May 7, 2007
Members: Richard Greenwald (Chair), Sharon Sundue, Arthur Pressley, Jonathan Reader, and Gabriel Auteri
1. Charge to The Committee
Dear Professor Greenwald,
I want to thank you and the other members of the Ad Hoc Committee on Food Services for undertaking this short-term, intensive task at such a busy time in the semester. In this brief note, I want to outline a charge that will define the committee’s task clearly. I hope to hear back from you by or before Monday, May 7.
The Dining Committee has already determined that they wish to award a food contract to Sodexho on the basis of quality of food, nutrition values, and cost. That committee has worked well, the process has been open and complete, and I don’t in any way wish to second-guess the committee’s decision.
Instead, the Ad Hoc Committee should look into any issues it considers germane to the business practices of Sodexho. It should hear from any interested individuals or groups on campus and beyond, from the corporation itself if it wishes, and from the Dining Committee members to the extent that they engaged any of these issues. Harry Scarpa, who has been negotiating the contract, will be particularly valuable in this.
The committee also should avail itself of any faculty expertise beyond the committee members and should feel free to consult experts at other institutions.
I would ask the Ad Hoc Committee first to define what issues are relevant and then to address each of those. (Issues that have been raised include labor relations, equal opportunity in hiring and promotion, treatment of workers with a special eye to existing workers on the Drew campus, and the implications of groups that Sodexho serves including prison, corporate, and military services—but I do not intend this list to be comprehensive.)
The Ad Hoc Committee should come to conclusions regarding the business practices of Sodexho. In the spectrum of businesses generally and food services in particular, do you see Sodexho business practices as ethical overall? Would you recommend that Drew University continue negotiations with Sodexho? If the answer is in the affirmative, are there areas of concern in regard to which Drew should seek guarantees? If not, how might Drew proceed to evaluate other suppliers?
This need not be an elaborate report. It should be brief and direct, but with ample documentation. We are striving here not only for a good decision but to exemplify how an academic community seeks accurate information and turns that into knowledge and judgment.
I cannot emphasize too much my gratitude to each of the committee members for undertaking this task for all of us.
Bob Weisbuch
2. Committee's Process
As charged by President Robert Weisbuch, the Ad Hoc Committee conducted an independent investigation into the business practices of Sodexho. We met as a full committee twice and corresponded via email in producing this report. We met twice with concerned students, spoke to a number of faculty, met with representatives of Sodexho and the chair of the Dining Services Committee, and spoke to the lead labor organizers in both SEIU and UNITE-HERE about the firm’s labor practices. Research revealed several important issues of concern for the Drew community. We researched the practices of Sodexho as well as other companies in the food service industry.
3. Sodexho Corporate Record
Sodexho Campus Services (the firm chosen by the Dining Services Committee) is part of Sodexho USA, which in turn is part of Sodexho Alliance, an international company doing business in 72 countries. Sodexho Campus Services was formed after the parent company purchased a subsidiary of Marriott in North America, giving the new firm a footing in the US. Many of the issues with the firm appear to have been inherited from Marriott. Sodexho appears now to have fully transitioned past Marriott’s practices. In 2005, Sodexho settled a 1999 class action lawsuit for discrimination, which it inherited from Marriott. Before that settlement, Sodexho/Marriott was a firm with a record of discrimination, unfair labor practices and a small-stake ownership in a private, for-profit prison company. The 2005 settlement came on the heels of an aggressive effort from unions and campus groups to end years of unfair and exploitive labor practices. In 2001, the company sold off its ownership stake in the for-profit prison company at a loss of $72 million. The suit and public pressure appear to have caused the company to reverse its policies on a number of key issues: diversity, labor, sustainability and prison ownership. The post-2005 company now argues that it is a leader in the food services industry promoting good corporate citizenship and social responsibility. In addition, it is making a great effort to support sustainability. Research reveals that now, Sodexho Campus Services appears to be a leader in the industry.
4. Specific Issues Raised
Labor Practices: The food service industry has a reputation of being antiunion, unfair and exploitive in its labor practices. Recently, however Sodexho Campus Services has signed a neutrality agreement with the two major unions in the industry: UNITE-HERE and SEIU. The committee chair spoke with the lead organizers and several researchers at both unions that deal with food services and has been assured that as one organizer stated, “there are no hot issues between the unions and the company.” In fact, the company has 300 worksites that are currently unionized. In a meeting on May 3 with Sodexho representatives and this committee’s chair, Timothy L. Smith, a senior vice president for the company, reinforced the company’s policies and spoke of a new positive relationship the company has with unions. The company’s “union neutrality,” however, is in fact simply the legal requirement under the National Labor Relations Act as amended. However, in this day and age of anti-unionism, officially declaring neutrality is an important step. In addition, the company has signed on the Global Sullivan Principles for Social Responsibility. The GSP are forward looking principles of social responsibility and good corporate citizenship. As a signatory to the GSP, Sodexho Alliance and all its companies promised that:
“As a company which endorses the Global Sullivan Principles we will respect the law, and as a responsible member of society we will apply these Principles with integrity consistent with the legitimate role of business. We will develop and implement company policies, procedures, training and internal reporting structures to ensure commitment to these Principles throughout our organization. We believe the application of these Principles will achieve greater tolerance and better understanding among peoples, and advance the culture of peace.
Accordingly, we will:
- Express our support for universal human rights and, particularly, those of our employees, the communities within which we operate, and parties with whom we do business.
- Promote equal opportunity for our employees at all levels of the company with respect to issues such as color, race, gender, age, ethnicity or religious beliefs, and operate without unacceptable worker treatment such as the exploitation of children, physical punishment, female abuse, involuntary servitude, or other forms of abuse.
- Respect our employees’ voluntary freedom of association.
- Compensate our employees to enable them to meet at least their basic needs and provide the opportunity to improve their skill and capability in order to raise their social and economic opportunities.
- Provide a safe and healthy workplace; protect human health and the environment; and promote sustainable development.
- Promote fair competition including respect for intellectual and other property rights, and not offer, pay or accept bribes.
- Work with governments and communities in which we do business to improve the quality of life in those communities—their educational, cultural, economic and social well being—and seek to provide training and opportunities for workers from disadvantaged backgrounds.
- Promote the application of these Principles by those with whom we do business.”[1]
As a Charter Signatory to the GSP, we expect Sodexho to continue to uphold these principles in its operations on our campus.
Concern for current Aramark employees: Some current Aramark workers have been working on the Drew University campus for many years. Many in the community are worried that with a new contractor many of these workers would be without a job or somehow diminished in the transition. In the committee chair’s meeting with Sodexho executives, they assured the committee that all current Aramark employees would retain their jobs with current seniority, level of benefits and pay. In addition, two managers (snack bar and Commons) would also be granted interviews.
Sustainability: A major concern for any university is the issue of sustainability. Sodexho has listed sustainability as one of its four “Priorities for Dining” at Drew. The company has committed itself to this issue through its programs “New Jersey Fresh” and “Madison 35,” in which the firm pledges to purchase produce from local farmers. Sodexho also pledges to provide the university with funding to support the university’s outreach efforts and to work with campus groups such as Habitat for Humanity and American’s Second Harvest to support community efforts.In addition, the company pledges to implement “fair-trade, shade grown and organic brands.” [2]
Prison Ownership: Sodexho Alliance, the international parent company, operates the non-security aspects of prisons in Europe and elsewhere. It had also owned an eight percent stake in a for-profit private prison in the United States. Because of pressure from concerned citizens (the Prison Moratorium Project, for instance) and the impact of this arrangement on Sodexho Campus Services, Sodexho Alliance sold off its interest and currently does not operate, serve or do business with any prisons in the US. The parent company continues to operate prisons around the world. The committee discussed this and, while not happy about the situation, believes that that Sodexho Campus Services is, as an independent entity, better than most other firms in this business. We were pleased to learn from Timothy Smith, a senior VP, that it was his company that lobbied the parent company to divest from prisons and not do business with prisons in this country.
Vegan/VegetarianConcerns: Vegan/Vegetarian community members expressed concerns that their voices and concerns would not be heard or taken into consideration when planning menus. The committee addresses this in our recommendations, below.
Ethical opt-out: Several student expressed concern that there was no mechanism to “Opting Out” of the meal plan for moral reasons. This is also addressed, below.
5. Recommendations
It is the recommendation of the Ad Hoc Committee that the university accept the recommendation of the Dining Services Committee and sign the contract with Sodexho, with the following recommendations to allow Drew to work together with Sodexho to ensure that the company meets its goals as a good citizen on our campus:
- The university should promptly inform current Aramark employees of Sodexho’s pledge to retain current workers so as to allay any fears.
- Sodexho should not fire, discipline or transfer employees during the duration of the contract without first notifying the Dining Services Committee chair. We recognize that as an independent contractor, Sodexho has the right to manage their workforce as it sees fit. Nevertheless, because of the interaction of these workers with our community and the concerns we have about the industry’s treatment of workers, we expect consultation before such actions are taken. (In the committee chair’s meeting with Sodexho executives, the university was told this would happen.)
- Sodexho should supply yearly personnel statistics to the Dining Services Committee so it can verify the company’s employment policies. (Sodexho has agreed to supply quarterly reports to the Dining Services Committee chair.)
- Many in the campus community expressed deep concern about the current wages paid to workers under contract with our service providers. The university should develop a complete set of policies with respect to all university employees, (contract or regular) as well as a set of employment standards for our subcontractors. These standards should be made accessible to the campus community on the Drew University intranet. As an institution of higher learning that is devoted to promoting responsible citizenship, it is important that Drew be a community leader in this regard and ensure that our subcontractors do the same.
- As a corollary, Drew is strongly encouraged to explore moving towards a living wage policy for the campus. We realize that this is an issue which will have implications across the campus, beyond this contract and that it needs to be seriously studied in all its complexity. But, as an institution of higher learning concerned with social urgencies, we believe that the university should take the lead amongst public institutions in the region and proactively engage in this important discussion. Therefore, a university-wide living wage committee should be created to examine this issue and make recommendations to the administration and University Senate.
- Sustainability: Sodexho should work with the Drew community to prioritize its community partnerships. A committee of concerned faculty and students should be formed to work in partnership with Sodexho on issues of sustainability. Sodexho would report its sustainability efforts on a yearly basis to the university and this committee would comment on its efforts. More importantly, this committee could help identify for the firm worthy partnerships it could support. (Sodexho representatives agreed to this. They pledged that as Drew’s sustainability efforts grew, so too would their partnership. They agreed to provide regular information—email blasts or on a webpage—which reported the company’s sustainability efforts. They agreed that fair-trade and organic coffees would be available every day and fair-trade and organic, as well as locally grown foods, would be a very high priority.)
- Vegan/Vegetarian students: While the proposed Sodexho plan as presented seems reasonable, no one of the committee is a vegan or vegetarian. In the future, the food services committee should include at least one vegan/vegetarian student representative whenever possible. Such a representative could be drawn from Earth House. The Dining Services Committee should also survey students to evaluate the exact percentage who have special dietary needs (including vegan/vegetarian, kosher, halal) and that these communities be considered strongly in the monthly meetings the committee has with Sodexho. Such statistics should be shared with Sodexho to help them in the planning and implementation of their menus. (Sodexho agreed to this recommendation.)
- The issue of an ethical opt out of the meal plan was raised by a small number of students. We assume that this is something that cannot be considered during the current contract, but it is our hope that this issue can be addressed during the next selection process.
- The committee recognizes the importance of communication in dealing with these important and sensitive matters. Therefore, Sodexho should keep the Dining Services website active, provide a means to receive feedback on line and respond accordingly and without delay. As part of effective communications, Sodexho quarterly reports (on its employment statistics, sustainability and other matters the Dining Committee deems important) should also be made available on the Dining Services website for the community’s viewing. Lastly, we would appreciate if Sodexho would place a link of this page to the company’s employment and personnel policies.
Respectfully submitted on behalf of the committee,
Richard A. Greenwald, Chair
6. Addendum
COMMUNICATION WITH SODEXHO REPRESENTIVE:
The following is from an email the Committee Chair received from the Account Executive from Sodexho May 4, 2007.
Richard--
Thank you for taking the time to meet with Tim, Heather, and me yesterday. Below I have included some key points from Sodexho’s Dining Services proposal that I believe will assist you in communicating Sodexho’s commitment to Drew’s hourly employees:
Employment
Sodexho is pleased to offer employment to all existing food service hourly staff at a rate of pay you shared with us. We recognize the contributions that the staff has made over the years as employees of your current contractor, and as members of the Drew University community. We look forward to working with them to continue to develop their skills and to lead them in creating new levels and styles of service for the campus community. In addition to offering employment to all existing food service hourly staff, Sodexho is committed to interviewing several members of the existing management team, including Arturo and Carlos, as discussed during our meeting yesterday.
Benefits
The hourly employees will enjoy Sodexho benefits including vacation, sick, holiday and medical benefits. There is an extensive overview of the hourly employee benefits package in the proposal.
Employee Handbook
Included in the proposal is an electronic copy of Sodexho’s hourly employee handbook. This will be distributed to all employees. Please feel free to share this with members of the Drew community.
Training
The success of the dining program depends on the hourly employees and their understanding of your mission and vision and the role they play in executing on that promise. We are committed to providing each member of the Drew Dining team with a detailed training and development plan that will them reach their full potential.
Transition
We will develop a customized transition plan for Drew’s hourly employees. This plan is not only aimed at retaining the hourly employees but also gives them the opportunity to understand that Sodexho is committed to providing them with the tools needed to be successful. To ease concerns regarding the transition, Heather along with Sodexho’s Human Resources team will:
- Meet with each employee individually to help them fill out applications and to address their questions about benefits, salary, career goals, etc
- Host an all employee meeting to introduce the new programs, management team and what the future holds
- Invite employees to attend an all employee luncheon to welcome them to the Sodexho family
- Introduce them to ongoing training opportunities
Communication
Any successful transition process must involve the entire Drew community. We will enlist the participation of Drew’s administrators, representatives of the College of Liberal Arts, Caspersen School of Graduate Studies and Theological School, staff and students in the development of our transition plan and at key intervals throughout the transition process and year. We will use the Dining Services web site as a portal to share ongoing information with the entire Drew community.
If you need additional information or clarification, please feel free to email me. Have a wonderful weekend. --Melanie
Melanie Sweeney
Account Executive
Sodexho Campus Dining Services
