2008 Woodie Awards
Scandal surrounds Aramark
Mark Maher '08
Issue date: 4/2/08 Section: News
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As an example of the types of allegations that have been brought against the company, an investigation found that, at the Los Alamos National Laboratory's cafeteria, Aramark had withheld back-pay and fringe wages, and had failed to pay some workers for lunch hours. As a result of the investigation, Aramark was forced to pay out over $100,000.
A food service worker in Michigan was apparently fired for reporting on unsanitary conditions, including rat droppings and mice in refrigerators. There were no other indications of misconduct or discipline on the part of the worker.
Besides specific examples, jobs with Aramark constitute more than half of Forbes' 2007 listing of the 25 lowest paying jobs in the country. Because of these incidents, as well as allegations that Aramark is guilty of age and gender discrimination and complaints brought by the National Labor Committee from many regions of the country, a rally was held last November in front of Aramark headquarters in Philadelphia. Since then, at least 25 of workers involved with the rally have been disciplined, demoted or fired.
Aside from worker mistreatment, many claim that Aramark is guilty of fraud, overbilling and driving up the deficits of the organizations with which Aramark works. In 2004, Aramark was forced to pay more than $3 million over allegations that they had accepted donations from the USDA without reducing the amount that the school district was charged. Even after paying such an exorbitant amount to settle, Aramark still claims that no laws were broken.
According to the Houston Chronicle, Aramark had inflated the number of free meals offered to children within the Houston Independent School District, which meant that the district was forced to pay over $200,000 as a penalty to the state.
Philadelphia's school districts terminated their contract with Aramark only two years into a five year contract. Aramark had promised to help eliminate the deficit that the school district was running. Instead, after one year, the deficit jumped to $4 million and $7 million after two years - an increase of 72 percent. Furthermore, students from across the country have complained of exorbitant prices. Arizona State University recently signed a contract with Aramark, who will increase the price that students must pay for the least expensive meal plan by $650 to $1500 and is not giving the university the opportunity to opt-out.
Viewing Comments 1 - 5 of 6
Marge
posted 4/02/08 @ 11:31 AM EST
My child's meal plan ran out of money is early November, I never investigated, I wonder if there was a fraud.
Fr. Benjamin J. Urmston, S.J.
posted 4/03/08 @ 2:31 PM EST
Do you think this article has been well-enough researched for Xavier U. to use it as we consider contracting Aramark as our food service provider? Aramark has submitted a bid. (Continued…)
Marg
posted 4/03/08 @ 3:20 PM EST
Fraud and Aramark are synonomous...one needs only to look at it's stock offerings to the public and its various interests, private, public, and private again. (Continued…)
daxson motis
posted 4/14/08 @ 1:25 AM EST
What matters is that this company should not be serving humans food let alone even dogs. Im a student who is forced to pay 2500 bucks a semester to eat that crap. (Continued…)
whittington
posted 8/09/08 @ 5:30 PM EST
I worked for Aramark here in florida,As far as I know, I still work there,Fiiday I was supended for no cheese in the potatoes,I know there is another reason, in july I was assaulted in front of another coworker,she did nothing, called no guard, as this is in a prison, nothing was done after this ,Aramark tried to push it under the carpet, Then as I said supened me for no cheese in potatoes, this is a very unfair company, treats employees like crap. (Continued…)
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