Cintas Corporation (Nasdaq: CTAS) announced today it has appealed the
ruling issued March 9th, 2009 by the U.S. District Court for
the Southern District of New York dismissing the company’s federal
Racketeer Influenced and Corrupt Organizations (RICO) and trademark
infringement claims against the labor unions UNITE HERE, International
Brotherhood of Teamsters and Change to Win.
"We strongly believe in the merits of this case and are hopeful that the
Second Circuit Court of Appeals will not allow the District Court’s
decision to stand,” said Scott Farmer, Chief Executive Officer of Cintas
Corporation. "We disagree with the recent ruling and remain committed to
protecting Cintas and our employees from the unions’ ongoing extortion,”
he added.
Cintas alleges that, for the last six years, UNITE HERE and the above
named labor organizations have carried on a campaign of negative, untrue
and unlawful attacks against Cintas in an effort to extort concessions
from the company that would enable UNITE HERE and the Teamsters to
become the official bargaining representatives for Cintas employees
without a valid showing of majority support and without those employees
ever being able to freely decide whether they want a union. At the
outset of its corporate campaign against Cintas, Bruce Raynor,
Co-President of UNITE HERE publicly stated he intended to ‘break the
back’ of Cintas if the company did not agree to his demands. The company
has long maintained that the right to choose whether to be a member of a
union belongs to each individual employee, and has continually
reiterated its commitments to protect its employees’ rights to the
secret ballot election process.
Although the District Court dismissed Cintas’ federal claims, the
company’s state law claims remain viable. Those claims include
violations of Ohio’s trademark laws and the Ohio Corrupt Practices Act,
which is Ohio’s version of RICO. The District Court did not dismiss
Cintas’ state law claims on the merits and, instead, directed that those
claims should be litigated in an Ohio court.
Cintas has re-filed its state law claims in the Court of Common Pleas
for Warren County, Ohio. In addition to its Corrupt Practices Act and
trademark claims, Cintas also has filed a defamation claim detailing a
2004 news release issued by UNITE HERE – which was intentionally made to
appear to have been issued by the U.S. government – accusing the company
of "widespread and major” labor law violations. The union later
acknowledged that the government played no role in the issuance of the
press release.
In recent statements made by the executive board of UNITE HERE during
the ongoing federal investigation into Bruce Raynor’s alleged criminal
behavior, they accuse him of creating ‘chaos and internal destruction’
among the dues-paying members he represents. The UNITE HERE Executive
Board has also accused Raynor of using telemarketers and computerized
calls to harass union members - another example of why more than 150,000
of his members have left his organization in the past nine years.
According to Cintas, other forms of threats and harassment used by
Raynor during his years as president of UNITE HERE have backfired and
are now being used against him by his members and co-president, John
Wilhelm. Cintas believes Raynor’s pattern of improper behavior is
indicative of the same intentions he has for Cintas employees – the very
people he claims to want to represent – should UNITE HERE succeed in its
attempt to "break the back” of Cintas and force the company to recognize
the union without a valid showing of majority support from Cintas
employees.
About Cintas Corporation:
Headquartered in Cincinnati, Ohio, Cintas Corporation provides highly
specialized services to businesses of all types throughout North
America. Cintas designs, manufactures and implements corporate identity
uniform programs, and provides entrance mats, restroom supplies,
promotional products, first aid and safety products, fire protection
services and document management services to approximately 800,000
businesses. Cintas is a publicly held company traded over the Nasdaq
National Market under the symbol CTAS, and is a Nasdaq-100 company and
component of the Standard & Poor's 500 Index.
