ARAMARK Corporation

ARAMARK Tower,
1101 Market St.
Philadelphia, PA 19107-2988
United States
215-238-3000 (Phone)
215-238-3333 (Fax)
Website: http://www.aramark.com

Number of Full-Time Employees: 259,000 (2012)
Revenue: $13.51 billion (2012)

Founded in 1959, ARAMARK is the world's third largest contract foodservice provider (behind Compass Group and Sodexo) and the second largest uniform supplier (behind Cintas) in the US. It provides contracted food services and facilities management and its ARAMARK Refreshment Services unit provides vending and beverage services. Through ARAMARK Uniform and Career Apparel, the company supplies uniforms for healthcare, public safety, and technology workers. (Source: Hoovers)

"Some of you may have been asked to sign a card authorizing the Union to represent you and your fellow ARAMARK employees here at Western Washington University...A union can also cost you your job. As non-union employees, you do not have to worry about the possibility of a strike. At Union Companies, strikes are common place. Employees who are on strike receive no paycheck and are not allowed to collect unemployment compensation. Worse than that, employees who go on strike can be permanently replaced..." -- from a 2012 letter mailed to employees by Stephen Wadsworth, Regional District Manager for ARAMARK. A spokesperson for ARAMARK clarified that the company would respect the workers' right to unionize, but added that "we do not believe that third party representation best serves the interests of our employees, the students, or our client." The scare tactics didn't work and the union was voted in. (Source: KOMO, 4/19/2012)

Operations Info

As a privately-held company, ARAMARK is not required to disclose details of its operations or finances.

Subsidiaries:
A complete list of ARAMARK's subsidiaries can be found in Exhibit 21 of the company's 10-K report filed on 12/10/2012: http://www.secinfo.com/d6rn.p18.7.htm#1stPage

Corporate subsidies:
Between 2001 and 2010, ARAMARK and its subsidiaries received more than $4.5 million in tax subsidies and government assistance. The subsidies took the form of enterprise zones, tax credits, grants, and training reimbursements. (Source: Good Jobs First Subsidy Tracker)

Profit Margin: N/A

Management Profile

Highest paid executives:

Eric J Foss, CEO and President - $8,055,495 (2012)
Joseph Neubauer, Chairman and former CEO - $6,061,828 (2012)
L. Frederick Sutherland, EVP and CFO - $1,598,691 (2012)

Corporate ownership:

ARAMARK is a private company owned by an investment group led by chairman Joseph Neubauer. (Hoovers)

Contract Problems 

Following is a sample of the many problems with ARAMARK-run services:

  • Two Aramark employees were arrested in 2012 while working at New Mexico prisons. Aramark employee Mel Baca was accused in July of smuggling food to inmates at the Central New Mexico Correctional Facility in Los Lunas. Investigators said he also had a cell phone, knife, liquor and prescription medication. Another Aramark employee, Candace Holmes, was arrested in June for smuggling drugs into the Las Cruces prison.(Source: KOB.com, 8/1/2012)
  • An expose by The Lens, reviewing health department records of inspections of school cafeterias in New Orleans, LA, found that of the 16 direct-run schools and the 17 charter cafeterias run by ARAMARK, 14 received critical violations, with four of those having corrected the problem upon a re-inspection. Four of those critical violations were for rat feces. (Source: The Lens, 2/15/2012)
  • The Niagara Health System, which battled a deadly C. difficile outbreak in 2011, cut ties with ARAMARK, the firm that was managing its cleaning services, amid allegations of lax housekeeping. Aramark allegedly contributed to the C. difficile outbreak by cutting corners, using cheaper cleaning chemicals, and reducing staffing levels. (Toronto Star, 3/27/2012)

More information about ARAMARK contract problems:

  • AFSCME Privatization Update:

http://www.afscmeinfocenter.org/privatizationupdate?s=Aramark&cat=5

  • Private Corrections Working Group ARAMARK Rap Sheet:

http://www.privateci.org/rap_aramark.html

Labor Record

  • In 2005, the Michigan Unemployment Insurance Agency settled with Aramark for $2.4 million in a dispute involving the company breaking the law to avoid paying unemployment insurance taxes. Aramark's scheme consisted of consolidating eight businesses into a single company that would pay a lower unemployment insurance tax rate than the eight separate enterprises would have. This constituted a clear case of tax evasion. The state determined that Aramark's illegal actions would have cost the state's unemployment insurance system $5 million. (Michigan Unemployment Insurance Agency press release, 2/7/2005)
  • Food service workers at Boston's Fenway Park filed a class-action lawsuit against Aramark Sports, the ballpark's concessionaire, which they accused of pocketing their tips and service charges. In July 2009, Aramark settled with the workers for $1.5 million, while denying the charges. The previous month, food service workers at Boston's two public convention centers agreed to settle a similar suit against Aramark for $1.75 million. In both cases, the workers claimed that Aramark charged customers an "administrative fee," which they said amounted to tips that employees never received. (Boston Globe, 7/31/2009)

NLRB:There are 18 NLRB board decisions or administrative law judge rulings involving ARAMARK.

OSHA:There are 127 inspection records for ARAMARK establishments in the OSHA database. In the vast majority of these inspections, health and safety violations were found.

Political Activity

In 2012, ARAMARK spent $200,000 on lobbying Congress and federal agencies. The company’s Political Action Committee took in $85,707 and spent $27,379 on federal races. Most of ARAMARK’s contributions went to Democratic candidates.  (Source: OpenSecrets.org

ARAMARK is not a member of the American Legislative Exchange Council (ALEC).

April 2013