Custodial Outsourcing

This afternoon the Knoxnews website reported that Alcoa has hired GCA Services for its janitorial service. GCA Services has and continues to operate a local office in Knoxville. Alcoa will save $1.8 million yearly. How much could Knox County Schools put toward resolving their budget crisis, a previous report that the school board received in June 2005 said $2.5 million if they outsourced the entire county.

According to Knox County Mayor Mike Ragsdale Its Time.

That's where school board members and the mayor may disagree.

"If it were me and I were looking at it, I'd put my emphasis on outsourcing janitorial services which could save two to three million dollars per year and switching employees over to the Knox County insurance plan, which would save another two to three million dollars a year," Mayor Ragsdale said.

"While the school system has a tough budget situation, I think they need to work through it and they will," he added. "And I hope they focus on priorities, and that's what goes on in the classroom." source is WBIR.com

Here is the KnoxNews story.

Alcoa hires private janitorial firm
By REBECCA FERRAR, ferrarr@knews.com
February 23, 2006

Alcoas Tennessee Rigid Packaging Division plans to contract out its janitorial work, saving the company $1.8 million a year.
Graeme Crothall Services Group (GCA) of Philadelphia will handle the work. Twenty-two Alcoa employees will be affected, but Alcoa spokeswoman Melissa Copelan said workers will be offered positions within the company or will be able to retire.

"We do not expect any layoffs," Copelan said. The change is effective April 1. Copelan said all employees have been notified. She declined to release the value of the contract, which includes cleaning bathrooms, break rooms and bathhouses.

"This announcement represents the first step for Alcoa to take looking where outsourcing could occur," Copelan said.

GCA has a Knoxville office and already works for Denso of Maryville.

Copelan said Alcoa looks at four criteria when deciding to outsource work: cost effectiveness, the size of the job (large jobs may be more effectively done on a contract basis), the need for specialized skills, and short-term work assignments.

Alcoa followed the guidelines in the union contract with the United Steelworkers in outsourcing the sanitation work, Copelan said.

The company is considering contract workers in 20 to 25 other areas that Copelan declined to identify.

Dwight Sypolt, spokesman for GCA, said the company expects to add 22 new employees to handle the Alcoa work.