The University is considering selling its vending services to Pepsico Inc., which may cost between 20 and 25 University employees their jobs.

Discussions for the deal with Pepsi began several months ago, but nothing has been finalized yet, according to William McKinnon, associate vice president for business and operations.

With the sale, Pepsi would own vending services and take over vending operations, McKinnon said.

Although he wouldn't comment on how much money is involved, McKinnon stressed that only some, if any, of the money may be used to fund the Academic/Athletic Convocation and Events Center.

But one employee, who asked that he not be identified, disagreed.

"(Barry) Scerbo told us that whatever monies were realized from the sale of vending would go toward (the) Convocation Center," the source said. Scerbo is the director of Food Services for the Office of Housing and Food Service Operations.

In considering the agreement, the University is looking for a more efficient and effective way of running vending services, McKinnon said.

"You're looking at it being a better business decision," he said.

McKinnon refused to comment on whether the 20 to 25 University employees involved would lose their jobs, saying only that employees from Pepsi or an agency they've contracted could take over general operations of vending services.

"Until we actually look at the number involved and look at the issues, it's hard to determine what's actually going to happen," McKinnon said.

The deal will probably be finalized during the next couple of months, he added.

Rumors of a possible sale began Dec. 13, according to the source. At a Dec. 18 meeting, workers learned from management that discussions with Pepsi were underway, but that nothing had been finalized, the source added.

During another meeting Jan. 6, workers learned that no new information was available, the source said.

Even though workers haven't heard definite answers, Pepsi officials have visited and surveyed equipment, according to Trent Ritchey, parts manager for Pepsico in Altoona.

Rumors about a possible sale started when the University approached Pepsi about money for the new convocation center, the source said. In exchange for the donation, the University would allegedly agree to sell exclusively Pepsi products for a predetermined number of years, he said.

But then Pepsi began considering buying the vending services, the source added.

And some employees are worried about their job security and question the University's motives.

"I can understand Pepsi wanting to make a buck, but I'll be damned if Penn State should sell a money-making institution just to build a damned hotel on a hill," the source said.

The University earns an average of $3,000 a day from vending, the source estimates.

"This is not just a nickel and dime outfit. We bring a hell of a lot of money," the source said.

But according to Tom Gibson, assistant vice president for the Office of Housing and Food Service Operations, the University has a history of helping relocated employees find work within the University.

Gibson added that management provides employees with weekly updates on the situation.

A grievance has been filed and the University officials refuted the charges, according to the source.