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World's Largest Catering Firm Locks Out BC Workers
Most are visible minority women paid $12 hourly. Compass Group profited $1.5 billion last year.
Tessie Zarate and Canh Huynh, locked out of their jobs preparing food for long-term care facilities. Photo by Tom Sandborn.
"We just want a fair contract," said Tessie Zarate. "We do a lot of heavy work and $12 an hour is not enough pay." Zarate, a single mother of four from the Philippines, is one of over 200 long term care facility workers in B.C., locked out by their highly profitable multinational employer, the Compass Group, in late September.
Since then, the workers not required to stay on duty by an essential service designation from the Labour Relations Board are walking picket lines outside their workplaces on chill, rainy October sidewalks.
On two recent visits to one of those picket lines, the Tyee met women workers who hailed from the Philippines, India and Vietnam, reflecting the largely female and visible minority character of Compass's low wage workforce in its contracted food services for health care facilities.
Two of the locked out groups are on Vancouver Island, and the remaining five are in the Lower Mainland. Locally, the Vancouver District Labour Council has been organizing picket line visits by supportive community members to bolster the women in their fight, visits that have included a round of picket songs from the Solidarity Notes Labour Choir.
"When workers are in need," labour council president Joey Hartman said, "we want to be there for them."
'We deserve more than a five cent raise'
The Compass Group, often described as the world's largest contract food services company, locked out over 200 workers at seven B.C. long term care homes on Sept. 29. The workers, mainly visible minority women, most of whom are paid just over $12 an hour by the multinational company, have been working without a contract since December 2010, when the collective agreement negotiated for them by Steelworkers local 2009 ran out. The frustrated workers conducted small strike actions at the long-term care facilities over several days in September. The employer responded by locking out its Steelworker employees.
"Lockout" is a potentially misleading term in this case, as over 85 per cent of the workers have been designated as essential service providers by the BC Labour Relations Board and are still on the job during the lockout, Steelworkers staff representative Brian Harder told the Tyee in a recent phone interview. The remaining workers are on the picket line, hoping that their sidewalk witness and solidarity pickets organized in Vancouver by the local labour council will help them persuade the employer to table a better contract offer.
Picketer Canh Huynh has worked for Compass at various locations for over 13 years. Compass, which employs Huynh and her co-workers to provide services to the Arbutus Care Centre, does not operate the care home itself. At Arbutus Care, as around the world, Compass provides contracted food services to the facility's owners, in this case the Revera company. Huynh has been a cook at Arbutus for four years, and thus makes a slightly better salary than many of her co-workers. Nevertheless, as a union shop steward proudly wearing a button that declares "I support my bargaining committee," Huynh said she is determined to get a settlement that will provide better wages for all her co-workers.
"Lots of us have to come in early and work through our breaks to get our work done," picketer Zarate chimed in, "and get no extra pay for that. We are all working very hard and we deserve more than a raise of five cents an hour. That's just an insult."
Zarate said that she, like many Compass workers, had been kept on casual status during her time with the company, meaning she was ineligible for the benefits paid to full time regular employees.
The Steelworkers' Harder told the Tyee yesterday that when talks first opened up with Compass, the company proposed a new contract with no raise at all, but later moves from the firm suggested it would give workers a raise of a nickel an hour, the offer that Zarate saw as an insult. Harder said that the company has not conducted any formal negotiations since locking out its workers. Told that Compass had claimed in an email to the Tyee that it had met with the Steelworkers 10 times over this dispute, Harder emphasized that none of those meetings had occurred over the past month's lock out.
"The key issue here is fair wages for these workers," Harder said. "No one is looking to become a millionaire doing this work, but Compass is paying less than other contractors in the sector. The company negotiators ought to come back to the table with a mandate to make a fair deal."
"It is utterly disgusting that this global giant is targeting its most vulnerable workers," retired teacher and Solidarity Notes Choir member Bill Bargeman told the Tyee. "The choir responded to a request from the labour council to make a singing visit, and we were happy to do so. We are glad to be part of a larger support for these workers, as these brave, spirited women face off against a big company in a classic David and Goliath story."
Compass grants no interview
The Tyee made repeated but unsuccessful efforts to secure an interview with local and national Compass representatives to discuss the lockouts. The company's national headquarters sent an email response signed "Sincerely, Corporate Communications," that read in part:
"We have been negotiating with the United Steelworkers Union representing employees at the all locations since December 2010. We have met on more than 10 separate occasions. We respect the right of our employees to be represented by a union. Unfortunately, we were not successful in negotiating a mutually agreeable contract with the union and they decided to exercise their legal right to strike. We do not know how long the labour disruption will continue, however, we look forward to a speedy resolution."
In a follow-up email exchange, the same anonymous corporate communicator declined to respond to questions about outstanding issues as yet unresolved in the negotiations or to questions about why, given the company's healthy profits last year, it seems to be stonewalling its B.C. employees on wage increases.
"In response to the additional information you ask about, we do not bargain in the public domain," the media spokesperson wrote.
Yesterday afternoon, Compass Canada's vice president of human relations, Brenda Brown, left a voicemail for the Tyee responding to earlier questions about the lockout. She reiterated that the company was unwilling to negotiate in public. Finally, in response to a Tyee question about how a company making a billion dollars a year in profit justifies paying $12 an hour to its workers in B.C., she replied:
"Each of our contracts with any of the accounts are individual commercial contracts with that particular facility, each with its own individual [profit and loss] statement. The global profits don't come into play when you talk about that particular client."
Compass, a global giant
While Compass's negotiating tactics with its workers may be closely held corporate secrets, some information on the company itself is available. Compass was listed in 2010 as one of the Fortune 500 top global companies, ranked as number 424 in that elite listing. It is listed as number nine in an online article about the globe's largest employers last year, ranking just behind the Agricultural Bank of China and just ahead of IBM.
In 2010, the company brought in nearly $21 billion in revenue, a bit lower than 2009 but still generating profit of over a billion English pounds (in late October 2011, exchange rates would come to over a billion and a half in Canadian dollars). Around the world, Compass's 428,000 employees served over four billion meals last year. The Canadian division of Compass, which in 2010 employed over 23,000 "associates," generated $1.4 billion in revenue.
According to its website, the global Compass Group has a policy on its relationships with its employees, which it describes as:
"As a service company, our people are key to the success of our business. We respect and value the individuality and diversity that every employee brings to the business and seek to create a positive, open, working environment wherever we operate."
[See more Tyee labour and industry reporting here.] ![]()




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x4estworker
30 weeks ago
David vs. Goliath
A clear case of the 1%, Compass, exploiting the 99%.
I wonder how many millions plus bonuses the president and other top executives of Compass make annually?
zalm
30 weeks ago
The other place to put pressure
...is on the long-term care facilities themselves. Publicize the names of the facilities and families will soon be asking questions. Hell, I'll soon be asking questions as I get round to some of them on a semi-regular basis.
Most care organizations are pretty responsible, even with their contractors. Unfortunatel, some are not. Some of them got forced into contracting out food and housekeeping when the Fiberals came to town offering money for those who decided to contract out, even if there were no savings. I'm aware of one facility that found no savings in the contracting out, was offered $70,000 in "budget ease" to do so, and turned it down.
No, as long as the facilities get a free ride from their residents and families, they'll continue to pay no attention to how abysmally their contract workers are treated.
Fiat lux
30 weeks ago
When a company cuts, or pays,
When a company cuts, or pays, lousy wages, while increasing prices to make higher profits, that's not "earnings", but "theft".
So, where are our universities, legal eagles and politicians to point out this simple fact ?
Ed Deak.
baergy
30 weeks ago
What is wrong with leaving ?
If one is unhappy with one's working situation and there seems to be no adjustment in sight, just quit what you're doing !! Get a job with the firms that are paying what your position is REALLY worth !! No one is stopping you from going to the highest bidder for your services !! Anybody STUPID enough to stay at a job where they are not appreciated, let along LIKED then they are the fools, not the down-trodden.
MacKenna
30 weeks ago
Gordon Campbell's legacy lives and breathes in this lockout
Gordon Campbell, libertarian courtier to the 1%, ripped up health care union contracts, fired all the non-medical health industry workers and contracted out services to the lowest bidder multi-national corporations. These companies put profits ahead of health and welfare (as we've seen in the appalling cleaning and security standards in hospitals) and pay bottom of the barrel wages to workers who are both ill-trained and lack job security. Frequently, BC's private health contractors fire all their workers in an effort to get rid of the unions. They do this in the long term care facilities whose patients are elderly people. These elderly people who pay dearly to live in these facilities often get attached to their caregivers and suddenly find them yanked away, to be replaced with new poorly paid and ill treated staff. I cannot wait to vote out the Gordon Campbell Party, which despite it's new bobble head in Christy Clark is the same old mean machine it has always been.
zalm
30 weeks ago
Ed
It's not "theft" any more than it's a "sin".
Fiat lux
30 weeks ago
Of course, what Campbell has
Of course, what Campbell has been and Harper are doing is taught in our universities as "economic efficiency", meaning the lowest wages and the highest profits.
Ed Deak.
zalm
30 weeks ago
baergy
The economy is structurally managed by governments and private corporations to produce a certain amount of unemployment as a natural function of creating the elements of economic growth. This well-known principle has been known since the days of Ricardo two hundred years ago. You can't get rid of it. That means government and business are externalizing unemployment to the people who they supposedly serve.
If you think that's a fair way of doing business, go live in another world. This one's for thinking people with a modicum of compassion.
Fiat lux
30 weeks ago
zalm....theft is a criminal
zalm....theft is a criminal offence and these actions should be treated as such, because that's what they are.
Cutting wages while stuffing their own pockets is a clear case of theft.
Ed Deak.
Kreditanstalt
30 weeks ago
Maybe that's why its profitable!
There is so much spin and economic nonsense flying here I feel compelled to take the other side....
"Compass is paying less than other contractors in the sector."
Then you are free to go and work for them.
Compass, like any other company, belongs to the shareholders, not the hired help. The setting up of companies, taking of risk and investing of scarce capital is not done in order to provide high-paying jobs - or any specific number of jobs. That, if it happens, is incidental and is a function of the interplay between labour and capital in a free market - which we don't have.
I'm quite sure that shareholders and those pensioners, investors, mutual fundees and other ordinary people counting on dividends and stock price aappreciation to make ends meet would appreciate the company holding the line on costs.
Unencumbered, unborrowed investment capital is in short, short supply in an expensive economy like ours here in B.C. Labour, on the other hand, were it not protected and coddled by law and government edict (minimum wages, strike laws, progressive taxation) would be in vast oversupply. Hint: what do you think the REAL unemployment rate is? Ask your friends and neighbours.
Rationales like "I need more money becuse I have XXX expenses" and "I deserve more money because I work hard", or "Other companies pay more so I should get more too" are not grounded in reality.
pwlg
30 weeks ago
ceo salary - Compass
Here's the low down on Gary Green, CEO Compass Group.
In 2010 Green took home $2.6 million USD in both salary and bonuses. But wait that's not all.
Green also received $1.13 million USD in stock for his hard work. But wait that's not all.
Green while wanting his workers to earn less than those working in competing businesses he earned twice more than his competition's CEO's. It is said that Green has a sign on his desk that reads:
What's good for the gander isn't good for the goose...
Green isn't the only senior exec at Compass that took home lucrative salaries, bonuses and stock options from their shareholders investments (which incidentily comes from the productive work of Compass' workers on the floor) trump the salaries, benefits and stock options of those competitors in similar positions.
Compass shares are trading on the London Exchange at prices small investors could never afford. In fact, Compass shares are trading well above the highest share price of any company on the TSX.
Large institutional traders and investment houses are behind Compass' share price not your average investor as Kreditanstalt seems to imply.
Source: Bloomberg Businessweek
It's time for union pension funds, said to be worth more than $3 trillion worldwide, to divest from companies like Compass and put their member's pension dollars in businesses that promote living wages, equity and good employee relations.
ifsandsnbutts
29 weeks ago
As a worker, or a customer...
if you have a complaint against this company, post it. If and when enough people do...change might be the result. As it is, there is no reason for them to change practices or attitudes:
http://www.compassgroup-usa.co/index.html
crankypants
29 weeks ago
One has to wonder
One has to wonder if this company would be more willing to negotiate in good faith if they were not the benefactors of the "essential services" ruling courtesy of the LRB.
I think that the senior care homes that have a contract with Compass should be exposed so that people could put pressure on them to consider using another provider or even, horror of horrors, hire their own staff to handle the food services. The people operating these care homes may even find out that their food costs may actually go down and improve their own bottom lines.
Vox.Pop
29 weeks ago
NDP Policy on Fairness
It's time for the BC NDP to announce that a living wage will be demanded from any organization that is in receipt of ANY taxpayers' funds OR is subject to 'essential services' legislation. This should be a firm plank in their next set of election promises that will be implemented within 6 months of winning the next election.
Let's see a clear difference in social attitudes between the NDP & the parties of greed.
anne cameron
29 weeks ago
BC Ambulance Service
pays qualified attendants in rural or remote communities an "on call" rate of two dollars an hour.