The most recent instance of contracting out, however, was less successful. Over the past several years. Harvard has gradually given all but two of its graduate dining halls to catering companies. But in January, when Harvard tried to contract out the School of Public Health (SPH) food services, union pressure forced the University to back down, said Dominic Bozzotto, who heads the food workers' union here. International Hotel, Restaurant and Institutional Employees and Bartenders' Union Local 26.

Bozzotto is probably the most outspoken opponent of contracting out of all local union leaders, and has been the most successful in resisting what some see as an all consuming trend. The food service workers have the only contract which declares that no workers can be laid off or suffer a reduction of hours as a result of Harvard's contracting out.

Bozzotto described the clause as a major victory, adding "contracting out weakens the bargaining unit, it decimated Buildings and Grounds and the maintenance union."

"It's a terrible policy," agreed Edward Childes, Adams House cook and co-chief shop steward for the union. "It's a way to undermine the unions," he added.

Bozzotto said the contracting out clause is one of the victories won during the day-long food workers strike last year. As a result, Harvard's conversion to catering is only possible through attrition Annual turnover at the graduate halls averages about 50 percent, according to Powers, while the College food service turnover is between 10 and 20 percent.

Powers said there is no serious talk of contracting out any of the undergraduate halls because the low turnover would make the attrition process far too costly.

Also, College food services employees tend to be "better workers" and lend something to the house system, Powers added.

Only dining halls at the College, SPH and the Business School are still Harvard-run.

Robert H. Scott, vice-president for administration, attributed the subcontracting of most of the graduate dining halls to the "expansion over the past 10 years of the number of good, high-quality catering firms."

Contracting out is a very important issue, because we have to be careful to do the right thing, the most economical and the most fair," said Scott.

"I guess there's a question in my mind whether a nonprofit institution can ever run these programs efficiently," Powers said.

"We're an educational and research institute. We're not a food services institute." Powers added "Universities should, in the future, more closely examine what they can do well and what others can do for them."

Even when the University does not contract out services, it can improve its efficiency by renegotiating with workers while the threat hangs overhead.

In the mid-70s, the University was concerned that the cost of in-house custodial work was much higher than the cost of outside contractors. Powers said, adding that Harvard determined that it was paying custodial workers several dollars more per hour than most other firms.

"We negotiated with the union for a part-time classification (for its workers), "Powers said, explaining since part-time employees get fewer benefits than full-time employees, the University saved money. "As a result, there was no increase in custodial contracting, we gave them job security and we had a substantial decrease in costs," Powers said.