Facing a Racketeer Influenced and Corrupt Organizations Act (RICO) lawsuit, and apparently figuring they were going to lose and lose big, the Service Employees International Union (SEIU) agreed to end its massive corporate attack against Sodexo.
In exchange for the SEIU ending its corporate campaign, Sodexo agreed to dismiss its RICO suit against the SEIU.
Meanwhile, Sodexo employees maintain their right to secret-ballot election–something the SEIU has fought to take away with its attacks on the Company.
Below are the individual press releases issued by both Sodexo and the SEIU, respectively.
Sodexo’s press release:
SEIU Ends Campaign Against Sodexo Following Settlement Agreement
Agreement Includes Dismissal of Lawsuit
GAITHERSBURG, Md., Sept. 15, 2011 /PRNewswire-USNewswire/ — Sodexo USA and Service Employees International Union (SEIU) today announced a settlement agreement under which SEIU will end a public campaign against Sodexo that has been ongoing for nearly two years. The agreement resolves a civil lawsuit filed by Sodexo in March 2011 in response to the campaign.
“With this settlement, we can begin the process of resuming a constructive relationship with the SEIU that is consistent with Sodexo’s strong record of respecting our employees’ rights under national labor laws with more than 30 other unions in the U.S.,” said Robert Stern, Sodexo USA’s general counsel.
Under the settlement, Sodexo and SEIU have affirmed their mutual commitment to the rights of Sodexo’s employees to make free and informed choices about unionization. The specific terms of the settlement agreement are confidential.
“With today’s resolution in place, we will continue to serve our clients and customers while providing opportunities for growth and advancement for our employees,” added Stern.
The lawsuit, Sodexo v. SEIU, et. al, was filed in the U.S. District Court of the Eastern District of Virginia and will be dismissed by stipulation of the parties.
Below is the statement of the SEIU:
SEIU and Sodexo Reach Amicable Settlement
Agreement affirms mutual commitment to the rights of Sodexo employees
WASHINGTON, Sept. 15, 2011 /PRNewswire-USNewswire/ — The 2.1 million member Service Employees International Union (SEIU) and Sodexo, the world’s 21st largest employer, have reached an amicable settlement of their differences. Under this settlement, SEIU and Sodexo have affirmed their mutual commitment to the rights of Sodexo employees to make free and informed choices about unionization. The specific terms of the settlement are confidential.
As a result, the parties have also withdrawn their respective charges and lawsuits and SEIU has terminated its public campaign focused on Sodexo.
“With today’s resolution in place, we will continue to serve our members and future members in the foodservice, cleaning, and security industries,” said Tom Woodruff, SEIU Executive VP.
SOURCE Service Employees International Union
“I bring reason to your ears, and, in language as plain as ABC, hold up truth to your eyes.” Thomas Paine, December 23, 1776
Cross-posted on LaborUnionReport.com