The Compass Group was likely to review the service, should the plan proceed and the company take over kitchens in Dunedin, Invercargill, and Queenstown, health board chief executive Carole Heatly said yesterday.
When it announced last week it was going ahead with privatisation, the board said ''all existing staff'' could transfer to Compass, keeping their existing terms and conditions.
In response to further questions, the board said Compass would probably review the service if it takes over, after which job losses could not be ruled out.
''At that time, any affected staff would be able to look at redeployment opportunities within Compass before taking redundancy.''
The workers would transfer to the new company under a protection mechanism for vulnerable workers.
The board said the move would save $870,000 in the first year.
Asked for a breakdown of the savings, it referred the query to Health Benefits Ltd in Auckland.
The board has decided in principle to privatise the kitchens, but said it would sign the contract only if the benefits stacked up.
About 100 staff in the South would be affected.
The privatisation is part of a nationwide push for boards to join the Compass service, and yesterday three Auckland boards said they were joining.
Service and Food Workers Union industrial leader Jill Ovens said about one in five hospital food jobs were likely to go in Auckland, and workers were not being told the full story.
She did not know how many jobs were likely to go at the Southern DHB.
''I said to them at the HBL briefing: 'In the immortal words of our Labour leader - cut the crap','' Ms Ovens said.
Unionised food workers went on strike yesterday at Auckland City Hospital in protest against the contracting-out decision, which they say will cost jobs and be bad for patients.
The Auckland, Counties Manukau and Waitemata District Health Boards announced they had agreed to a proposal to increase the involvement of Compass from next December in food preparation and delivery at public hospitals and clinics.
Auckland DHB said Compass already provided 44% of patient meals in New Zealand, including those served at Waitemata and Counties DHBs.
Of the three DHBs, Auckland, whose food services are provided in-house, will impose the most changes.
Its chief executive, Ailsa Claire, said there would be no kitchen closures and all DHB food service staff would be offered the opportunity to transfer their employment to Compass on their existing terms and conditions.
Ms Claire's media liaison officer said no jobs were being lost.
When asked how money could be saved if no jobs were being lost, he said, ''I don't think that detail is something we can release yet''.
