Vitalit makes 11th-hour pitch to avoid privatization

In a last-ditch effort to protect its food and cleaning services from privatization, the Vitalit Health Network says it has achieved more savings, with fewer lost jobs, than would happen under Sodexo, the company the province wants to hire.

Through attrition, reorganization and avoiding many of Sodexo's startup costs, savings of $1.7 million could be realized over and above Sodexo's expected first-year performance, says a financial report that evaluated changes made in the past year at Vitalit.

Vitalit's CEO and president Gilles Lanteigne said that number is expected to grow to $3.4 million over 10 years.

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"And we do it without massive layoffs," he said.

Sodexo, a France-based food services giant, is on the cusp of finalizing a contract with the New Brunswick government to manage cleaning, portering and food services across the province's hospitals.

Communications officer Sarah Williams says the contract with Sodexo has been drafted and should be finalized "in three to six months."

In a New Brunswick Health Council voluntary survey last year, only 17.8 per cent of respondents rated Horizon Health Network's food services as excellent or very good, and 23 per cent said the same ofVitalit's.

Vitalit, which has actively resisted privatization, believes there is a "window of opportunity" to convince the province the network's proposal to save money is better than Sodexo's, said Lanteigne.

CBC News asked theanglophone-administered Horizon if it could provide any documents to illustrate potential savings under Sodexo or provide anyone to speak to the network's apparent decision not to pursue its own savings program.

There was no answer, and thenext day, when CBC News asked Horizon for a short telephone interview with CEO Karen McGrath, therequest was declined.

Vitalit's financial report

Vitalit's financial report said Sodexo's plan would cost $610,000 in severance packages.

The New Brunswick Council of Hospital Unions is bracing to lose 280 jobs under Sodexo, including 80 within Vitalit.

But Vitalit said it has already cut 16 full-time equivalents, or FTEs, since March 31, all by attrition and reorganization and will continue to do so, for the next three years until 52.5 FTEs are gone.

The health authority also expects to achieve further savings by avoiding Sodexo's startup costs, including a $437,000 investment in a call centre.

Vitalit says it can also avoid more than $2 million in fees for Sodexo's corporate office.

Both proposals would likely see the closure of hospital cafeterias at Sainte-Anne-de-Kent, Saint-Quentin, Grand Falls, Campbellton, Caraquet and Lamque.

Vitalit said it would continue to serve lunch at the Tracadie cafeteria, whereas Sodexo is expected to close it, altogether.

Overall, Lanteigne said the Vitalit pitch is a better solution for his organization because it will reduce workplace disruption while improving service quality.

According to the report, Sodexo is expected to monitor and be accountable for 32 performance indicators.

Vitalit says it has adopted those indicatorstoo.

Sodexo's global footprint

Sodexo is a corporate heavyweight, with operations in 80 countries and reported global revenues last year of 20 billion Euros or $30 billion Cdn.

And in recent years, controversy has ensued, including protests over food quality, food recalls and conflicts over wages, benefits and working conditions.

Sodexo's reach includes managing prisons around the world and food services at universities across North America, including the University of New Brunswick.

Sodexo's contract with UNB is expected to be reviewed this year before it's renewed for another five years.

Critics who object to outsourcing food services to multinationals, argue that profits trump nutrition.

The National Farmers Union in New Brunswick has come out against Sodexo.

"It is almost a given that large corporations like Sodexo do not deal with local farmers," said Rbeka Frazer-Chiasson, a member of the union board, in a news release.

"If Sodexo partners with the Liberal government to provide hospital food services, little New Brunswick food will find its way onto the trays of patients."