Workers From Prominent Company Strike Due To Contract Dispute

On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Contract Disputes on Wednesday, August 9, 2017.

Forbes lists Aramark Uniform Services as the one of the largest privately owned companies in the nation. The company boasted $13 billion in revenue a handful of years ago. With over a quarter million employees, it was bound to face a significant contract dispute sooner or later. California employers, particularly those currently dealing with insurance premium issues, may want to keep tabs on the current situation.

The contentious situation involves about 75 members from United Electrical Workers Local 1121. They are responsible for laundering uniforms for many different businesses, such as hotels and restaurants. However, the workers recently walked off the job due to the ongoing contract dispute.

The employees are asking for higher wages to cover the potential cost of possible insurance coverage premium increases. Interestingly, the Aramark facility employs approximately 110 workers at this particular plant, and the number of employees who walked off the job was significantly lower, meaning there was not a unanimous decision to strike. A woman who says she has worked at the company for nearly 30 years reported that this is the first time a work strike has occurred to her knowledge.

As most California employers know, when workers present a slew of new requests during contract negotiations, it's not always possible to accommodate every single one. Companies must consider overall cost effectiveness and other issues when determining how best to provide employees with sufficient pay and benefits packages. Situations like this one can substantially slow down production and profit. This is why it's typically best to rely on experienced representation in the hope of achieving swift and favorable solutions to a contract dispute.


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