Sysco Offers Houston Colleagues Unprecedented Wage Increases, Improved Benefits and More Time Off, Teamsters’ Strike Call Harms Our Colleagues

Rhea-AI Summary

Sysco (NYSE:SYY) is facing potential strikes as negotiations continue with the International Brotherhood of Teamsters (IBT) ahead of the January 17 contract expiration. The company has offered significant compensation packages including first-year wage increases of 8.5% for warehouse workers and over 9% for delivery partners, with total increases of 20% over the contract duration.

The proposed package includes additional vacation time, double time for work exceeding 60 hours, reduced healthcare costs, and addresses nearly all union demands. Sysco claims the Teamsters' strike threats are part of a coordinated national strategy and their allegations are false and misleading. The company emphasizes that strikes would impact essential services to hospitals, nursing homes, and schools.

Positive

• Offering 8.5% wage increase for warehouse workers in Year 1
• Proposing 9% wage increase for delivery partners in Year 1
• Total wage increases of 20% over contract duration
• Improved benefits package including reduced healthcare costs
• Additional vacation time and double time for overtime work

Negative

• Potential multi-site strikes threatening operations
• Labor dispute risks disrupting service to critical facilities
• Contract deadline pressure with January 17 expiration

Teamsters have not been serious about reaching an agreement, Sysco calls on union to reach an agreement to avoid strikes that harm colleagues and the community

HOUSTON, Jan. 13, 2025 (GLOBE NEWSWIRE) -- Today, Sysco Corporation (NYSE:SYY), the leading global foodservice distribution company, called on the International Brotherhood of Teamsters (IBT) to stop threatening strikes at its companies in multiple states and to start serious negotiations so Houston colleagues can enjoy the unprecedented wage increases we have offered.

Sysco has been negotiating in good faith for several months with the goal of reaching an agreement by contract expiration on January 17. Sysco is committed to reaching an agreement that rewards our Houston colleagues with generous wage increases and improved benefits while balancing the company’s business needs. The Teamsters’ allegations are false and misleading. Their actions harm our colleagues, their families, and our community partners, including hospitals, nursing homes, and schools.

Sysco’s offer includes wage increases in Year 1 of 8.5% for warehouse colleagues and over 9% for delivery partners. Over the life of the contract, colleagues will see wages increase by 20%. In addition, this offer would award them additional vacation time, double time for over 60 hours of work, lower health care costs and receive nearly all other demands made by the union.

“Sysco cares about our colleagues, our customers and our community and our goal is to offer colleagues competitive wages, a supportive environment, and jobs that provide room for growth and development,” said Ron Phillips, Sysco’s executive vice president and chief human resources officer.

“This threat to engage in a multi-site strike is part of a coordinated national strategy by the IBT aimed at gaining attention and promoting the interest of the union rather than benefiting its local members,” Phillips added. “Rather than negotiate responsibly to benefit our Sysco colleagues, the Teamsters have chosen to attack our business, prevent our colleagues from enjoying immediate, substantial wage increases, and harm our communities.”

Sysco has offered to pay a larger percentage of health benefits, decreasing coverage costs for colleagues while still providing them a generous package with multiple options.

“Sysco is committed to an outcome that positions our colleagues, company, and customers for long-term success,” Phillips continued. “The Teamsters’ actions harm our colleagues and their families, local businesses and the most vulnerable in our community who depend on Sysco to receive meals. We call on the Teamsters to negotiate seriously and represent their members.”

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 76,000 colleagues, the company operates 340 distribution facilities worldwide and serves approximately 730,000 customer locations. For fiscal year 2024 that ended June 29, 2024, the company generated sales of more than $78 billion. Information about our Sustainability program, including Sysco’s 2024 Sustainability Report and 2024 Diversity, Equity & Inclusion Report, can be found at www.sysco.com.
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.

For more information contact:
Investor Contact	Media Contact
Kevin Kim	Cassandra Mauel
Kevin.Kim@sysco.com	Cassandra.Mauel@sysco.com
281-584-1219	281-584-1390

FAQ

What wage increases is SYY offering Houston employees in 2025?

Sysco is offering 8.5% wage increases for warehouse workers and over 9% for delivery partners in the first year, with total increases of 20% over the contract duration.

When does Sysco's (SYY) current Teamsters contract expire?

Sysco's current contract with the Teamsters expires on January 17, 2025.

What additional benefits is SYY offering in the new contract?

Sysco is offering additional vacation time, double time for work over 60 hours, lower healthcare costs, and addressing nearly all union demands.

How would a potential Teamsters strike affect SYY operations?

A strike would impact Sysco's ability to serve critical facilities including hospitals, nursing homes, and schools, potentially disrupting food service distribution.