Compass Group Layoffs Hang in Balance as Contract Negotiations Are Underway; More Than 400 Jobs at Stake

Compass Group Layoffs 2018
iStock/ThitareeSarmkasat

Compass Group, USA, Inc., the U.S. subsidiary of Compass Group plc (LON:CPG), a British multinational company known for foodservice and support services, announced plans to lay off 412 employees across Michigan, Ohio, and Maryland. Headquartered in the Compass House in Chertsey, Surrey, the largest contract food service company in the world intended to begin its Compass Group layoffs in April 2018. But it looks like there’s a chance this will not be happening.

The company filed its Worker Adjustment and Retraining Notification (WARN) notices due to the closure of its Eurest Services account with General Motors Company (NASDAQ:GM). According to Compass Group,  “There are no bumping rights available for employees impacted by this mass layoff. There is no provision in the company’s policy for transfer, bumping or reassignment for salaried office or management personnel.”

However, this was clearly not the case, and it turns out none of those people may lose their jobs after all. The company’s marketing director later revealed that should a contract with GM end, the following managing company for those locations are expected to keep the current staff on. The United Auto Workers union in Michigan partially backed up this claim, saying that another food service company taking over would mean employees retain their current positions.

Compass Group WARN Notices 

Should Compass Group layoffs still occur, operations in Michigan impacted will include Warren Belleville, Romulus, Ypsilanti, Waterford, Pontiac, Lake Orion, Swartz Creek, Grand Blanc, Burton, and Lansing. The majority of the planned impacted jobs (357) are janitorial positions, with another 29 being housekeepers and 10 being integrations hourly-based.

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As for Ohio, the change in operations at 8752 Jacquemin Drive and 9287 Meridian Way, both in West Chester, were to impact 14 janitorial positions.

Lastly, the WARN notice filed in Maryland stated that the operations at 10301 Philadelphia Road in White Marsh would affect five employees.

All changes, should negotiations fall through and staff still lose their jobs, would take effect April 1, 2018.

 

Sources

Warn Notice,” Michigan Workforce Development Agency, January 31, 2018. 

Warn Notice, Ohio Department of Family Jobs and Services, January 31, 2018. 

Work Adjustment and Retraining Notification (WARN) Log Year 2018 – Division of Workforce Development & Adult Learning,”  Maryland Department of Labor, Licensing & Regulation, last accessed February 8, 2018.

Compass Group,Wikipedia, last accessed February 8, 2018.

Union: Jobs still safe if company loses GM contract, WNEM TV, February 8, 2018.

UPDATE: Despite layoff notices, GM support staff will remain employed, ABC12 WJRT, February 7, 2018.

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Categories: Job Cuts, News

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