USF’s new dining and facilities partnership will impact 400 employees

The University of South Florida this week announced a 15-year partnership with Compass Group to take over management of its food and facilities services, ending a 22-year partnership with Aramark and the state’s employee status of about 400 employees changed.

The partnership is poised to save the university approximately $320 million and includes a signing bonus for USF to receive an unrestricted $47 million, plus $2.5 million in capital commitment for the new football. stadium.

A letter of intent also stated that Compass Group and affiliated groups will fund a “lifetime of contract investments” of nearly $88 million, including the signing bonus and an adjusted amount to buy out the remainder of USF’s contract with Aramark.

The agreement also includes 400 employees – largely grounds managers and other facilities and maintenance workers. positions associated with state health insurance or pension plans – currently hired by USF will no longer be state employees. It would also have consequences for the employees of Aramark, which has partnered with USF for dining services since 2002. All employees will have “the opportunity to remain in their current position with total compensation equal to or better than what they receive today,” according to a news release.

A proposal made of Compass Group and the university said they expected 355 USF employees to transfer to the company and that employees would receive an “11 percent raise to cover the rising costs of health care premiums and personal investments in their 401ks.” The company would also provide $1 million for up to two weeks of bonus pay for those who transition to a new role.

A university spokesperson said that “each USF employee’s situation will be considered during one-on-one personal sessions” so that the total compensation should be equal to or better than what they receive at USF. Compass Group has a benefits package, including a 401(k) retirement plan, available to transferring USF employees.

The partnership includes three subsidiaries. Chartwells will provide dining services from July 1. SSC Services for Education, which advertises “higher education outsourcing” for facilities and maintenance, will take over facilities including construction projects under $4 million. The transition starts on December 1.

Levy will manage the athletics facilities and concessions, including the new stadium project. Compass Group promised a $2.5 million capital investment and a $1 million signing bonus for the stadium in the proposal. The proposal presupposes they would see 330,000 visitors a year at 42 events, and said the terms would be renegotiated for reasons such as restrictions on alcohol sales, major impacts on attendance or the venue becoming unionized.

The University of South Florida union chapter of the American Federation of State, County and Municipal Employees, which would previously have represented state employees in facilities and maintenance, was decertified earlier this year after a new law was passed in 2023 that required unions to have 60% of members. pay contributions.

A 209-page proposal was sent to USF along with a letter of intent on September 30, days after Hurricane Helene tore through USF campuses, and was signed by university officials on October 2. The proposal included drafts of letters to affected employees, advertisements for town hall forums, and outlines of “opportunities for good news,” which are “best practices to create excitement” for the partnerships, as well as best practices for rolling out information to employees to “a promote a culture of care and concern.”

It also included a draft of a press release with a quote that was later slightly changed and attributed to USF President Rhea Law.

“We look forward to welcoming Compass Group to the USF community. They bring deep experience and a strong track record of quality service in higher education, campus facilities management and athletics,” the Law quote reads. “We will do our best to ensure there is minimal disruption to operations and dedicated team members are given the opportunity to remain in their roles.”