SAIT food services privatization will not produce promised benefits: AUPE
CALGARY – Privatization of food services at the Southern Alberta Institute of Technology will prove to be a financial disappointment for the institution, the president of the Alberta Union of Provincial Employees predicted today.
SAIT informed AUPE last week of its decision to contract out food services to a private-sector company.
“Naturally, members of the SAIT community are very disappointed by this short-sighted decision, which is not only unfair to employees but is not good business,” said AUPE President Dan MacLennan.
MacLennan predicted that the savings SAIT claims it will realize over five years by contracting out the work of 85 full-time, part-time and casual employees will turn out to be a disappointment — especially when the time comes for the private-sector contractor to renegotiate its contract.
But MacLennan also said that by moving to contract out food services, SAIT is denying itself the potential for profit that could be generated for the institution by a well-managed department, as is the case at the Northern Alberta Institute of Technology in Edmonton.
NAIT, which remains committed to operating its own food services department staffed by NAIT employees, generated an eight-per-cent contribution margin on sales of $4.3 million in the 2004-2005 fiscal year, according to NAIT’s annual report.
NAIT food service employees, who are also members of AUPE, are equally committed to running an efficient and profitable department for their employer, MacLennan said.
“It’s a shame that SAIT was not prepared to stick with the model in use elsewhere, which over the long term promises greater benefits both to the institution and its employees,” MacLennan said.
“In addition, time and again, contracting out fails to deliver the savings promised,” he said. “There is no reason to believe this example will be any different.”
SAIT informed AUPE of the plan Wednesday after the SAIT Board met Tuesday night. AUPE was told SAIT expects to hand over food services operations to the private company next month or in June.
AUPE will enforce its contract with SAIT to ensure that all eligible food services employees receive the severance payments to which they are entitled, said AUPE Union Representative Brenda Williams.
AUPE Local 039 represents more than 600 SAIT employees.
For more information, contact:
Dan MacLennan, President, AUPE, 780-930-3301 or 780-232-8392 (cellular phone)
Brenda Williams, Union Representative, AUPE (Calgary Regional Office), 403-531-8605 or 403-620-7842 (cellular phone)
David Climenhaga, Communications Director, AUPE, 780-930-3311 or 780-717-2943 (cellular phone)