In a changing world in which commodification is king, it is often the unskilled workers whose interests are pushed to the wayside. This is clearly the case with the Bucknell University dining services, in which many loyal, dedicated workers stand to lose their jobs and other important benefits. In this paper, we will explore how community and quality will inevitably be sacrificed in order to create a more efficiently run food service program. We have constructed our argument from data we collected through numerous interviews with dining service workers and managers from the cafeteria, the Bison and Seventh Street Café. It is very important to remember that this is opinionated data that may or may not be totally correct. However, it is factual data in regard to how the staff feels about this process. To supplement that, we interviewed the president of the Union County Industrial Corporation, Mr. Steven Hall, and a faculty member who is close to the dining service staff and is well informed about the issue at hand. We listened to the employees’ opinions on issues such as their current work environment, how their working situation could be improved and the changes that they expect. From these interviews we have discerned some of the concerns about the current dining service situation as well as possible concerns that a new contract could cause. Our goal is to give merit to the words of these workers. After all, they have the most to loose in this process. Unfortunately, as we found out quickly in the interview process, their voice is simply not being heard.
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In 1993, following the resignation of the dining services’ upper-level managers, Bucknell decided to bring in a professional food services company to handle it’s dining and catering needs. When they decided on Wood Dining Services, the dining services staff (Bucknell employees until that point) were given the option of continuing on as Bucknell employees or converting to Wood’s payrolls. Many decided to shift to the higher-paying Wood, but a good number chose to continue under Bucknell. They valued the benefits Bucknell entitled them to over the incremental wages.
One of the main benefits of remaining a Bucknell employee was basic job security. This cannot be assumed when working for a contractor, as your job depends on the maintenance of collaboration between the institution and the contractor. This causes a problem, according to one management professor, because contracted workers are often uncommitted, due to unfair work rules and lack of benefits. All contracts have an end date and rarely are contracts extended without a contest. Instead, as per general practice (and as we are witnessing presently at Bucknell), different firms get to negotiate and bid for the next term of the contract. This is the situation that Sodexho, Aramark and Parkhurst are in today. There is no guarantee that the current external provider, Sodexho, will continue in that capacity for the next contract period beginning in July. In the event that either Parkhurst or Aramark secure the next contract, they could choose to retain Sodexho’s employees or they may choose to revamp the dining services staff. There are many reasons why the latter option may prove more appealing. The most obvious being the vast reserve army in the area. This essentially means that the job loss rate is higher than the hiring rate within the region.
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THE EFFECT OF INNOVATIVE BENEFITS AND SERVICES ON EMPLOYEE RETENTION AT SAS INSTITUTE, INC. Graduate School of Webster University in partial fulfillment of the requirements Employee benefits programs are crucial to the recruitment and retention of employees in any industry. Effective programs enable employees to better cope with the demands of home and the workplace. These same policies can also ...
These unemployed individuals would gladly take on the jobs of the current dining services workers and would even accept lower wages and benefits! Sodexho’s successor may offer the current workers the option of swallowing reductions in wages and/or benefits or losing their job. This scenario has replayed itself through most of corporate America and is a very realistic concern for the current Sodexho employees. But should Bucknell be following a corporate trend? This professor doesn’t seem to think so, saying, “It is unacceptable for Bucknell University to act like a normal business, because it isn’t one. Community is far more important in the college setting, and the University should be acting accordingly.”
Prior to December, Bucknell University promised to keep all of its Dining Services employed. With the administration hoping to delegate everything related to dining services to the contracting firm, however, this is set to change. The administration hopes, amongst everything else, to transfer all the dining services staff on Bucknell’s payroll to the payroll of the contractor in an attempt – or so they claim – to end the two-tiered system prevalent amongst dining services staff. They are trying to orchestrate a situation in which all dining services employees are under one payment and benefit program. The professor we interviewed agreed with this move, saying that “It is inefficient to have workers employed by two different companies working side by side.” However, she went on to say that the best outcome would be to negotiate a fair contract with the Bucknell workers to allow them to remain here. The problem is that consolidation to one firm could be devastating for Bucknell dining services workers. They stand to lose everything. This includes everyone on the staff, even a seventeen year veteran of this University, who said “If the contract is changed, I am out of a job and would be forced to move to meet my current salary.” In response to this, the Bucknell administration claims that it is working with the competing firms to assure job-security, the prevailing wage rates, and benefit packages to all current Bucknell University dining services employees.
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What they don’t publicize is the fact that this agreement is only guaranteed for to last one year. After this year, Bucknell would relinquish any responsibilities for the individuals, giving the winning firm total power over their employment and compensation. Bucknell University’s dining services employees represent a higher cost per person than Sodexho’s employees and it is certain that a year from now, a contractor would be eager to reduce that cost. So, it became clear through our research that Bucknell employees are in a bad situation. They will certainly lose some of what they currently have, and potentially, everything. How much will be answered on May 1st, when the administration is set to announce its decision.
To make the situation for dining service’s employees even more complicated, they will be forced to reapply for their current positions, regardless of who wins the bidding war. This discounts any type of University loyalty and experience these workers may have. As one worker put it, “I could give the new contractor 3 to 4 times back what they would pay me due to my experience with the University, yet I will be forced to reapply for my job as soon as the new contract is in place.” If these employees are rehired, they will find themselves confronted with the problem of seasonal unemployment. Whereas Bucknell University assures its employees 40 hour weeks for 12 months in a year, contracting companies usually do not. They assured work during the academic year, but not over the traditional vacation periods, such as Winter break and the summer. As a result, the current Bucknell employees who are retained under the new contract will be faced with a familiar situation: three to four months a year without income or unemployment benefits. Because they are “on call” during these breaks for banquet events, they are still employed workers. This makes them ineligible for any type of unemployment benefits, even though they are without any type of income.
As far as wages go, BU workers at the Bison reported that after working with Bucknell for 4 years, they were assured a minimum wage of $9.16 per hour. While this wage seems decent, one Bucknell employed cafeteria worker said, “There is no way I could survive on my own with this job alone.” Sodexho’s wage policy is even worse. These same employees said that they could only think of one Sodexho worker at their level who received an hourly wage of $8 or higher. One can be sure that any contracting company will slash these wage rates the very first chance they get. The lower wages and benefits that they offer will generally attract less dependable and less concerned workers. Bucknell’s dining services will turn into a source of temporary jobs that people will take only until they are able to find another job. A direct consequence of this will be a drastic increase in the turnover rate. High turnover in an environment where quality is expected is nothing but trouble for dining services. Employees will rarely get adequate training, and the current sense of community between the staff and the students will fade.
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Fortunately, Rizal’s first romance, with its bitter disillusionment,did not adversely affect his studies in the University of Santo Tomas.His love for higher education proved to be greater than his love for apretty girl. After finishing the first year of the course in Philosophy andLetters (1877-780), he transferred to a medical course. During theyear of his studies in the university, which was ...
Healthcare is another benefit that Bucknell University employees stand to lose under a new contractor. According to a Bison employee, for basic health insurance and a prescription card, a Bucknell employee must only subtract $12 from every bi-weekly paycheck. It is important to remember that basic health insurance does not include dental coverage, nor does it cover high expense procedures that may arise in the life of the employee. That being said, this is still a very generous rate. According to this same employee, workers employed by Sodexho pay $89.16 for the same period and a similar plan. Obviously, Bucknell sees the merit in affordable health coverage; however, there is virtually no chance that the new contractor will continue the policy. Bucknell’s administration has said that it would try to assure the same health benefits to employees that are within 15 years of retirement, but even for them, this is still tentative. Younger employees will be dropped from this coverage completely. A consequence of this unaffordable healthcare could be felt by the campus community as a whole. As another cafeteria worker put it, “If employees cannot afford to go to the doctor, they will coming to work ill, and sanitation of food will become a huge problem.” Bucknell must have realized this when setting forth their healthcare policy, because this has not been a problem. However, it will become one if a worker cannot enjoy a right as basic as missing work for a sick day.
Bucknell University dining services employees are also eligible for various tuition benefits. The University helps the employee put his/her child through certain, specified college programs if the child is accepted to the program. An employee who has worked for with Bucknell for 3 years can study at the university at a cost of half the normal tuition. After 5 years, Bucknell will cover the entire cost of tuition. If the son or daughter of an employee who has worked with Bucknell for a minimum of 5 years applies and is accepted to the university’s academic program, Bucknell will waive it’s tuition fee. If the child of an employee who has worked with Bucknell for over 10 years is accepted to specified academic programs, Bucknell will help the family with that tuition fee. Additionally, Bucknell has agreements with other institutions which state that if a student transfers from that school to Bucknell, and the children one of Bucknell’s dining services employee has gained admission to that same university, the student will be able to attend the college in question free of charge. Finally, Bucknell University employees can take classes at Bucknell and Susquehanna and as far as costs, they are only responsible for buying their own books. The contracting firms do not offer any of these options.
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With regards to retirement benefits, Bucknell contributes a fixed amount (based on wages) towards the retirement funds of its employees irrespective of whether or not the employee puts any money aside. In contrast, from what the current Bucknell employees have come to understand, the contractors only promise to contribute a percentage of the contributions that each employee commits.
Up to now we can see that Bucknell is a very generous employer; a lot more so than any of the contracting companies. What we need to understand, however, is that the benefits are the price of getting dedicated, motivated, caring and content workers. What’s more, the results show. There are really no complaints about the service provided. Although the food might not taste like home cooking, Bucknell’s food service does all that it can to offer a wide variety of quality options, even when the creativity of the chefs is restrained by mass production. All this reflects the dedication that the employees have for their work and the pride they take in doing a good job. When you consider that a number of the employees that were interviewed have been here more than 15 years, it is hard to question their love for the University and the pride they take in being here everyday.
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An elimination or reduction in these higher paid, happier Bucknell employees will undoubtedly make for lower quality dining services staff. The fact that there is a higher turnover rate amongst Sodexho’s employees (and the employees in other contracting firms) than there is amongst Bucknell employees indicates that the contractors’ treatment of its staff leaves a lot to be desired. At present, it seems that it is the interspersion of dedicated and more satisfied Bucknell employees amongst Sodexho’s employees that has maintained the high levels of quality that we, as a university, have come to take for granted, and not the presence of an outside contractor. Can we honestly expect to maintain similarly high levels of quality when the vast majority of our employees are unhappy or even spiteful?
Aside from the more selfish review presented above, Bucknell’s current payment and benefit plan is simply more humane. Even though it is generous, it provides its workers with a wage very close to, but not quite at the Pennsylvania Self-Sufficiency Standard of employment. In fact, most of the people we interview had multiple income households and said that they needed two sources of money to get by comfortably. Given that these are Bucknell employees, imagine how hard it is for contracted workers to play their bills. Forcing a shift from Bucknell’s payrolls to those of a contractor will mean a widening gap from the Self-Sufficiency Standard that is moving in the wrong direction. With contractors’ wages, these individuals will be forced to take on a second job in a region that is already experiencing a plight in job growth.
A common theme in our discussions with the staff was confusion and the lack of communication. This held true across the board, whether it was a Bucknell or Sodexho employee. As a matter of fact, there was a question that was included in every interview which read: “What would make your working situation improve?” In almost every case, the first thing that was said was a single word. “Communication”. Two things need to be asked when there is a response this overwhelmingly similar. What makes the communication so bad and why has it not been improved if it is such a common problem? For the first question, the answers varied. Some employees cited a lack of contact with the administration. One employee said, “I have contact with a member of the administration once a year, and it is obviously no more than a song and dance routine.” It become obvious throughout the interview process that contact between University administrators and dining services is minimal at best. And when contact is made, it seems to be nothing more than a formality.
Another clear example of how poor the situation really is was provided by the fact that the managers and workers responded very differently to questions about communication. Most workers shared that communication with their direct supervisors was poor while the managers felt that current levels of communication have been adequate, if not quite good. While many of the problems with manager/employee communication seem to be reflected in the high turnover rate for lower level workers, it was obvious throughout our interviews that employees are poorly informed at best, about current issues, job expectations, and, most importantly, the future of their employment.
So, why hasn’t anything been done? While this question cannot be answered definitively through our research, it is fairly safe to say that it has something to do with the fact that managers and administrators are under the impression that they are doing enough. When both dining service managers were interviewed, they stated that they make every effort to have a personal relationship with all of their employees. They expressed a willingness to meet with them about both work and personal matters. Both claimed to have an “open door policy”, and expressed interest in having employees look at them as both authority figures and peers. So, the sides of the communication argument seem to have very conflicting responses. While it is arguable whether either or both sides are giving truthful accounts, it seems as though the management is not doing enough, regardless of intention. All of the long term workers that were interviewed cited a sense of community among the entire staff as one of the reasons why they have stayed here for so long. One factor of community is employer/employee communication. If this is poor, the whole concept will be in serious jeopardy.
A bigger problem that was continuously cited in our interviews was the inevitable damage that will be done to the sense of community between the staff and the students. Some workers in the dining service are on a first name basis with the students. They feel that the interaction with the students is one of the main benefits of their job. Some of these workers will have no choice but to leave their job and will clearly be missed by the student body. Instead, unfamiliar faces, coming and going on a regular basis, will characterize the food services of Bucknell University. This would make places such as the Bison and the Caf seem like run-of-the-mill fast food restaurants where the workers barely recognize the existence of the people they serve, and the students rarely have an opportunity to get to know those who are serving them. It will be impossible for student-staff relationships to continue as it currently is, and this is perhaps the most unfortunate side effect of the proposed contract.
An even broader sense of community is one of the university’s relationship to the local area. According to Steven Hall, the president of the Union County Industrial Corporation, a little know fact is that money made in lower skilled jobs such as the food service jobs here at Bucknell tends to turnover, or change hands roughly seven to eight times in the local community. This is a huge deal to a small economy like Lewisburg’s. When these food service employees have reduced wages, the money saved by administration will be reallocated elsewhere on campus, likely towards construction or renovations of buildings. Instead of going to the workers or even the faculty members, who are among the big spenders in this area, the money will be leaving the community, going mainly to an outside contractor that may have little to do with the Lewisburg area. Although the extent of the damage cannot be immediately determined, the reduction in money circulation in the area will really damage the small businesses such as the ones on Market Street.
Another negative effect will be the shame that many students and professors may feel towards the University. Many students and teachers are aware of the fact that the better paid workers are the happier, and the more productive they become. Students should be especially mad about this since they pay exorbitant amounts of money to attend this school. Reducing the quality of meals should not go along with an 8% tuition increase. Many students and professors may also feel disgraced that they attend a University that does not even pay a living wage, or approximately $9.00 an hour. This means that many of the workers will not even be able to sufficiently support their families. As an academic institution, it should be our duty to set an example, a moral example at that, for the rest of the corporate world. Paying below the living wage is an awful start.
Bucknell has a great reputation for food. One of the first things that is mentioned to a perspective student when they are visiting is how great the meals are here. This sales point doesn’t happen automatically. Employees have put in years of hard work and dedication to this school in order for the students to eat well and eat often during our time here. The question we need to ask ourselves when we are considering this shift to more outsourcing is whether years of work should be thrown away for the sake of efficiency. Mainstream economics and the obsession with efficiency and rationality often ignores another key concept that is taught in Intro classes nationwide: cost/benefit analysis. Is it more efficient for Bucknell to outsource dining service workers and save what one employee thought to be at least 22%? Sure. Anyone, economics major or not, can recognize that. Is it rational to save money? Sure. So why are we even wasting our time writing this paper? The cost of losing years of dedicated staff members and all of the experience, relationships, and memories that will leave with them are far higher than the benefit.
To conclude, we thought that we should include some of the “goals” of this elite institution. These are taken directly from the academic mission statement of the University. Consider what it says, and then consider what is about to happen on May 1st.
Bucknell’s Goals
6. To develop new experiences that will help students grow in moral sensitivity
and in respect for other persons.
7. To engage in institutional programs and practices that exemplify compassion,
civility, and a sense of justice.
Are we making the right decision based on our public mission statement? Or does the administration’s decision to outsource dining services blatantly contradict what the University claims to represent? Consistently and unequivocally misleading faculty, staff, and students about both the process and the ramifications of outsourcing seems to confirm the latter.