January 8, 2007
Stories
Right Column
ARAMARK Expands in Northwest, Acquires Overall
TRSA Calendar
ARAMARK Uniform Services, Burbank, CA, recently
announced its acquisition of Overall Laundry Services Inc.,
a uniform rental and sales company based in Everett, WA.
February 27-March 1, 2007
Tech/Plant Summit
Atlanta, GA
Registration: George Ferencz
“This is a significant acquisition for our company. Overall
has been a highly-regarded competitor of ours in the Pacific
Northwest. I am confident we will provide its many loyal
customers with unconditional care and service that are the
standards of ARAMARK Uniform Services,” said
ARAMARK President Thomas Vozzo.
April 20-26, 2007
Production Management Institute
Denton, TX
Contact: Bill Mann
The acquisition—completed on Dec. 1—includes Overall’s
nine facilities located across the Pacific Northwest, as well
as the Everett headquarters operation.
June 10
TRSA 95th Annual Meeting & Clean Show Reception
Las Vegas Hilton
Las Vegas, NV
Contact: George Ferencz
“Like ARAMARK, Overall Laundry Services has long been
admired for its superior customer service and product
quality,” said Brad Drummond, president of ARAMARK
Uniform Services. “The acquisition further strengthens
ARAMARK’s ability to deliver a high level of customer care
to businesses within the Pacific Northwest.”
June 11-14, 2007
Clean ‘07
Las Vegas, NV
Web site/Registration: View (www.cleanshow.com)
Contact: George Ferencz
Overall Laundry Services, a family business founded in
1920, has growth rapidly in recent years and ex-President
Travis Keeler said he felt ARAMARK shared his company’s
dedication to excellence. “We have vastly expanded our
services over the years and believe ARAMARK will provide
the same quality and service that our customers have
valued for more than 80 years. Like us, ARAMARK is
committed to providing excellent customer-driven service
and products.”
New Democrat Leadership Gavels in 110th Congress;
Industry Needs Helps in Supporting Legislative Agenda
This past Thursday, the 110th Congress began with a
change in leadership in both chambers. The exchange of
power means textile service operators need to increase
their awareness of what’s happening on Capitol Hill in order
to learn how new initiatives could affect their business. A
minimum wage increase will likely be passed early this
week. TRSA, as always, will keep track of legislation
impacting the industry and report to the membership in
Textile Rental magazine and the Textile Rental Weekly.
Not only should operator members become more aware of
the goings-on in Washington, but they should also become
more active. TRSA provides several ways for its members
to assist in the association’s lobbying efforts. One of the
most notable is TRSA’s March on Washington, May 7-8, at
the Westin Embassy Row. The conference will feature
sessions with elected officials, plus face-to-face meetings
with Members of Congress and their staffs on Capitol Hill.
Attendees also can meet lawmakers and Hill staff at a
September 17-19, 2007
Joint Committee Meetings
St. Louis, MO
Contact: George Ferencz
October 7-9, 2007
Managing Maintenance Institute
Lansdowne, VA
Contact: Bill Mann
Fed Business Opportunities
This Month’s Textile Rental
January Issue Picture
New Textile Service Member
Purity Services Inc., New Bedford, MA
Universal Linen Service, Louisville, KY
New Associate Member
American Associated Companies, Fayetteville, GA
Phoenix Scale Company, Glendale, AZ
Softrol Systems Inc., Acworth, GA
Capitol Hill reception. Both Operator and Associate
members are encouraged to attend this free event. The
industry must maximize participation so lawmakers hear
our industry’s message in the 110th Congress loud and
clear. To register for TRSA’s March on Washington, contact
Michael Wilson at 877/770-9274 or mwilson@trsa.org. To
reserve a room at the Westin, call 202-293-2100 and
reference “Textile Rental Services Association.” The group
rate for the March on Washington is $269/night plus taxes.
More on Government Affairs in New TRSA Publication:
Key Contact Network Newsletter
With the beginning of the New Year, TRSA is launching a
Key Contact Network Newsletter to keep members of the
Network better informed about the association’s important
legislative grassroots program. The Key Contact Network
brings together TRSA members from across the country to
help the association advocate pro-industry laws on Capitol
Hill and promote reasonable regulations from federal
agencies.
The ultimate goal of the Network is to have a textile service
member in all 435 Congressional districts. In particular and
more urgently, TRSA is looking for Key Contact Network
participants in the districts of each member of the House
and Senate leadership and in those of congressional
committee chairmen and ranking members.
The link below highlights those Members of Congress who
will lead key committees related to the textile services
industry. Click here to view the Congressional Members
on Key House and Senate Committee that will effect the
textile services industry.
If you personally know any of these members or if one of
these House members is in your congressional district, and
if you’re willing to develop a closer connection with them or
their staff in order to help your business and the industry,
please join TRSA’s Key Contact Network today. With
upcoming legislative and regulatory challenges facing the
industry, your participation is more important than ever
before. Please go to www.trsa.org/keycontact.asp and sign
up today!
Bipartisan Immigration Bill in the Works
A piece of legislation important to the industry that will be
discussed early in the 110th Congress is immigration
reform. Sens. Ted Kennedy (D-MA) and John McCain (RAZ) along with Reps. Jeff Flake (R-AZ) and Luis Gutierrez
began work in December on a draft bill that would abandon
a key component of last year’s Senate bill requiring illegal
immigrants to leave the United States before being able to
apply for citizenship. The plan being considered would
allow 10-11 million illegal immigrants to become eligible to
apply for citizenship, up from 7 million in the original Senate
bill. To be eligible for citizenship, illegal immigrants would
have to remain employed, pass background checks, pay
fines and back taxes, and enroll in English classes.
John Gay, co-chairman of the Essential Worker Immigration
Coalition and a guest speaker during last year’s March on
Washington, said recently, "We have the best chance (for
reform that) we've had in the seven years I've been working
on this issue."
In the House, new Speaker Nancy Pelosi and the
Democratic leaders are still formulating their course of
action. Pelosi must balance newly elected moderate House
Democrats who campaigned on tougher border security,
and members who share the AFL-CIO's opposition to a
guest worker program.
EPA Plans New Effluent Guidelines, But Industry Not
Included Thanks to Voluntary Efforts
Once again, the textile services industry has not been
identified for study for the development of new Categorical
Standards. However, operators should take note that the
plan does target four new industries for “heightened
scrutiny.” One of these, health services (hospitals), will
focus on the discharge of pharmaceuticals. Benjamin
Grumbles, EPA’s assistant administrator for water, told the
House Committee on Government Reform recently, “The
effort will be coupled with accelerated work on endocrine
disruptors that are making their way through wastewater
into the nation’s rivers and lakes, causing potential sex
changes in fish.” With EPA’s “voluntary” Safe Detergents
Stewardship Initiative (SDSI) in full swing, it may not be
long before our industry gets more attention on this subject.
EPA had looked at regulating the textile services industry
through effluent guidelines in the late 1990s. However, the
joint TRSA/UTSA LaundryESP voluntary compliance
program headed off the regulation, which would have cost
operators hundreds of thousands of dollars in order to
comply. The continued participation by association
members since then and the progress the industry has
made in reducing water, energy and chemical use has
worked to show EPA that the industry is serious about
maintaining its commitment of voluntary compliance.
Angelica Chairman to Address Major Investor
Conference
Angelica Corporation Chairman Steve O’Hara will make a
presentation during a meeting of the 9th Annual ICR
XChange Conference in Dana Point, CA. The meeting is
one of the preeminent investor conferences in the industry
featuring presentations from a variety of branded consumer
industries. The presentation will be a unique opportunity for
the industry to get in front of key investors.
O’Hara’s presentation is scheduled for 1:35 PST on
January 10, 2007. Angelica will simulcast the audio portion
of the presentation on its Web site at www.angelica.com.
Angelica Corporation, the largest provider of healthcare
textile services in the United States, is traded on the New
York Stock Exchange under the symbol AGL. O’Hara is
also a Director of TRSA.
More than 150 Already Signed Up for Tech/Plant
Summit 2007, Is Your Company?
Looking for innovative solutions to the most pressing
challenges our industry is facing, more than 150 attendees
have registered for the TRSA Tech/Plant Summit being
held Feb. 27-March 1 in Atlanta. With about two months
before the event, registrations are already closing in on the
total of those from last year’s Summit in Southern
California.
Why are so many planning on attending the Summit? First,
there will be more than 20 educational sessions, most of
which will be held at the state-of-the-art Georgia Tech
Global Learning and Conference Center. These sessions
analyze the contemporary issues facing operators, and
show how to run a more energy-efficient and productive
plant. Second, there will be plant tours that will highlight the
innovations on display, including a visit to ALSCO’s new
mega-plant in Doraville, GA. Also, there are countless
networking opportunities at the Summit, including the
Information Fair and Reception, Feb. 27.
Don’t be left out. Register today for the Summit by getting a
form at www.trsa.org. Owner/operators are encouraged to
attend and bring with them their general managers, plant
managers, maintenance engineers, technology specialists
and anyone responsible for improving plant operations and
implementing technology solutions. Operator companies
that send four or more employees save $50 on each
additional registration.
Because of the high number of registrations, the number of
available rooms at the host hotel, the four-star Grand Hyatt
in Buckhead, is dwindling. Contact the Hyatt directly by
calling 800-233-1234 and referencing “TRSA” to book your
room at the discount rate of $189/night plus taxes.
For more information, contact George Ferencz at 877/7709274 or gferencz@trsa.org.
2006 Healthcare Premiums Increase by 6.1%, Kept in
Check By Rise in HSA Participation
According to the National Survey of Employer-Sponsored
Health Plans conduced by Mercer Health and Benefits LLC,
employer-sponsored healthcare benefit costs rose an
average of 6.1% in 2006 to $7,523 per employee. The
increase was the same as in 2005. Additionally, Mercer
projects that the average cost to employers will remain at
6.1% in 2007. Healthcare costs have begun to stabilize
following a period of double-digit increases, which had
reached a high of 14.7%. Despite the reduction, healthcare
insurance premiums are still growing at a rate nearly double
that of inflation.
In part, the slowed increase in healthcare premiums can be
attributed to greater participation in Health Savings
Accounts (HSAs). HSAs are employer-sponsored health
plans that are used in conjunction with High Deductibility
Healthcare Plans and allow employees to make tax-free
contributions to a savings account to be used to cover
current and future medical expenses. Employees enrolled
in such a plan may then withdraw the money tax-free for
qualified medical expenses. The number of employers
offering HSAs to their employees nearly tripled in 2006 and
Mercer expects the number to triple again this year.
Recognizing that HSAs have continued to increase in
popularity amongst private employers, the 109th Congress
passed in December the Tax Relief and Health Care Act of
2006, which made it easier for employers to offer the plan
and fund them through the following means:
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Permitting a one-time, tax free rollover from
Flexible Spending Accounts (FSAs) and Heath
Reimbursement Arrangements (HRAs) into an
HSA;
Allowing for a one-time, tax-free rollover from
an IRA into an HAS;
Granting individuals the option to make
maximum contributions to HSAs regardless as
to when the plan began and employers the
option to make higher contributions for lower
wage employees.
For an in-depth list of the changes made to HSAs by
passage of the The Tax Relief and Health Care Act of 2006
please click here.
PMI—Leave No Managers Behind
Registration is now open for the 2007 TRSA/UTSA
Production Management Institute (PMI). PMI is the premier
production management education program in our industry.
PMI runs April 20-26 at Texas Woman’s University, Denton,
TX.
PMI begins at a basic level in Year I and advances to more
in-depth training in Years II and III. PMI focuses primarily
on topics related directly to production management.
However, each year of the program includes instruction in
management, leadership and communication skills for the
production environment. PMI Topics include:
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Applied Case Studies
▪ Problem Solving
Communications
▪ Production
Conditioning/Finishing
▪ Management Ethics
Energy management
▪ Quality
Ergonomics
▪ Customer Service
Financial Management
▪ Stock Room
Human Resource Management▪ Washroom
Leadership
▪ Fabric Technology
Management Skills
▪ Water Management
▪ Merchandise Management
▪ Time Management
▪ Plant Tours
▪ Plant Safety
PMI is for everyone involved in any way with production
operations, including production personnel, sales &
customer service and vendors to the textile services
industry. Register online, at www.twu.edu/lifelong -- go to
Production Management Institute. For more information,
contact Bill Mann at 877/770-9274, or e-mail him at
bmann@trsa.org. Leave no managers behind. Sign up for
PMI today!
State Watch
CT Publication Assists Employers in
Complying with Filing Requirement
Employers in the State of Connecticut who are required to
file copies of federal W-2 forms using magnetic media for
federal personal income tax purposes must also file these
forms using magnetic media for state personal income tax
purposes. The deadline for employers to meet this
requirement is Feb. 28. In order to assist employers in
complying with this requirement, the Connecticut
Department of Revenue Services has released a
publication that details the specifications and instructions
for reporting federal W-2s to the state. For example,
employers filing 24 W-2 forms or less are exempt from the
magnetic media filing requirement. Additionally, the
publication includes a list of frequently asked questions
associated with the magnetic filing requirement. To view
this helpful 22-page compliance assistance publication in its
entirety, please click here.
Court Rules Noncompete Agreements in TX
are Permissible in Some Cases
In 1994, the Texas Supreme Court rendered a decision in
the case of Light v. Centel Cellular Co., essentially
prohibiting the enforceability of noncompete agreements or
covenants with at-will employees in the state. Last
October, the same court revisited the question of whether
an at-will employment relationship invalidated any form of
noncompete agreement. In the case of Alex Sheshunoff
Management Services, L.P. v. Johnson, the employer
promised to share confidential information and specialized
training with the employee in exchange for the employee’s
promise to not compete against the employer for a period of
at least once year following their separation. The Texas
Supreme Court ruled that although the employee was
employed at-will, the noncompete agreement was
enforceable in this context because the employer had lived
up to its promise under the agreement by providing the
employee with confidential information and specialized
training and, as such, the employee should also be
required to be bound to his obligations under the
agreement.
Disclaimer: This item provides general information on a
recent court ruling on the enforceability of noncompete
agreements in Texas. TRSA members should consult their
legal counsel before making final decisions on developing
employment contracts to ensure compliance with Texas
state law.