Initial threat to Hackney schools contract

Initial Catering Services is threatening this week to pull out of its contract to provide hot school meals in the London Borough of Hackney. It is understood that the contract is losing money.

The contract to provide meals at 80 schools and nine nurseries has another three years to run. Hackney council wants to issue an injunction to prevent Initial pulling out.

A spokesman for the Transport & General Workers' Union said the council was unwilling to take the service in-house and was proposing a packed lunch service only. About 400 staff could lose their jobs.

The union wanted the injunction to buy time in which to negotiate a way forward with the council and the children's parents.

Nobody at Initial was available for comment.