP was to determine if outsourcing would provide a cost
effective alternative/cost savings and if so how much.
- In
February 2013, the Local 2267 union president was noticed of the Boards
desire to commence contract negotiations and specifically notified that the
Board was considering outsourcing the cafeteria services and was willing
to negotiate over the issue.
- In the
months that followed, two additional letters from the Board were sent
requesting to begin negotiations and discuss outsourcing. Local 2267 was not willing to begin
negotiations until May.
- The Board
shared its goals for negotiations with Local 2267, specific to cafeteria
services – cost neutral and not balancing the cafeteria loss every year on
the shoulders of the entire union membership.
- During the
time it took to get Local 2267 to the table, the Board interviewed 5
vendors and on April 18, 2013 the Board authorized the Superintendent to
negotiate and execute a tentative contract with Whitsons subject to State
review and approval.
- The
purpose of negotiating a tentative contract with Whitsons was to have a
clear understanding of everything involved along with potential savings. This was necessary information for both
parties during negotiations.
- The Whitson
proposal would eliminate the six-figure cafeteria deficit. Whitsons guarantees the Bristol Schools,
in year one, $224,500 to cover the school system’s related cost associated
with the cafeteria program. Whitsons
makes this guarantee by putting its’ management and administrative fee at
risk.
- Whitsons
will also invest $220,000 in infrastructure improvements to the school
cafeterias.
- During
negotiations it was agreed to address the issue of outsourcing outside of
the full contract. The union
requested we deal with the cafeteria workers first.
- We tried
to negotiate with Local 2267 over this issue and when both sides could not
agree we jointly asked for binding interest
arbitration and required by law.
- The
parties also agreed to engage in mediation while interest arbitration was
pending.
- Sometime later, Local 2267 changed its mind and asked the court to block arbitration. The judge responded to their arguments and rejected all their claims, including the claim that the ground rules required every member of the negotiating team to vote in favor of any agreement reached.
- During the
three day arbitration hearing, both sides had ample time to submit
evidence, call witnesses under oath, and argue their case.
- The
arbitration panel ruled that outsourcing was justified by our financial
situation, and was in the best interest of the public.
- The Board’s
Last Best Offer in arbitration included:
o
Allowing
the Board of Education to outsource when it deems it to be in the best interest
of Bristol Schools.
o
Severance
payment of $1000 to each affected bargaining unit employee who is offered a
reasonable, comparable position with the food service provider.
o
Severance
payment of $3000 to each affected bargaining unit employee who is not offered
such a position, provided he or she made a good faith effort to secure one.
- During the
course of the three day arbitration hearing the following facts were
presented through an examination of the RFP, the tentative contract with
Whitsons, sworn testimony and documentation.
- In
accordance with the Code of Federal Regulations and the Connecticut State
Department of Education, Bristol Schools must:
o
Retain
control of the quality and extent of its food service.
o
Retain
control of all the prices to be charged for meals. We determine the price of a student lunch.
o
Assure
that all State and local regulations are being met.
o
Establish
and maintain an advisory board composed of parents, teachers, and students to
assist in menu planning.
o
Retain
control and overall financial responsibility for the operation.
o
Retain
unlimited access to all areas used by the vendor for the purpose of inspection
and audits.
o
Insure
that all USDA donated foods, rebates, refunds, trade allowances and discounts
accrue only to the benefit of the District.
o
Retain
signature authority to approve reimbursement claims monthly.
- The
contract with Whitsons is for one year and subject to four additional
one-year renewals upon consent of both parties.
- Whitsons
has testified that it is to their advantage and will make every effort to
hire all current employees.
- During the
summer transition, employees will be eligible for unemployment benefits. The benefit ranges from $1000 to $2400 with
the average benefit being $1500 for
the summer months.
- Whitsons
has testified that it fully expects and is willing to work with AFSCME or
any other union the workforce chooses as their representative.
- Whitsons
is charged with following BOE policy.
It is not the policy of the BOE to have a youngster go unfed.
- Whitsons
has testified that their goal and average use of local vendors is
52%. We currently are at 25%.
- The
contract calls for Whitsons to amortize their $220,000 equipment
investment over five years. If the
BOE were to change vendors during this time the successor company would be
required to pay the unamortized portion of the investment. There would be no cost to the BOE.
- Whitsons administrative/management
fee is paid through the cost of meals.
There is no cost to the BOE.
- If the BOE
were to change vendors, all employees then working for Whitsons could be
rehired by the new vendor with the exception of management/professional
employees such as Vice President, District Manager, Food Service Director,
Supervisor, Chief, Nutritionist or Dietician.
- All breads
must be delivered fresh daily.
- Whitsons will
offer a hot breakfast program in our schools. A program we were never able to provide
our children due to labor costs.
- Whitsons
has the capacity to offer a dinner service. Something we would like to consider with
our higher poverty schools.
- With economies
of scale Whitsons provides:
o
A
purchasing team able to secure quality at the most competitive price.
o
A
team of full time dieticians.
o
A
full time food service manager and full time chef.
o
An
expansive A La Carte menu.
o
A
full time marketing team to promote student participation with programs and
presentations.
o
A
variety of selections and menu promotions.
- Whitsons
personnel policies:
o
Promote
from within.
o
Offer
staff incentive programs.
o
Provide
financial support for staff with emergency needs or education cost.
o
Offer
career development.
- Whitsons
provides $1500 yearly for student scholarships
- Whitsons
provides a custom designed webpage for the District featuring menus,
nutrition and allergen information, access to free and reduced lunch
applications and online pay options.
Closing
- Just to be
clear, Whitsons is willing to offer jobs to our cafeteria workers, and is
willing to
- recognize and bargain with the union as they have done successfully in other communities.
- Local 2267 has commenced three separate legal proceedings in its effort to block outsourcing. To date, none of them has been successful. We believe none of them has any merit, and we cannot wait indefinitely for their outcome.
- Therefore we intend to focus on the business we know best, namely education, and let the contractor focus on the business they know best, food service.
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