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

1. Sysco urges Teamsters to negotiate, avoiding harmful strikes. 2. Sysco offers significant wage increases: 8.5% for warehouse, over 9% for delivery. 3. Total wage increase projected at 20% over contract lifespan. 4. Sysco's negotiations aim to balance employee benefits and business needs. 5. Teamsters' actions may hurt local businesses and vulnerable communities.

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FAQ

Why Bullish?

The wage increases can enhance employee morale and productivity, potentially improving financial performance. Similar past negotiations that resulted in higher wages often led to increased sales and profitability.

How important is it?

Employee negotiations are crucial to Sysco's operations and can influence its stock performance. Collective bargaining outcomes often directly impact investor sentiment and financials.

Why Short Term?

The upcoming contract expiration may result in immediate financial implications. Historical strikes have sometimes led to short-term supply chain disruptions.

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SYYIBT
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 January 13, 2025 13:31 ET  | Source: Sysco Corporation 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 ContactMedia ContactKevin KimCassandra MauelKevin.Kim@sysco.comCassandra.Mauel@sysco.com281-584-1219281-584-1390 https://sysco.com/

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