A recent AFL-CIO study examined alleged anti-union tactics by European companies in American Southern states. The premise of the study focuses primarily on analyzing “…the historical and cultural sources of deeply-rooted hostility in these states toward workers’ attempts to form and join trade unions and to bargain collectively with their employers.” The study refers to UNITE HERE (“UH”), the labor union which represents LSG Sky Chefs (“Company”) employees in various locations throughout the Company’s North America region. Further referenced, “right to work laws” do not apply to the Company’s employees due to the Railway Labor Act which governs our labor relations. 

As a company whose history spans over 70 years, LSG Sky Chefs has remained a viable employer throughout the U.S. region, currently employing over 12,000 employees in the U.S. In an effort to preserve objectivity, it is critical to point out that “right to work laws” have no bearing on the Company’s strategic decisions. To the contrary, the Company’s basis of facility locations throughout the country has been solely based on the needs of its customers. 

The Company respectfully and strongly disagrees with the study’s argument that European companies seek to locate in the South to avoid unions. Such a position simply does not apply to LSG Sky Chefs; the Company has, and continues to fully support workers’ rights and freedom of association. In fact, LSG Sky Chefs continues to invest in wages and benefits. Since 2014 employee wages have increased by 26%. Differences in wages at various locations are specific to the local labor market, as well as the wide variation in the cost of living in the cities where we have facilities. All wages and benefits are the result of collective bargaining between our company and UNITE HERE and in-compliance with various state-specific wage laws.

The Company is currently engaged in good-faith bargaining for a new national agreement. It remains hopeful negotiations will lead to an agreement with UH to offer increases in wages and benefits for employees.

Regarding the sale of LSG Sky Chefs, the collective bargaining agreement contains a successorship clause. Any new owner must honor UH as the recognized representative for all Company employees in North America and honor the terms and conditions of the collective bargaining agreement.

LSG Sky Chefs has improved wages and other benefits over the years and continues to do so with the understanding that the company must remain viable in a highly competitive industry with historically low profit margins.