Agenda item

The Executive Director of Resources and Section 151 Officer, Lorna Baxter, and the Director of Property and Assets, Vic Kurzeja, have been invited to present a report on proposals for the Council’s cleaning service.

The Committee is asked to consider the report and raise any questions, and to AGREE any recommendations it wishes to make to Cabinet arising therefrom.

The annex to the report is exempt from disclosure.  The information in this case is exempt in that it falls within the following prescribed categories: 3. Information relating to the financial or business affairs of any particular person (including the authority holding that information) and since it is considered that, in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information, in that a negotiation is ongoing and would prejudice the position of the authority in the process of that negotiation and the Council’s standing generally in relation to such matters in future, to the detriment of the Council’s ability properly to discharge its fiduciary and other duties as a public authority.

The annex to the report is exempt from disclosure.  The information in this case is exempt in that it falls within the following prescribed categories: 3. Information relating to the financial or business affairs of any particular person (including the authority holding that information) and since it is considered that, in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information, in that a negotiation is ongoing and would prejudice the position of the authority in the process of that negotiation and the Council’s standing generally in relation to such matters in future, to the detriment of the Council’s ability properly to discharge its fiduciary and other duties as a public authority.

The Chair stated that items 5 and 6 would be grouped, with reports introduced and discussed separately, since both required parts to be addressed in a private session.

The Committee invited Cllr Dan Levy, Cabinet Member for Finance, Property and Transformation, and Cllr Sean Gaul, Cabinet Member Children and Young People, Stephen Chandler, Executive Director of People,, Lorna Baxter, Executive Director of Resources and Section 151 Officer, Vic Kurzeja, Director of Property and Assets, and Anthony Hulsman, Head of Property Operations, were invited to present a report on proposals for the Council’s school catering service and one on the corporate cleaning service.

The Cabinet Member for Finance, Property and Transformation introduced the items and mentioned the need to discuss these items in a private session owing to commercial sensitivities. The focus was on making efficiencies for financial reasons, ensuring fairness to those involved, and maintaining service quality.

The Director of Property and Assets provided a short presentation on School Catering Services and explained the background and reasons for the proposed changes in the catering services. He highlighted that the current delivery model was not financially sustainable, even after implementing several efficiencies. The service could not break even owing to insufficient volume and the need to increase meal prices to an unreasonable level. The Council needed to consider alternative solutions.

Members asked about competitors and it was established that the main competitor was the Oxford Lunch Company, which had been bought out, although there were several other competitors.

The number of rural schools serviced was highlighted, with a focus on small village schools that could not sustain on-site catering facilities. The implications of contracting out services for these rural schools were discussed, emphasising the need to support them through delivery services.

Members were keen to confirm that the quality of food would be guaranteed by engaging leading catering services that adhere to the same standards of quality and nutrition. The Committee was given that assurance.

The Director of Property and Assets provided a short presentation on the Corporate Cleaning Service. He explained that the Council had previously outsourced 50% of its cleaning services, which had resulted in significant savings and maintained high service quality. The proposal was to extend this outsourcing to the remaining cleaning services, including several schools, to further reduce costs and improve efficiency.

Following the overview of corporate cleaning services, it was confirmed that several schools would be affected by the proposed contract and that a number of these schools were small rural schools.

After the introductions, the Committee resolved to exclude the public for the duration of the items under discussion as the information provided in Annex 1 to each report were deemed to contain exempt information and the public interest was weighted in favour of considering the information in private as the information related to a current commercial negotiation. 

In discussion about the School Catering Service, the Committee explored the following areas:

• It was confirmed that there would be no redundancies, as all staff would be transferred under Transfer of Undertaking (Protection of Employment) (TUPE) regulations, with their terms and conditions maintained.

• Due diligence to consider local partners. It was explained that the focus was on finding specialised catering organisations with the same values and principles. It was noted that some local providers were identified, and the preferred direction was to keep the business within Oxfordshire.

• It was confirmed that diversifying the catering contract into other areas such as adult social care was explored, but it was determined that the risks and benefits did not justify the expansion. The focus remained on improving the current school catering service.

• It was confirmed that the impact of rising free school meal eligibility without a commensurate increase in Government reimbursement posed a significant risk to the business, as the number of children eligible for free school meals was expected to continue to grow. This would strain the budget further.

The Cabinet Member for Children and Young People indicated that the Schools Forum appreciated the economic rationale for outsourcing catering and cleaning services. While some concerns were expressed, especially in relation to rural schools, the necessity of the proposed measures was recognised.

The Committee resolved to NOTE the report and members were content for officers to use their judgment and due diligence when it came to deciding which of the options proposed in the report should be recommended to Cabinet.

The Committee then focused on Corporate Cleaning Service outsourcing. The Director of Property and Assets reported that initially outsourcing 50% of services had saved costs while maintaining quality. A proposal was made to extend outsourcing to all cleaning services, including seven schools, aiming for further savings and operational efficiency. The Council sought to reduce financial exposure, keep two area managers for contract oversight, and build on the previous successful transfer to Parkers.

Under the previous arrangement, all staff had been transferred to the new provider, with only one redundancy. The Head of Property Operations noted proactive union engagement to protect staff terms, conditions, and pensions, all honoured by the provider through a pass-through contract.  

The Committee explored the following in discussion:

• It was confirmed that the contract would affect seven schools and various corporate sites, including County Hall and other council facilities within the city.

• It was confirmed that all staff members would be transferred under TUPE regulations, ensuring their terms and conditions, including pensions, were protected.

The possibility of future redundancies was acknowledged but the primary goal was to protect staff and to maintain their employment terms. Additionally, it was emphasised that vulnerable workers would be protected, and the new contracts would ensure that their needs were considered and supported.

• Whether retaining only two Area Managers and part funding the Operational Manager was sufficient. It was explained that two Area Managers would be retained to manage the contracts and ensure service quality. This decision was made after assessing the workload and engaging with the area managers, who confirmed that they could effectively manage the contracts with the adjusted responsibilities.
• Trade union engagement and communication with directly affected staff.  It was explained that the unions would be engaged once approval was received, and all documentation would be shared with them.

The unions had been involved in the previous tender process, ensuring terms and conditions, including pensions, were protected. The intention was to replicate this process, ensuring the chosen provider recognised unions. Communication with staff would include informing them of the situation, their rights under TUPE, and offering support through well-being services and direct engagement opportunities.

The Committee AGREED to make recommendations to Cabinet relating to both reports under the following headings:

• That the Council should work to ensure that rural schools are protected and receive high quality catering services.

• That the Council should ensure that the rights of existing staff members will be protected, and that trade unions will be consulted and engaged throughout the process.

The Committee resolved to end the exclusion of the public and to return to public session.