Cintas Sues Union For Defamation,Trade Secret Violations and Other Actions
CINCINNATI - Cintas Corporation
filed Tuesday a multiple-count federal lawsuit against UNITE,
the Union of Needletrades, Industrial & Textile Employees,
for defamation, illegal use of trade secrets and other actions
that the union has taken in its year-long campaign against
Cintas. The union seeks to organize Cintas' employees without
giving those employees the democratic right to decide for
themselves through a secret-ballot election whether or not
they want union representation.
The lawsuit, filed in U.S. District Court in Cincinnati ,
seeks unspecified actual and punitive penalties.
One of the charges relates to a deceptive union news release
issued January 7 that had the appearance of being issued by
the federal government. The deceptive announcement –
which, among other things, wrongfully portrayed a union official
as a government contact – caused Cintas' stock to immediately
drop almost $5 per share on heavy trading, as confused investors
responded to the release's errors, mischaracterizations and
exaggerations. Hundreds of millions of dollars were lost in
Cintas' market value that day following the union's distribution
of its news release, directly affecting Cintas' 27,000 employee-partners,
many of whom own shares through the employee stock ownership
and retirement programs.
In January 2003, UNITE launched a campaign against Cintas
to organize the company's employees outside of the customary,
democratic secret-ballot election process. The union began
a number of initiatives against Cintas in order to pressure
the company into a nationwide agreement to circumvent secret-ballot
elections. Cintas supports its employees' free choice to decide
on unionization through democratic, government-supervised
secret-ballot elections – the process preferred by the
United States Supreme Court and the National Labor Relations
Board.
Cintas employees at dozens of operations have spoken out
in petitions against the union's campaign and harmful tactics,
and are in the process of filing their own private charges
against the union.
“We believe people have the right to say yes to unions,
and the freedom to say no,” said Cintas CEO Scott Farmer.
“We equally believe that the union does not have the
right to intentionally, knowingly and maliciously damage our
company and harm our employee-partners and their livelihood.
On behalf of our employee-partners, our shareholders and our
customers, it is only right that we hold this union accountable
for its actions.”
The lawsuit also claims that UNITE obtained Cintas' customer
and prospect lists, account information and other trade secret
information through “theft, misrepresentation, and inducing
breach of confidential relationships.”
Cintas is the nation's largest corporate uniform provider
and well-respected among the United States corporate community.
According to Fortune Magazine's ranking of more than 550 corporations,
Cintas has been listed, for the last four years, as one of
“ America 's Most Admired Companies.” Cintas also
has been recognized for its humanitarian deeds, including
receiving the Matthew 25: Ministries' highest public service
award, the “Corporate Humanitarian Award.”
Cintas provides highly specialized services to businesses
of all types throughout North America . The company designs,
manufactures, and implements corporate identity uniform programs,
provides entrance mats, restroom supplies, promotional products,
and first aid and safety products to more than 500,000 businesses.
Cintas is a publicly held company traded over the Nasdaq National
Market under the symbol CTAS, and is a Nasdaq100 company and
component of the Standard & Poor's 500 Index. The company
has achieved 34 consecutive years of growth in sales and earnings,
to date.
Contact:
Wade Gates
Cintas Corporation
513.701.1920
About Cintas
Headquartered in Cincinnati , 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 and first aid and safety products
for over 500,000 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. The Company has achieved 34 consecutive years
of growth in sales and earnings, to date.
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