July 25, 2017 9:04 AM ET

Food Products

Company Overview of Apio, Inc.

Company Overview

Apio, Inc. engages in processing, packaging, shipping, and distributing fresh-cut specialty packaged vegetables and fruits to foodservice channels, retail grocery stores, club stores, and wholesale stores in the United States, Mexico, and Canada. It provides fresh-cut green beans, membranes, polymer produce storage bags, and broccoli. The company was founded in 1979 and is headquartered in Guadalupe, California. Apio, Inc. operates as a subsidiary of Landec Corp.

4575 West Main Street

Guadalupe, CA 93434

United States

Founded in 1979

Phone:

805-343-2835

Fax:

805-343-3033

Key Executives for Apio, Inc.

Chief Executive Officer
Age: 51
Director of Marketing
Vice President of Marketing
Compensation as of Fiscal Year 2017.

Apio, Inc. Key Developments

Apio, Inc. Agrees to Settle Labor Related Legal Actions

Landec Corporation announced that Apio, Inc. has reached an agreement in principle to settle a variety of claims made against the company and its labor contractor. Apio has been the target of a union organizing campaign which has included two unsuccessful attempts to unionize Apio’s Guadalupe, California processing plant. The campaign has involved a union and over 100 former and current employees of Pacific Harvest, Inc. and Rancho Harvest, Inc., Apio’s labor contractors, bringing dozens of legal actions before various state and federal agencies, the California Superior Court, and initiating over 100 individual arbitrations against Apio and Pacific Harvest. The Actions consist of three main types of claims: (1) Unfair Labor Practice claims before the NLRB, (2) discrimination/wrongful termination claims before state and federal agencies and in individual arbitrations, and (3) wage and hour claims as part of two Private Attorney General Act (PAGA) cases in state court and in over 100 individual arbitrations. A settlement of the ULP claims among the NLRB, the Union, Apio, and Pacific Harvest that were pending before the NLRB was approved on December 27, 2016 for $310,000. Apio was responsible for half or this settlement or $155,000. Concerning the discrimination/wrongful termination claims and the wage and hour claims, in order to avoid the time and expense of further litigation and without admission of liability, the parties have agreed in principle to a class action settlement which covers all non-exempt employees of Pacific Harvest working at Apio’s Guadalupe, California facility. This settlement remains subject to all of the plaintiffs executing the settlement agreement, and the settlement agreement being approved by the Santa Barbara County Superior Court. Under the Settlement Agreement, the plaintiffs will be paid in three installments: $2.4 million in April 2017, $1.8 million in November 2017 and $1.8 million in July 2018. Apio is responsible for half of these payments with Pacific Harvest responsible for the other half. As a result of the class action settlement, during the third quarter ended February 26, 2017, Apio will be recording an additional legal settlement charge of $2.1 million, or $0.05 per share after tax, for its one-half of the settlement obligation, bringing the total legal settlement charge for fiscal year 2017 to $2.6 million and the accrual to $3.0 million as of February 26, 2017. During the first nine months of fiscal 2017, Apio had incurred $1.7 million of legal defense expenses related to the Actions, bringing the total expenses associated with these Actions during fiscal 2017 to $4.3 million, or $0.10 per share after taxes. Importantly, by settling on a class-wide basis, the number of individuals who will be releasing their claims is significantly higher and the length of time covered by the settlement increased from one year to four years. As a result, this settlement allows Apio to avoid millions of dollars of legal fees to arbitrate and individually try all of these matters over the next several years.

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