Handler AGI claims union’s ‘misleading’ campaign cost it $20m in airline contracts

Bangladesh opens door to private air cargo operators in logistics push In a move designed to tackle chronic congestion and delays in airfreight exports, Bangladesh will ... WMT: VERTICAL INTEGRATION IN LOGISTICSJBHT: HERE WE GOPG: STEADYEXPD: NEW RECORD BA: DELIVERIESMAERSK: BEAR CAMP MUSINGSCHRW: HIGHER HIGHS ON THE RADARWTC: 'ONE RECORD'HLAG: EARNINGS GUIDANCE UPGRADE AAPL: GLOBAL SMARTPHONE SHIPMENTS VW: THE IMPACT VW: MASSIVE JOB CUTS CONFIRMEDEXPD: BULLISH WMT: VERTICAL INTEGRATION IN LOGISTICSJBHT: HERE WE GOPG: STEADYEXPD: NEW RECORD BA: DELIVERIESMAERSK: BEAR CAMP MUSINGSCHRW: HIGHER HIGHS ON THE RADARWTC: 'ONE RECORD'HLAG: EARNINGS GUIDANCE UPGRADE AAPL: GLOBAL SMARTPHONE SHIPMENTS VW: THE IMPACT VW: MASSIVE JOB CUTS CONFIRMEDEXPD: BULLISH US handler Alliance Ground International (AGI) has accused the Service Employees International Union (SEIU) of orchestrating a campaign of “false and misleading” allegations that led to the loss of almost $20m in airline contracts. AGI has also filed an injunction to halt the campaign. The handler alleges SEIU and its Local 32BJ deliberately targeted its airline customers, government agencies, and other stakeholders in an effort to pressure it into recognising the union outside the normal labour election process. The company claims the campaign resulted in the loss of five contracts with International Airlines Group (IAG) carriers worth some $13.9m a year, while Singapore Airlines is alleged to have shifted business worth a further $5.9m annually to another handler. The lawsuit claims the union circulated letters, ‘fact sheets’, and social media posts highlighting safety complaints, employment lawsuits, discrimination allegations, and criminal proceedings involving a former AGI executive, with the intention of damaging AGI’s commercial relationships. According to AGI, the ‘fact sheets’ contained “skewed and inflammatory content”. The handler claims: “In them, defendants take isolated and, in some instances, contested or unresolved regulatory matters, and distort them into a misleading if not false and damaging portrayal of AGI as a dangerous and lawless employer whose operations and workforce are unsafe.” In May, The Loadstar had received documents containing complaints against AGI from SEIU32BJ, and ran an article, which was seen by Singapore Airlines, which then emailed AGI with its concerns. They said: “Greetings. I’m reaching out regarding the article published by Loadstar yesterday on the situation in JFK. Our management in HQ is concerned, and we would like an update on the health of the stations where AGI is appointed as our ground handler (including offline points). As such, may we request for an update for ORD and ATL on the following items: Safety audit of all ramp and warehouse equipment. Review of ramp and warehouse processes for any safety gaps. Review of manpower and training. Thank you. Best regards.” While acknowledging that allegations did not necessarily establish wrongdoing, the airline said the combination of safety complaints and employment litigation presented “regulatory, operational and reputational” considerations that required review. It added that local station teams at Los Angeles, Chicago, and Atlanta had already been engaging AGI over operational issues. The court filings also show that a British Airways supplier manager told AGI that the union’s allegations had been escalated internally across the airline group. “Our Aer Lingus colleagues are taking the lead on this as the majority of the allegations are concerning AGI’s Miami operation,” he wrote, adding that Iberia had also raised concerns. “I would recommend AGI review the allegations and issue a statement addressing these concerns.” AGI alleges the campaign reached more than a dozen airline customers across at least five airport locations at a time when it was seeking to renew and expand existing business. It claims five IAG agreements were terminated, and Singapore Airlines shifted business elsewhere, amounting to the loss of at least 10 contracts representing more than $19.8m in annual revenue. The handler further claims the campaign has forced it to devote “countless” staff hours to customer calls, reassurance efforts, and enhanced safety audits, including what it describes as hundreds of additional labour hours to satisfy airline requests, warning that further commercial losses are likely unless the campaign is halted. As of today, the case is still in its early stages. While summonses have been issued, there is as yet no response from SEIU. But the union sent a statement to The Loadstar: “AGI has filed a state tort lawsuit against SEIU and SEIU Local 32BJ that seeks to chill SEIU and 32BJ’s First Amendment-protected speech and organizing activities regarding working conditions at AGI. SEIU and 32BJ believe the lawsuit is meritless and will vigorously defend against it.” The dispute follows months of scrutiny over AGI’s labour and workplace practices. In May, SEIU Local 32BJ filed Occupational Safety and Health Administration (OSHA) complaints on behalf of workers at New York’s JFK and LaGuardia airports, alleging malfunctioning ground equipment, inadequate training, flooding in cargo facilities, insufficient heat protections, and pressure to work with too few staff. In a further blow to AGI’s employee relations, AGI is also facing several employment class actions in California, alleging wage-and-hour violations. Former employees have filed lawsuits in Los Angeles and Palm Springs alleging unpaid overtime, missed meal and rest breaks, off-the-clock work, unreimbursed business expenses, inaccurate wage statements, and waiting-time penalties under California labour law. The cases have been brought by different plaintiffs represented by different law firms, but contain broadly similar allegations that company-wide policies deprived non-exempt employees of wages and statutory protections. AGI has denied wrongdoing in those proceedings and, in at least one case, has sought to compel arbitration. The litigation comes at a pivotal time for AGI. The North American ground handler, which was acquired by private equity firm Lone Star earlier this year, has publicly stated its ambition to expand into Europe through acquisitions once market conditions allow. For uninterrupted access, sign in or sign up to The Daily News, Premium or The Loadstar Enterprise Plan. Comment on this article