Tennessee Tech Moves to Outsource Custodial Services, Balancing Budget with 80 Workers’ Lives

Much could have been done to avoid this bad outsourcing decision. As campuses around the state and country utilize student fees to generate energy savings through efficiency, Tech as an institution – under the leadership of Dr. Claire Stinson, Vice President for Business and Planning, and President Bell – is headed for the shoals. Just last Wednesday, Governor Bill Haslam announced, “Increasing energy efficiency in state government will help us be even better stewards of both taxpayer dollars and our environment.” Compared to other schools like ETSU and UT Knoxville, which made cutting supply costs and energy expenses a key part of their response to the budget crisis of the recession, Tech chooses instead to cut costs on the backs of some of the least paid people on campus. “I can’t support my household on minimum wage – it’s just not possible,” said another custodian, the sole wage earner for her family. "Plus we know there are ways to stop this, and things that can fill the budget gap, like the energy savings that the students themselves chose."

In addition, outsourcing with Service Solutions is exactly the decision that the Knox County School Board just voted against. In their meeting November 2, board members voted 5‐4 not to enter into a contract with Service Solutions, despite heavy lobbying. Years ago, UT Knoxville canceled their contract with Service Solutions after a disastrous beginning. Why is Tech buying into the losers?

Despite what Tech officials project about cost savings with this outsourcing move, past experience has shown that the costs come back. The cost to the Cookeville community by a major employer from lost jobs and lost health insurance strains the already fragile social safety net. In addition, Tech will spend money on employee turnover, repeated training, and contract overages, and the state will be charged immeasurable money in the way of buildings deteriorating from poor upkeep. Taxpayers are handing over tens of millions of dollars in infrastructure to a company whose mission is to realize its own short‐term profits.