The University of the South Pacific dining hall has been running on losses since 2004 and that is why the USP will outsource the facility, says acting registrar Lily Vesikula.
Ms Vesikula said USP was in the process of completing its outsourcing of food delivery across all areas of the Laucala Campus in Suva.
"There are a number of reasons for this. First, the dining hall has been running at a loss for the past five years and the university is taking immediate measures to change this," she said.
"Second, staff and students tend not to patronise this food outlet and eat elsewhere. Third, going forward, the USP is seeking to establish a vibrant campus life for its community."
The deficit in 2008 rose to $634,000, which led to some staff layoffs in 2008 and early 2009. In 2008, the USP Council decided to hand meal allowances to the students, instead of being paid directly to USP for dining hall services.
This lead to students eating at places of their choice.
The USP Permanent Hourly Paid and Intermediate and Junior Staff Union has claimed the current system of food allowances for USP students who stay on campus has resulted in poor nutritional intake.
A statement issued by the union said the Solomon Islands Government had asked the USP to revert to the old system, where the money is paid directly to the USP and to the dining hall.
The initial decision was made after a proposal by the Cook Islands Government after complaints by the students that the dining hall was not up to standard. The decision led to loss of revenue for the dining hall, and now to cope with the losses, USP has decided to outsource dining hall services.
This will result in the loss of 28 jobs.
Union spokesman Noel Tofinga said the union was still working on how to make profits when the USP decided on redundancies.
Meanwhile Ms Vesikula added that the final outsourcing of the food court would fall in line with the expressed desire by USPSA to be free to have a choice and not be tied to existing eating arrangements.
"The Laucala Campus Students Association made a request to the University Council in June, and again in October this year, for the addition of cooking facilities in the halls of residence" she said.
Ms Vesikula said with respect to the 25 USP dining hall staff, USP has undertaken wide consultation and has been closely working with affected staff, unions and management since June 2009.
The package offers employees two weeks pay for every year of work and salary until March next year.
According to USP, outsourcing of the dining hall was a decision that had to be made.
Another USP union claimed that poor decisions and work attitude led to the downfall of the dining hall.
