The following information regarding UC Davis dining services and the campus partnership with Sodexho was shared with Dateline by both UC Davis Student Affairs and the Office of Administration:
What is the nature of the UC Davis partnership with Sodexho to provide food service to the campus, and why are we hearing so much about this now?
Sodexho, a food service contractor located at more than 750 colleges and universities nationwide, has been a campus partner since 1971. Sodexho provides dining services in the campus residence halls, and manages the retail food services at the Silo, the Pub, in the Health Sciences district, the Biological Sciences lab, and at the Activity and Recreation Center. It also provides catering services for official campus events and for external customers who rent campus facilities. It also runs concessions at the Pavilion, the Mondavi Center, the multi-use stadium and campus vending operations.
Slightly more than $20 million in food service business was conducted at UC Davis through Sodexho in 2005-06, and Sodexho reports a profit margin in recent years of between 0 and 2 percent. The current Sodexho contract began in 1998 and expires June 30, 2010.
In recent weeks, some employees of Sodexho have been organizing an effort to draw attention to their desire to become employees of the University of California and UC Davis. The campus recognizes the employees' right to share their concerns. The campus also intends to maintain its relationship with Sodexho and to honor its current contract.
Why does UC Davis want to maintain its contract with Sodexho?
The campus wants to keep food service costs low for all customers, and to keep total room and board costs at UC Davis residence halls competitive. The campus estimates that if Sodexho career employees were to become employees of the campus, there would be at least $3.2 million a year in additional costs. These costs would be divided among both students and campus food service customers. Residence hall students would pay about $600 more per year — a cost increase that could move UC Davis from one of the least expensive to one of the most expensive UC campuses in total room and board. The costs would also result in higher retail costs at campus food outlets and concessions, additional rental costs for meeting rooms in student union facilities, and significant changes in the campus catering program.
In addition, Sodexho has invested in the construction of campus facilities, such as the Tercero Dining Commons, and supports a wide range of student and staff programs. Commissions from Sodexho food vending services also help support the Memorial Union's Auxiliary Services with over $600,000 in revenue each year.
What do meals cost at UC Davis dining facilities and how do they compare with other campuses?
UC Davis currently ranks 6th among the UC campuses in the total cost of room and board, at $10,215 per year. The estimated annual cost of the average student meal plan at UC Davis — $2,860 — is competitive with other UC campuses, but hard to compare directly because all of the campuses offer so many different meal plan options.
Who works for Sodexho at UC Davis?
There are 279 full-time Sodexho career employees here, and an additional 442 UC Davis students. More than 35 percent of Sodexho's non-student career employees have worked for five or more years on the UC Davis campus, and 5.5 percent have served more than 20 years.
What pay and benefits do Sodexho employees have?
As of November 2003, all Sodexho career employee compensation has met the requirements of the Sacramento Living Wage ordinance. Employees have received pay increases every January since 2004. Merit pay increases have averaged 3.5 percent for the past two years. And Sodexho will join the University of California in providing wage adjustments for lower paid career employees, as was recently announced by UC. Employees who work more than 30 hours per week receive full-time benefits, including medical, dental, vacation and sick leave and an optional 401K plan. Entry-level wages for student employees range from $7.50 to $8 an hour.
What is the campus doing to make sure that Sodexho treats employees fairly?
Sodexho is committed to the fair treatment of all employees, and at the request of the campus will incorporate the essential elements of the UC Davis Principles of Community into its policies. Sodexho plans to meet with all current employees to insure a thorough understanding of these principles. Sodexho also has a formalized process for handling employee issues or complaints, and the company observes a Promise of Respect and Fair Treatment, which states every employee has the right to voice a complaint or concern without fear of retaliation.
What labor options area available to employees of Sodexho?
Both UC Davis and Sodexho recognize the right of dining service employees to unionize or refrain from unionizing as they so choose. As stated in the Sodexho employee handbook, "The company will fully comply with all legal obligations surrounding that right, including the obligation to bargain in good faith with an elected collective bargaining representative. The company will not discriminate against any employee because he or she engages in union organizing activities, or otherwise supports a union."
Who determines what food services the campus needs, and who oversees the Sodexho partnership and contract?
All services provided are outlined in the Sodexho contract agreement. The campus manages the contract through the Student Housing office and Memorial Union Auxiliary Services. Sodexho and the university work together in assessing food service needs, through surveys, the Residence Hall Advisory Board, focus groups and feedback from other food service customers. Services are regularly modified according to campus needs.
Media Resources
Clifton B. Parker, Dateline, (530) 752-1932, cparker@ucdavis.edu