Spotless Services, the company whose workers are in the middle of ongoing strike action at 18 of the country's major hospitals, has lost one of its biggest health board contracts.
Waitemata District Health Board has dropped the Australian-owned company from its food catering contract and, instead, will useinternational catering giant Compass Group's healthcare arm Medirest.
The decision was made at a board meeting last Wednesday, although Spotless Services was not informed until yesterday.
The decision was not influenced by the current industrial action, a board spokeswoman said.
The contract had gone to a competitive tender process, she said. After evaluating the different companies' proposals, the board chose Medirest.
Spotless Services healthcare services general manager Mark Russell last night confirmed the news. He said Spotless was disappointed at the outcome, but it was part of normal business practice for organisations to review contracts and exercise their right to change providers.
"It is part of operating in a very competitive business environment. It is no reflection on our staff, who continue to deliver outstanding service and who will also, naturally, be feeling a sense of disappointment."
Counties Manukau District Health Board chief operating officer Ron Dunham, whose board has a contract with Spotless Services for kitchen, laundry and orderly services, said yesterday that contract would be up for renewal later this year.
The board could roll the contract over, allowing Spotless Services to continue without having to re-bid for the work.
Alternatively, it could be put out for tender or brought in-house, Mr Dunham said.
But, he said, it was very unlikely the Spotless Services contract would be rolled over. Auckland District Health Board does not have a contract with Spotless Services.
About 800 Spotless Services hospital workers, including about 300 at Waitemata's North Shore and Waitakere Hospitals, went on strike on Wednesday.
They are now set to go to arbitration with the health boards to determine who will pay for the wage increase, agreed to by both parties more than nine months ago.
Compass Group employs 450,000 people in more than 90 countries and currently holds New Zealand hospital service contracts at eight of the country's 21 health boards.
