In a short media statement, Sodexo said: “By mutual agreement, Sodexo’s contract with BSUH will expire on 31 July 2015. After this date, facilities management services at BSUH will be provided in-house by the Trust.
“BSUH and Sodexo will work closely to ensure a smooth transition of services. Employees have been informed of this decision and will be communicated with and consulted with appropriately."
The five-year contract worth £15m was awarded in 2013 and includes catering, portering, cleaning and housekeeping at the trust’s two main sites – Brighton’s Royal Sussex County hospital and Princess Royal hospital at Haywards Heath.
Gary Palmer, the organiser for GMB, the union that represents staff at the Trust, said "We have always been clear from day one that we wanted to see all services provided by Sodexo returned in house and to the NHS where they should be.
“We have been made aware of on-going issues with the service provision for some time through GMB representatives on the NHS staff side forums.
“Recent concerns raised by the GMB over staffing and material shortages, and a reluctance from Sodexo to enter into an agreement to pay a living wage gave us the very strong feeling that an announcement on a possible contract exit were imminent.”
A spokeswoman for Sodexo, though, said the announcement of the ‘early cessation’ of the contract had been agreed among the contractor, the Trust and the union.
She said: “There have been a number of issues involved here, some of which are confidential and I can’t go into.
“However, it is unfair to say the decision has been caused by an unwillingness on our part to discuss the Living Wage. As a company we support it, pledge to pay it in our head offices, to include it as an option in all bids and to actively promote the adoption of the living wage to all our clients.
“And we will support the idea in the negotiations with the Trust and the GMB over how the contract is handed back and then carried forward.”