Campaign for Quality Services

Sodexo's "Sweetheart Deals"?

2010-07-27T20:25:03Z

On Wednesday, New York Attorney General Andrew Cuomo announced a $20 million settlement with Sodexo for overcharging 21 New York school districts, the State University of New York (SUNY) system, and state facilities that include a center that provides services to abused, neglected and abandoned children.

"This company cut sweetheart deals with suppliers and then denied taxpayer-supported schools the benefits," said Cuomo.

The $20 million is the largest-ever monetary settlement under the New York False Claims Act that does not involve Medicaid funds.

Watch the video below to see the coverage of this settlement:

Sodexo To Pay $20 Million For Illegally Overcharging NY Schools

2010-07-27T18:47:40Z

Today, New York Attorney General Andrew Cuomo announced a $20 million settlement with Sodexo for overcharging 21 New York schools districts, the State University of New York (SUNY) system, and state facilities that include a center that provides services to abused, neglected and abandoned children.

The $20 million is the largest-ever monetary settlement under the New York False Claims Act that does not involve Medicaid funds.

Yesterday, we touched on Sodexo's "kickback" system that has been alleged to lead to inflated food costs. Here's how it works:

"Food manufacturers like Kellogg's and Pepperidge Farm offer rebates as an incentive to purchasers to buy certain products over others for school meals. These rebates -- which have been called 'kickbacks' from suppliers -- go to the food service companies; it's not always clear if school districts see the benefit, as documented in the In These Times report. While money changes hands, your child is eating Pop-Tarts and drinking sugary, flavored milk."

This investigation by Attorney General Cuomo's office determined that Sodexo "promised to provide goods at cost" but failed to acknowledge these rebates. This resulted in "illegal overcharges to the schools" that were "in violation of the contracts, as well as state and federal laws."

These facilities included:

21 New York school districts
Institutions within the State University of New York (SUNY) system
The Children's Village, a New York treatment center for at-risk-youth, with facilities in Westchester County and New York City,
Abbott House, which provides services to abused, neglected and abandoned children and their families and to developmentally disabled children and adults in the New York City area and surrounding counties.

"This company cut sweetheart deals with suppliers and then denied taxpayer-supported schools the benefits," said Cuomo.

The investigation was prompted when John and Jay Carciero, former general managers for Sodexo in Massachusetts, were "outraged when they discovered Sodexo's practice of pressuring food and beverage vendors to kick back huge rebates and then secretly pocketing the savings," according to a release by the law firm that represented the Carcieros throughout this process.

After John blew the whistle, John says that Sodexo fired him. His brother also was "retaliated against, demoted and later fired for the same reason." These claims were resolved as part of today's settlement.

John Carciero had this to say in light of today's settlement:

"The millions of dollars from the rebates should have gone back to schools and other government clients. Sodexo betrayed the trust of the clients it was supposed to serve and hurt taxpayers at the same time. We went through some tough times because we chose to speak out against what Sodexo was doing."

New York isn't the only state where Sodexo accepts rebates from vendors. Cuomo's investigation revealed that these actions are "common practice" by Sodexo, who seems to have no shame in generating these illegal overcharges at the expense of our schools and of children in need.

Can You Count on Your Contractor?

2010-04-28T20:01:25Z

For school administrators whose first priority is ensuring the children in their school district get the best education possible, it's common to hire contractors to handle auxiliary services such as food service, custodial and maintenance work. Contractors promise to deliver better service at lower cost, with the goal of freeing up tight district budgets as well as scarce administrative time to focus on the district's core educational mission.

However, some school districts--including many who contract with Sodexo--have found themselves trapped in a situation where outsourcing creates more headaches than it solves either because of poor financial performance or poor management and staffing practices. You can learn from their experience--and from a few key tips from the experts.

Learn more here:

Let's Clean Up Sodexo

2010-04-10T00:05:16Z

Click here for article.

Do Private Food Service Contractors Shortchange New Jersey?

2010-04-09T19:51:34Z

A report released by the Clarion Group, in conjunction with SEIU Local 32BJ, has found that during the 2008-09 school year ten New Jersey schools districts "overpaid more than $320,000 in payroll costs to private food service management companies," says the Newark Star-Ledger.

Reporter Bob Considine says that "the report indicates the charges Sodexo and Chartwells levied on schools for workers compensation and liability insurance exceeded the actual cost of obtaining the insurance."

The study's findings - of "overcharges for insurance, the withholding of rebates, and questionable bidding practices," could have been used "to purchase more than 4,600 new elementary school math textbooks." Worse, if what was found in the ten school districts is of any indication of what's happening in New Jersey's 378 districts, the "amount of taxpayer money being misappropriated would come to $12 million" (Hard to Swallow).

Edison school board secretary Daniel Michaud, when asked for comment by Considine, was surprised and said he'd follow up with his district's food service provider for an explanation:

"If there's anything to check, believe me, we'll address it with them...and if there's any overcharging, I'll be going after them for it."

Considine highlights an instance where the West Orange school district "issued an undated 45-page bid guideline for the 2009-10 school year that required bidders to attend a tour of the district's food services facilities" and then submit proposals "three business days later for a contract that began on July 1."

The Clarion Group's Tom MacDermott, who researched the report, said that "the state recommends a 45-day period...that's probably a little excessive, but three days to put together a $3 million piece of business is a little tough."

You can read the full article here, and view the entire report below:

New Report: Profits First, School Kids Last

2010-04-09T19:39:18Z

At a time when schools are facing unprecedented cuts in teachers, staff, and educational programs, school workers and supporters are protesting excessive profits of more than $1 billion by multinational food and facilities service operator Sodexo, a major sponsor of the National School Board Association Conference being held in downtown Chicago.

"Sodexo had more than a billion dollars in profits last year, including money made from struggling schools" says Laura Garza, Vice President of SEIU Local 1. "That money would have benefited kids a lot more if it had stayed in our local communities."

Protesters are delivering a report, "Profits First, School Kids Last: Exposing the High Cost of Sodexo," to conference officials at the Palmer House Hilton Hotel. The report outlines how Sodexo, which provides food service to more than 2.3 million children nationwide, eats into government budgets by failing to provide livable wages and affordable healthcare.

Report highlights include:

While schools struggled to make ends meet, Sodexo's 2009 revenues were up 7.9% (to $19.85 billion) and its operating profits were up 8.1% (to $1.009 billion). Sodexo's education segment brought in $4.5 billion in fiscal year 2009.
Despite Sodexo's sophisticated "anti-hunger" public relations operations, many Sodexo workers, paid as little as $7.50 per hour, qualify for federal food assistance programs, including the Supplemental Nutrition Assistance Program (SNAP, what used to be known as food stamps); the Special Supplemental Nutrition Program for Women, Infants, and Children (commonly known as WIC); and the National School Lunch Program.
Sodexo does not offer affordable health care options to its service workers. Two-thirds of non-managerial Sodexo employees in the United States are not covered by health insurance offered by the company. Many without coverage are forced to rely on government health programs, local emergency rooms, and private charity care.
Estimated profits from a Sodexo cleaning contract in Philadelphia could have been used to hire 87 teachers last year.
In January 2009, Sodexo CEO Michel Landel said of the recession, "This crisis can constitute an opportunity for us." words that now appear prophetic. While schools struggled, Sodexo's North American Education segment grew by 4.5% and is poised to grow further. The France-based company paid between $15,000 and $35,000 to use the school board association meeting as a marketing opportunity.

You can read the full report below:

Take Control of Your Contract

2009-10-23T22:50:13Z

When school districts contract out services they have a right to expect high standards of service as well as financial accountability and transparency.

School meal programs are largely supported by federal and state funds. The use of government grant money entails financial responsibilities for School District Administrators and Board Members. Responsibility for running school cafeterias doesn't end when a contract is signed.

Take a look at - and download - our guide that highlights a few key oversight areas your School District should be aware of when developing Requests for Proposals for school food services. This overview also includes sample standard form contract amendments you may want to consider using to ensure your school meal program is well-run and financially transparent.

Take Control of Your Contract

Appreciation for the workers who help your children make healthy food choices

2009-10-07T20:44:11Z

If you've been in a school cafeteria or university eatery in the past couple of years, you've probably picked up on a few menu item staples: pizza, fish nuggets, nachos, breaded chicken patty sandwiches, and mac and cheese, to name just a few. Processed foods like these with few nutrients but many calories play a sizable role (no pun intended) in contributing to the national childhood obesity epidemic, which has resulted in one-third of all kids in the U.S. qualifying as overweight, obese or even morbidly obese.

Now for the good news: Two new "trends" are helping to make over school lunches in many schools across the nation--nutritional awareness and the local foods movement. As a kid, you don't make meal choices yourself and unfortunately, not all adults care to prepare healthy snacks and lunches for their children, or have the means necessary to do so. Thankfully, there are men and women out there who are encouraging your children to make healthy foods choices at lunch time: food service workers.

Though often 'invisible', food service workers play a crucial role in encouraging those they serve the importance of eating a balanced diet that emphasizes fresh, local fruits and vegetables, while minimizing processed foods.

Food service worker Larry Bryant knows firsthand what a big role food preparation and service often play in influencing food safety and students' healthy eating--he's witnessed it during his four years as a cook at Towson University, which he writes about in an op-ed in The Baltimore Sun:

"Food service workers often make close to poverty wages, and many of us don't have affordable healthcare or paid sick days. Especially with flu season back in full force, workers who serve our kids food should not be forced to choose between coming to work sick and putting food on the table for their own children.

"There is a bill in Congress right now, the Child Nutrition Act, that can help address these issues by increasing the nutritional quality of the food and ensuring the cafeteria workers who prepare these meals receive decent wages, health care and paid sick leave."

Some of the most hands-on advocates for the well-being of our nation's children don't receive anywhere close to the care they provide in return--but Congress has the power to do something about that. Changes to the Child Nutrition Act present our best chance to put healthier foods than pizza and burgers on school lunch trays, as well as increase wages and health care benefits to a level that can sustain families.

Tell Congress why a real Child Nutrition Act is important to you.

Tell Congress: Get It Right on Child Nutrition!

2009-10-02T18:15:06Z

Click here

Tell Congress: Get It Right on Child Nutrition!

2009-10-02T18:03:50Z

On September 30th, the Child Nutrition Act expired.

The Congressional Committee on Education and Labor, which oversees the Act, had the opportunity to improve the lives of our children and those that feed them.

But rather than pass a bill that would create a program that works far better, they simply decided to simply take a pass for the next few months.

The result is a year-long, temporary extension that keeps the program exactly as it is today: a program that leaves children hungry, places a burden on our school districts, and leaves school food workers without the resources to cook nutritious and healthy school meals.

We need to tell the Committee members that this isn't acceptable. In the midst of the Great Recession, there's no better time to fix these problems than right now.

In the next few months, the members of the Committee will once again take up this legislation. But we can't hold off until then. We need to tell them right now that a real Act - with real improvements - must be authorized.

We've laid out common-sense ideas like expanding enrollment, giving sick days to school food service workers at a time when the swine flu is spreading, supporting fresh and local foods, and better transparency in how taxpayer funds are spent. These are real solutions that can benefit our children each and every day.

Now, we need you to tell the Committee members why a real Child Nutrition Act is important to you. In the next few days, we'll hand-deliver your messages to the members of this Committee.

Write to the Congressional Committee on Education and Labor right now: http://action.seiu.org/page/s/cnaexpiration

Fun Video: Students Want Better Food

2009-09-28T16:01:25Z

When food comes to you wrapped in plastic, you just know it's going to be delicious, right?

...Or not. Students in San Francisco are begging to differ. Assisted by the SFUSD Student Nutrition and Physical Activity Committee, these students have produced a short film about the state of school lunches and what's being served to them as "food." And yes, the quotes are, indeed, intentional.

"Our school lunch comes wrapped in plastic--lots of plastic," high school senior Tristan Leder says in the video. "It's all food that was cooked somewhere else a long time ago, and frozen and shipped here. Our schools don't just cook anymore. They just reheat it."

According to The Mommy Files, a blog on SFGate.com, Dana Woldow, the co-chair of the SFUSA Student Nutrition committee "says the video grew out of a desire to ask Congress to put more money toward school lunches":

"It was deemed not practical to spend time trying to arrange to bring actual school food into the halls of Congress. But the idea was to make a short film showing what schools can typically afford to serve given current funding levels, and what would be possible if schools received $5 per meal, instead of $2.68."

Woldow, of course, is referring to the Child Nutrition Act, which expires in just a few short days from now. It's the best opportunity we have to make sure that our children receive the best school meals that they can possibly get.

If you haven't already, write your Congresspersons and let them know that they need to get behind a stronger Child Nutrition Act that supports fresh and local foods.

How Poverty Jobs Are Created

2009-09-23T21:20:25Z

In this month's American Prospect, David Moberg writes an exposé on how government contracts are creating poverty-wage jobs. Through the story of New Jersey school cafeteria worker Ada Iglesias, Moberg personalized the connection between the federal dollars and a struggling family.

Here's an excerpt:

"Ada Iglesias relies on her job as a cafeteria worker at Paramus High School in New Jersey to put food on the table for three hungry, preteen children. It's not easy. She makes $8 an hour, works only 24 hours a week, and while out of work over the school's summer recess, does not qualify for unemployment compensation. Her construction-worker husband, out of work for more than six months, also draws no unemployment insurance.

Feeding kids healthy meals is her job as well as her mission as a mother. Iglesias works for a company named Pomptonian, which contracts with the local school district to deliver the free and reduced-price lunches that are provided through the Child Nutrition Act. Federal funding through the Department of Agriculture provides most of Iglesias' paycheck. But like many service workers with poorly paid, precarious jobs, her family still struggles with poverty even as she works for a federal program designed to fight poverty and hunger."

The article goes on to discuss why federal dollars are often outsourced to private companies - usually, to save money. The reason for the savings is generally because of significant cuts in wages and benefits to workers who were previously employed through federal funds:

"But a study from the Rutgers University Center for Women and Work concluded that 'the majority of cost savings derive from the significant cuts in wages and benefits for food service workers who previously were employed by the school district -- as much as $4.00 to $6.00 an hour' plus elimination of health insurance."

The article is definitely worth reading. You can take a look here: http://www.prospect.org/cs/articles?article=which_side_is_government_on

Washington Post Editorial: "School Lunch Punch"

2009-09-21T16:48:23Z

The Washington Post has published an excellent editorial piece on the Child Nutrition Act. In it, the newspaper's editorial board preaches the "wisdom of spending more money to provide healthier meals."

The board says that they're "encouraged that there's a growing movement to do something about" food that "isn't good" for children. As a "Washington Beltway" newspaper that's seen its fair share of movements and supposed movements, those aren't words that they throw around all-too-often.

The Child Nutrition Act, says the editorial, "is up for reauthorization by Congress next month," and President Obama "has signaled his interest by including an extra $1 billion in his 2010 budget proposal for school food improvements."

The board states that while there are "enormous financial pressures facing the nation," there "is also no denying that what children are eating today carries its own costs in the form of increased obesity, incidence of diabetes and earlier deaths."

You can read the full editorial here: http://www.washingtonpost.com/wp-dyn/content/article/2009/09/20/AR2009092001966_pf.html

Remember The Lunch Ladies?

2009-09-15T15:41:58Z

You remember the lunch ladies, don't you?

Today, these women and men are called school food service workers, and with more children in poverty than ever before, they serve as the advocates for better and more nutritious school meals.

But in a few weeks, a piece of legislation called the Child Nutrition Act, which funds our school meals, is set to expire.

Now is the time to get the word out. Today, we're releasing a new video that explains the Child Nutrition Act and why it's important - in a retro style that you might remember from your own days at school.

Watch this and then sign our letter to Congress:

Even though the Act was first passed in 1946, many of the same problems still remain today.

Many school food service workers still don't have sick days, even as schools begin to prepare for the swine flu.
There aren't enough fresh and local foods for school food service workers to prepare a nutritious school lunch with. Canned foods remain the norm.
Due to inadequate access and eligibility, many children aren't ready to learn in the morning or afternoon...because they simply haven't eaten.

With the Child Nutrition Act expiring so soon, we need everyone - parents, teachers, educators, and nutrition advocates - to get behind a new, improved Child Nutrition Act.

Watch the video, and then sign our letter to Congress:

http://action.seiu.org/lunchladies

Remember The Lunch Ladies?

2009-09-15T14:52:54Z

Click here.