New USF dining and facilities partnership will affect 400 employees

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

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

A letter of intent also said Compass Group and affiliated groups will fund a “contract duration investment” of nearly $88 million, including the signing bonus and an amount drafted to purchase the remainder of USF’s contract with Aramark.

The deal also means 400 employees, mostly groundskeepers and other facilities and maintenance employees. Positions that come with state health insurance or pension plans, currently hired by USF, will no longer be state employees. It would also affect 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 roles with total compensation equal to or better than what they receive today,” according to a news release.

TO elaborate proposal by Compass Group and the university said they anticipated that 355 USF employees would transition to the company and that employees would receive an “11 percent salary increase to cover the incremental costs of health care premiums and personal investment in their 401k.” The company would also provide $1 million for up to two weeks of bonus pay for those transitioning to a new role.

A university spokesperson said “each USF employee’s situation will be taken into account during one-on-one sessions” so 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 transitioning USF employees.

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

Levy will manage sports 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 supposes would see annual attendance of 330,000 at 42 events, and said terms were subject to renegotiation for reasons including restrictions on alcohol sales, major impacts on attendance or the venue unionizing.

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

A 209-page proposal with a letter of intent was submitted to USF on Sept. 30, days after Hurricane Helene devastated USF campuses, and was signed on Oct. 2 by university officials. The proposal included draft letters to affected employees, publicity for community forums, and descriptions of “good news opportunities,” which are “best practices for creating buzz” for associations, as well as best practices for disseminating information to employees to “ Promote a culture of care and concern.”

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

“We look forward to welcoming Compass Group to the USF community. “They bring extensive experience and a strong track record of quality service in higher education, campus facilities management and athletics,” Law’s citation read. “We will work to ensure minimal disruption to operations and dedicated team members who will be offered opportunities to remain in their roles.”