This is just me but when you outsource you lose control of the final product. Contract staff have no emotional buy-in to the company. They don't care whether Virgins customers are happy or not.
Not true at all. My wife worked for the old company and she and her collegues gave their all for both the company they were working for and to Virgin.
They don't work for the airline, get none of the staff benefits and have no engagement the way the airlines employees do.
If I am not mistaken many of the perks for working for an airline are long gone, especially at Virgin where there were not that many to start with.
Yet to the customer they are providing virgins service and are a reflection upon the company. Why should the customer care whether their barista is a contractor or not?
True, at the end of the day it makes no difference to the customer and in most cases to the employee too.
I do think they should employee their own lounge F&B staff, it may be more expensive in $ terms but then they would have people in there who are passionate and care about the company the way the rest of the staff do. The service they are providing is likely to be a product of how they feel about their employer, which may or may not be a positive one.
The only advantage this would give is career progression. At the end of the day the problem with jobs like this is attracting and keeping the good staff, however what tends to happen is the good ones come and go and the ones with no option left stay.
This is exactly what happened with my wife. She is a foreigner from a non english speaking background and started working for CLM (the company that had the contract previously) when she moved to Australia earlier in the year. She had no trouble getting the job with her previous experiance as a shift manager at a busy chain coffee shop in the UK, however the company had issues getting people to work there and keeping them. Many would only stay a short time and get sick of the hours, not surprsing with two basic shifts on offer, one starting at 4:45 and finishing around 1-2pm and the other starting around 1 with finishes scheduled for 9pm, but due to flight delays could be as late as 10, 11 or even once or twice after midnight. All this for the basic pay plus a parking allowance. Coupled to this they have to pay for their own security pass, which cost my wife $200 plus police checks in her native country and the UK where we lived, so all up it cost $500 just to be able to start, or in other words she worked a week for free.
Anyway my wife bucked the trend and stayed for a good 9 months and gave her all, however the change of company meant she no longer had any loyalty so she started to activly look for a job elsewhere which she got. Interestingly her loyalty meant even though she had a new job she continued to work in the lounge up until the contract change over dates when she could have just pulled the pin and left the company 1 staff member down, which when there are only 8 people or so would have caused some hurt.
So really if you want the best lounge staff, making them company employees is not the pancia, what they need is good pay, a reasonable mix of hours including some day shifts and a career path.