Sask. government announces move to private custodial contractors, saving $3.5 million and cutting public jobs

Cleaning services at government-owned buildings will soon be handled by private contractors. The government says this is expected to save $3.5 million annually.

In January, the Saskatchewan Government and General Employees Union (SGEU) said a move like this would cut 251 custodial positions. SGEU said this includes 139 full-time jobs, 59 part-time positions and 53 are non-permanent.

Since then, some terms have expired and the ministry did not fill certain vacancies, and the number of impacted employees is now 230.

According to the province, thousands of bids were received for contracts on 95 buildings from 65 firms. Six of the 12 successful firms set to receive contracts are employee-owned companies.

“The savings in the bid submissions have demonstrated the Ministry can save $3.5 million annually, helping the Province save money during the current challenging fiscal times,” Minister of Central Services Christine Tell said in a statement. “While we have a few more steps in the process to actually award contracts, we are comfortable the savings are there and have made the decision to proceed.”

READ MORE: Saskatchewan government explores privatizing government building cleaning services

Deputy central services minister Richard Murray said it currently costs the government $11 million to cover cleaning. They estimate that the private sector could do it for $7.5 million based on the cost of cleaning per square feet.

“We already have private sector cleaning in 30 buildings from Saskatoon, Lloydminister, and the north, and they do a great job of quality assurance there,” Murray said.

The government release adds that all 12 of the successful firms are Saskatchewan-based companies.

“This is an excellent opportunity for the Saskatchewan business community. The successful firms moving on range from well-established companies to smaller, employee-operated businesses,” Tell said. “Additionally, all firms have offered to hire current cleaning employees.”

There is no concrete figure for how many custodians will be hired by private firms, or how there pay will be impacted.

Current cleaning staff were notified of Monday.

In a release, the SGEU is calling this “an ideologically-drive, mean-spirited move”.

“My heart goes out to these workers, and their loved ones, who are under enormous stress, wondering how they’re going to pay their bills come June,” SGEU President Bob Bymoen said. “It’s shameful for government to be making its lowest-paid, most vulnerable employees pay the price for its own financial mismanagement.”

“Cleaners deserve better than this. Now they’ll be able to re-apply for their jobs at less pay. Where is the economic sense in that? Cutting these living-wage jobs will mean less money spent in local communities, more poverty-line wages and more people having to rely on our social safety net,” Bymoen added.

The opposition NDP argue that if the government is looking to save money they should be cutting from the top first.

“Their first instinct is to go to the cleaners who make again… I’ll be interested to see what the updated figures are, who make on average $41,000 a year. It speaks volumes to the priority of this government,” Opposition House Leader Warren McCall said.

The Ministry of Central Services will not start negotiating with the 12 companies, and expects the private cleaning companies to begin working in government buildings on July 1, 2017.

The average wage for cleaners is $19.20 per hour. Wages can range from $16.50/hour to $20.70/hour.