Park USA Makes Furloughed Teamsters Local 727 Members Whole

Teamsters Local 727 applauds the recent efforts of valet parking company, Park USA.

A small privately-owned valet company based out of Elgin, IL, Park USA  was the first parking company (of what will hopefully be many) to pay illegally furloughed Teamsters Local 727 parking members using approved funding under the Paycheck Protection Program (PPP), a provision of the recently passed Coronavirus Aid, Relief, and Economic Security (CARES) Act.

This PPP funding, signed into law along with the CARES Act on March 27 of this year, was created to incentivize small businesses to keep their entire workforce employed during the COVID-19 crisis.  Participation in this program ensures that each qualifying company will receive up to eight weeks of payroll assistance in the form of a federally backed loan that must be exclusively used for purposes permitted under the Act (including wages and benefits of employees).  In order for the loan to be completely forgiven the company must only use the money for the permitted purposes and maintain its normal staffing levels and regular wages (based on the previous one-year period) and use at least 75% of the funds for payroll costs.

Like a number of other parking companies, Park USA illegally implemented a work furlough of its employees without first notifying or bargaining with the Union. Upon learning of the furloughs, Teamsters Local 727 sprang into action and filed a grievance and an unfair labor practice charge against the company for violation of the contract and failure to bargain. After initial grievance discussion, Park USA agreed to work with Teamsters Local 727 to ensure that the furloughed members working for the company would be paid for any lost work hours and benefits. The company’s PPP funding was approved on April 8 and came as a welcome relief to both Park USA and Teamsters Local 727. This funding now guarantees member wages and benefits – including health care – through May 10.

“However, this valet company committed themselves to exhausting all options to secure financing and to abide by the CBA and make their employees whole. Not only is furloughing the members a violation of the contract but it’s a morally bankrupt decision. While other companies blamed COVID-19 and picked profit over people, Park USA has worked with the Union to find a solution and securing the necessary funding to support their employees during this international health crisis. For that, we applaud them,” said John Coli Jr, Secretary-Treasurer of Teamsters Local 727.

“The Union expects all companies to show this kind of loyalty to their employees in the weeks to come and we will accept nothing less. If these parking companies won’t follow Park USA’s lead and do it because it’s the right thing to do, we will hold them accountable to the law and the collective bargaining agreement,” added Coli.

Any questions should be directed to Business Agent Ben Rodriguez at 847-696-7500.

Nothing in this article should be read as the union’s waiver of any legal argument, position or grievance(s), or as a waiver of any rights, arguments, or defenses under any contract, collective bargaining agreement, or applicable law. The union does not forfeit its right to make any and all supplemental arguments.

Category: PARKING, Union News