Custodial outsourcing going before Board

Source: Hillary Garvin, Beloit Daily News, June 4, 2013

According to the latest numbers from the School District of Beloit, outsourcing their custodians and maintenance staff would save the district $3.1 million over the first five years, while cost savings offered by Local 1475 AFSCME, AFL-CIO, the union representing the custodians, would only save $663,558….Those in favor of the outsourcing say the long-term savings are significantly greater by going with private vendor ABM, although AFSCME staff representative Jeff Middleton said the cost of selling the district’s assets and losing local control outweigh the savings. Middleton also said the district has shifted numbers over the past weeks in regard to how much ABM would actually save the district. Middleton went on to say the list of equipment, paid for by taxpayer dollars, should be made public. Trucks, mowers and other equipment will be given to the private vendors as part of the contract….

…According to the district’s numbers, outsourcing would save the district $3.1 million because of labor savings, worker’s compensation premium savings, cleaning chemical savings, VEBA trust allocation and equipment pay outs. The district would receive about $50,000 a year for 60 months for the equipment it is transferring to ABM as part of the potential contract. The union’s proposal would save $663,558 because of no vacation payouts for 2012-2013; no transfer of funds from HRA to HSA; no offer of payout for employees with more than 60 days of accrued sick leave; reduction of 10 paid leave days to seven; two custodial position cuts through attrition; pay freeze for all unit members, performing painting services, voluntary employees’ beneficiary association (VEBA) trust allocations and a reduction in starting wage. Middleton said outsourcing rarely achieves what it is proposed at the beginning….