Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASDAQ 4,095.52 9.29 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,512.38 -3.89 -0.03%
TOPIX 1,171.40 -1.97 -0.17%
HANG SENG 22,760.24 64.23 0.28%

Teamsters Urge Dialogue, Caution Around Sysco/US Foods Deal



         Teamsters Urge Dialogue, Caution Around Sysco/US Foods Deal

PR Newswire

WASHINGTON, Dec. 16, 2013

Union Calls on Companies to Address Labor Relations and Customer Concerns as
Sysco's $3.5 Billion Acquisition of US Foods Unfolds

WASHINGTON, Dec. 16, 2013 /PRNewswire-USNewswire/ -- Sysco's acquisition of US
Foods announced last week raises serious concerns for workers, stakeholders
and customers as the combined company becomes the country's largest
institutional/restaurant food service provider.

(Logo: http://photos.prnewswire.com/prnh/20100127/IBTLOGO)

James P. Hoffa, General President of the International Brotherhood of
Teamsters (IBT), called on Sysco and US Foods to begin a national dialogue
immediately with stakeholders to ensure a successful transaction.

"Sysco and US Foods should sit down now with stakeholders – including labor –
to build a company that supports workers, protects customers and receives the
government's blessing," Hoffa said. "Taking the high road now, by choosing a
strategic partnership with its workers and their representatives, could
improve the company's competitive performance."

The Teamsters are the largest union at each company with more than 7,000
members at Sysco and more than 4,000 at US Foods. Teamsters hold nearly 100
contracts across both companies, many of which will be expiring and
renegotiated over the next year.

The transaction, expected to conclude in late 2014, already faces scrutiny by
the Federal Trade Commission over potential anti-trust concerns; a combined
company, according to Sysco executives, is expected to control 25 percent of
the food service market. Customers this week expressed frustration about
reduced competition among providers – nervous about possible increased costs
and quality of service.

"Teamsters, who are the face of Sysco and US Foods to their customers, are the
foundation of these companies' success," said Steve Vairma, Teamster Warehouse
Division Director and International Vice President. "These men and women will
be critical in building Sysco's future, in maintaining and growing its
customer base.  Management should work with labor now to ensure a seamless
transition."

Dozens of metropolitan areas are currently home to both Sysco and US Foods,
raising questions for communities about the effects of consolidation –and an
anticipated $600 million in savings over three to four years – on the
workforce and employment in their areas.

"Too often transactions like this are crafted to benefit the few, the 1
percent, without regard to workers or customers. Making good choices now by
engaging major stakeholders will obviously pay big dividends as this
transaction moves ahead," Hoffa said. "We are prepared for a dialogue about
ways to protect working families at these companies. And we're prepared to
stand up for them as this deal unfolds."

Founded in 1903, the International Brotherhood of Teamsters represents 1.4
million hardworking men and women throughout the United States, Canada and
Puerto Rico. Follow us on Twitter @Teamsters and "Like" us on Facebook at
www.facebook.com/teamsters.

SOURCE International Brotherhood of Teamsters

Website: http://www.teamster.org
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement