With the current contract for Brown Dining Services workers set to expire at midnight tonight, the potential outcome of ongoing negotiations for a new contract could alter the financial relationship between Dining Services and the University.
Dining Services currently operates as an auxiliary business, meaning it is run by the University but financed independently. In addition to Dining Services, other auxiliary operations include the Brown Bookstore, the Auxiliary Housing Office, University Health Services, the Parking Office and the Faculty Club. These programs generate their own revenue, and the University largely expects them to finance themselves.
As part of contract talks, union representatives are seeking improved benefits, including those relating to health care costs. According to Sharon Mulligan '06, an organizer for Service Employees International Union Local 615, which represents Dining Services workers, union representatives believe it would be reasonable for the University to finance improved benefits.
"(Dining Services) is not a separate for-profit institution," Mulligan said. "This is offered as a service to Brown students." Therefore, the University should pay for new benefits if the Dining Services budget can't cover them, Mulligan said.
However, it remains to be seen whether improved benefits will ultimately be granted and whether the University may see fit to finance them, according to Michael Chapman, vice president for public affairs and University relations.
He added that the University rarely has to subsidize such auxiliary businesses. "They basically pay for themselves," Chapman said, noting that he does not believe the University has ever subsidized Dining Services.
Revenue from Dining Services currently covers all of the business' costs, including food expenditures, workers' salaries, workers' health care and upkeep, according to Chapman.
At the end of the year, some of the business' profits go toward capital improvements, such as replacing stoves, refrigerators and other equipment. Other profits go to the University, Chapman said.
Because negotiations are ongoing, Chapman said he could not comment on whether the budget of Dining Services might be able to cover improved benefits without help from the University.
