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Company: Custodial deal for S. Ind. schools costly
Updated: Wednesday, 28 Nov 2012, 4:11 PM EST
Published : Wednesday, 28 Nov 2012, 4:11 PM EST
NEW ALBANY, Ind. (AP) - A Maryland company is ending its contract to provide custodial services to a southern Indiana school system because it's losing money.
Vice President William Yaglou of Gaithersburg, Md.-based Sodexo Inc., told the board of the New Albany-Floyd County Consolidated School Corp. this week his company has lost about $750,000 in the first year of the three-year contract.
The Courier-Journal of Louisville, Ky., reported Wednesday that Sodexo exercised a clause to end the deal that paid it $2.15 million per year, effective Jan. 24.
Sodexo agreed to hire custodians willing to work for the same pay and fewer benefits, but Yaglou says more employees than expected kept their jobs. It also miscalculated other costs.
Deputy Superintendent Brad Snyder says it's a bad situation for both Sodexo and the school district.
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