In all the other franchise changeovers, staff get a new uniform and carry on. So why do people assume half of the Virgin train staff will be sacked tomorrow (I mean, why wait until December?!).
I realise Virgin has always been Virgin on the WCML and so the staff here don't know what happens when a new operator takes over, but it's really not that big a deal. When the bids are opened up, we'll no doubt discover that staff were about to find some rather big changes were going to be made even if Virgin had continued.. it wasn't just going to be business as usual with much higher premiums having to be paid.
And while any individual members of temporary staff might be worried (but they already knew they were going come December anyway), if First is merely planning to outsource many of these jobs to another company - you do of course have a few hundred people (or more) actually quite looking forward to the prospect of getting a job.
What's to say the people currently in a job can't transfer to the company that will land the catering contract? In fact, the existing staff may well be put forward to get first refusal for these jobs. Yes, they may have new terms and conditions, or lower pay, but it doesn't necessarily mean NO job. No job is for life these days, least of all the ones that are fixed term contracts in the first place!
FWIW, fixed term contracts can be very good for some people - often paying higher rates than a permanent job (the extra being for the fact you'll be looking for another job at the end of the term).