Teamsters Refuse to Allow Sysco Workers to Vote on Industry-Leading Contracts

Rhea-AI Summary

Sysco Corporation (NYSE:SYY) faces a work stoppage due to an impasse with the International Brotherhood of Teamsters in Boston and Syracuse. Despite offering substantial wage increases and improved benefits, negotiations have stalled as union leaders reject the proposals without allowing member votes. Sysco argues that the union's push for a pension plan is detrimental to associates. The impasse threatens food supply chains and community services, as Sysco continues to prioritize negotiations to resolve the situation.

Positive

• Substantial wage increases: 32% over contract duration and 11% in Year 1 for Sysco Boston; 9% increase in Year 1 for drivers at Sysco Syracuse.
• Enhanced healthcare contribution rate to 80% from 75%, indicating increased investment in employee benefits.
• Strong company-sponsored 401(k) plan remains available, offering multiple investment options and guaranteed contributions.

Negative

• Ongoing work stoppage disrupting operations and threatening food supply chains.
• Teamsters' leadership rejecting offers without member voting, potentially prolonging negotiations.
• Threats of extended picket lines impacting other Sysco operations and small businesses.

HOUSTON, Oct. 06, 2022 (GLOBE NEWSWIRE) -- Sysco Corporation (NYSE:SYY) announced it had reached an impasse with the International Brotherhood of Teamsters, Local 653 in Boston and Local 317 in Syracuse.

Despite best efforts to bring the current work stoppage to an end, including offering industry leading wages, the Teamsters’ leadership has effectively rejected the companies’ offers and denied their members the right to vote on the proposed offer.

The parties have not been able to reach an agreement because Local 653 demanded Sysco Boston associates participate in the critically underfunded union-sponsored pension plan, a move that Sysco Boston believes is not good for its associates.

Sysco Boston associates already participate in a strong company-sponsored 401(k) retirement plan that allows them to choose from many investment options and includes guaranteed annual contributions and a match.

In addition, the Teamsters’ leadership is now threatening to unlawfully extend picket lines to other Sysco companies, acting on a Teamsters-driven national agenda that demonstrates a complete lack of care or concern for the impact these actions will have on our associates, their families, our customers, and the communities that depend on our customers for food.

The Teamsters’ agenda is aimed at gaining attention and promoting the interests of the union leadership. It will disrupt thousands of small businesses, hospitals may struggle to get their orders, children who rely on schools for their meals may not get them and the nation's supply chain will be further stressed.

Each Sysco company is committed to serving as many customers as possible. We are proud of the men and women who share this commitment by crossing the Teamsters’ picket lines to keep our trucks rolling and our communities fed.

Our top priority remains getting back to the negotiating table and reaching an agreement so associates can get back to their jobs and our customers can return to normal operations.

Sysco Boston offered:

• Industry-leading pay, including substantial wage increases of 32% over the life of the contract and 11% in Year 1.
• Drivers continue in the union-sponsored healthcare plan; Sysco Boston offered to increase the contribution rate to 80% from 75%, increasing the company’s financial investment by 20%.
• Sysco Boston associates to remain in the strong company-sponsored 401(k) retirement plan which includes multiple investment options, automatic annual contributions and a match.
  

Sysco Syracuse offered:

• Industry leading wages
  • Driver wages increase 9% in year 1 and 24% over the life of the contract
  • Warehouse wages increase 8% in year 1 and 22% over the life of the contract 

About Sysco
Sysco is the global leader in selling, marketing and distributing food products to restaurants, healthcare and educational facilities, lodging establishments and other customers who prepare meals away from home. Its family of products also includes equipment and supplies for the foodservice and hospitality industries. With more than 58,000 associates, the company operates 343 distribution facilities worldwide and serves more than 650,000 customer locations. For fiscal 2021 that ended July 3, 2021, the company generated sales of more than $51 billion. Information about our CSR program, including Sysco’s 2021 Corporate Social Responsibility Report, can be found at www.sysco.com/csr2021report.

For more information, visit www.sysco.com or connect with Sysco on Facebook at www.facebook.com/SyscoFoods. For important news and information regarding Sysco, visit the Investor Relations section of the company’s Internet home page at investors.sysco.com, which Sysco plans to use as a primary channel for publishing key information to its investors, some of which may contain material and previously non-public information. In addition, investors should continue to review our news releases and filings with the SEC. It is possible that the information we disclose through any of these channels of distribution could be deemed to be material information. 

FAQ

What is the current situation with Sysco and the Teamsters union?

Sysco is experiencing a work stoppage due to failed negotiations with the Teamsters union, which rejected compensation offers despite the company's substantial wage increases.

What wage increases has Sysco proposed to the Teamsters union?

Sysco proposed a 32% wage increase over the contract duration and an 11% increase in Year 1 for its Boston associates.

How is Sysco addressing employee benefits during the union negotiations?

Sysco is increasing its healthcare contribution from 75% to 80% and offers a solid 401(k) retirement plan with guaranteed contributions.

What impact could the union strike have on Sysco's operations?

The strike could disrupt food supply chains, affecting hospitals, schools, and small businesses that rely on Sysco for deliveries.