I doubt that taking the service in house is even an option for FGW as it is something they simply won't want to do and there are many companies out there who can deliver the service.
Without commenting on this specific situation although the use of zero hours contracts for a stable, timetabled service (other than casual staff at times of extra demand) seems very strange and an expensive way of getting staff.
I have procured a lot of external cleaning contracts and have the following comments to make on the industry as a whole:
- There are good and bad suppliers out there
- Bad suppliers can have good people (both operatives and managers)
- It makes sense in my view that this is an outsourced service as there is an experienced supply base out there who are likely to be almost certain to make the service work
- However, a properly managed in-house service could also work well
- Good suppliers value their staff and look to retain and develop them (I know of companies who have had staff for 20+ years) as this makes good business practice due to reduced recruitment costs
- Paying cleaners too little is a false economy (i.e. less than the London Living Wage or local equivalent) again this is due to recruitment and training costs
- Many problems in outsourced cleaning are due to poor procurement which does not value staff and focuses too much on either a prescribed service that does not allow innovation or the initial headline cost
- With cleaning you are buying people and this must be remembered throughout the procurement process
- Contract management should be based on a range of objective criteria which include softer factors, such as training and staff turnover, as well as cost and meeting key service areas