Struggling to Survive: The European Parliament's Contract Caterer in Crisis
EU Parliament Set to Lose Catering Services Due to Workers' Job Concerns
In the heart of Brussels, Compass Group, the European Parliament's long-standing contract caterer, is battling to survive in the wake of the pandemic. Struggling with profitability, the company has been forced to call it quits, leaving essential workers in a state of worry over their future employment.
The Parliament outsources a variety of internal services, including management of cafeterias, canteens, and office cleaning, to private companies. Compass Group, having operated within the Parliament since 2015, found itself unable to overcome the financial setbacks brought about by the pandemic. After the Parliament refused to respond to a request for increased subsidies, Compass Group decided to terminate its contract early, set to expire on June 30th, without reapplying for the main staff canteen tender[1].
Despite withdrawing from the main canteen, Compass Group has applied for tenders overseeing MEPs catering and bar services. The outcomes of the new tenders for the three services will be announced soon, adding to the uncertainty surrounding the workforce[1].
"Since the end of COVID, [Compass] has experienced significant losses as a result of the pandemic, and we've had to gradually recover. Things were never quite the same after that. Parliamentary activities also resumed gradually - it wasn't an immediate return to normal," a source familiar with the matter explained[2]. The main canteen of the European Parliament in Brussels is believed to be the most unprofitable service for Compass, with the company allegedly registering roughly €60,000 of loss per month[2].
Fear and Uncertainty among Staff
Under Belgian law, new contractors taking on tenders from the outgoing suppliers must retain the previous workforce for the first six months. Afterwards, they have the option to revise their budgets and propose restructuring due to unprofitability. However, new catering contracts could imply some job losses, due to lower tender values, reduced subsidies from the Parliament, and higher costs for the companies[1].
Employees are understandably concerned about the potential losses and the risks of restructuring. "We don't know if we'll have more work, less work, or even if we'll still be allowed to do our jobs after the transition. That uncertainty causes a lot of stress and fear in our daily lives," said a Compass Group employee[3].
Similar difficulties are being experienced by ISS Nettoyage, the cleaning services supplier for the European Parliament, which has still not decided whether they will reapply for the tender once their contract expires in August 2026[3].
The European Parliament's press service has asserted their commitment to maintaining the highest standards, including adherence to national legislation, collective agreements, and regulations concerning employment rights, accessibility, environment, and food safety[3]. Contracts are awarded based on the overall value, with an emphasis on social factors such as workforce management, training, staff well-being, and inclusiveness[3].
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Sources:1. "European Parliament's key caterer quits over pandemic-hit profits, leaving staff concerned about jobs"2. "Compass Group struggles with unprofitability, prematurely ends European Parliament contract"3. "The European Parliament's catering turmoil: Uncertainty, job losses, and stress for employees"
Due to Compass Group's financial struggles, they have applied for tenders to maintain MEPs catering and bar services, while their profit-draining main canteen contract comes to an end. The ongoing uncertainty poses risks for the workforce, as employees fear potential job losses and restructuring measures.
As a result of potential financial difficulties, the new catering contracts may lead to job losses for employees, due to lower tender values, reduced subsidies from the Parliament, and increased costs for companies.
