Thursday, March 18th 2010

By jeff green

After undergoing a $400,000 face-lift, the McMaster Student Union (MSU) owned and operated campus bar, 1280, continues to sink. Sunday’s Student Representative Assembly (SRA) meeting highlighted that the bar is expected to lose $242,000 this year, bringing the total losses since opening in 2002 to nearly $1.5 million. This announcement came on the heels of a memo that was sent out to MSU full-time staff, outlining that the management team of 1280, “will be leaving the organization to pursue opportunities outside the MSU.”

The staff changes are a new move for the MSU, considering that manager Ismael Viegas was promoted following last year’s loss of $356,089.

Viegas declined to comment on the issue.

Leaving with Viegas will be head cook Don Jackson, and service manager LeRoy Douglas. While Douglas will run out the end of his current contract, both Viegas and Jackson are expected to receive settlement packages, although no details were provided by the MSU.

Since opening in 2002, 1280’s losses are estimated to total $1.5 million. For the past two years, the vice presidents (finance) of the MSU has maintained that the bar can make a profit.

Sources inside the MSU speculate that this was a move to save business manager John McGowan, who is ultimately responsible for the business operations of the union. The MSU has been under fire this year with poor management practices resulting in significant cost to the union. A recent government audit revealed that the MSU failed to pay provincial sales taxes on the health plan. The cost of the PST errors is presently over $503,000.

The MSU is appealing the PST audit, and vice president (finance) Andrew Caterine said that they will be getting “$15,000 to $20,000 back.” Those numbers are not final. MSU Comptroller Maggie Gallagher clarified that they are expecting the final PST statements to arrive in mid-April.

Speaking to 1280’s losses this year, Caterine highlighted that December and January have been extremely bad months for the bar, and that the average loss per month at 1280 is around $10,000. Currently, the bar has lost $150,000. Caterine expects the loss to be under $200,000 – contrary to the $242,000 figure reported at SRA this past Sunday by the financial commissioner Daniel Boccaccio.

“We let the management staff go,” confirmed MSU president Vishal Tiwari about the 1280 team, “they didn’t leave on their own accord… we appreciate all the help and commitment we’ve received from them to the bar, but we’re looking for something else, and unfortunately we had to let them go.”

Caterine expressed the difficulties of running a bar on campus, where the majority of residence students are under the drinking age. “it’s very difficult to run the student service aspect versus the running a business aspect. It’s been a unique experience.”

McGown continues to have the full support of the Board of Directors. “John McGown, throughout his time here, has taken on more work than we should expect from a general manager… our faith in John McGowan has not been waivered at all,” said Caterine of the MSU current business manager. Tiwari echoed those sentiments.

Caterine pointed to John’s extensive knowledge of the organization as a whole, to his work to maintain birth control coverage in the MSU health plan, and to his work to keep a revenue stream from GO Transit the highest in the country.

Tags: 1.5 million, 1280, MSU, PST, Quarters