Angelica Textile Services Co. - Workforce Reduction Went Smoothly, With No Litigation

Challenge

Angelica Corporation, the nation’s largest provider of laundry services to hospitals and other healthcare providers, needed to implement a company-wide reorganization of its 5,500-plus employee workforce spread over twenty-plus states. AGG was tasked to oversee all legal issues associated with project, further Angelica’s business goals and minimize all litigation risk associated with the workforce reductions from the reorganization.

Approach

AGG devoted a team to evaluate Angelica’s workforce and its contractual and benefits obligations to all of its employees, including those associated with its unionized workforce. At the same time, AGG trained Angelica’s core personnel involved in making all restructuring decisions to reduce any risk associated with the selection process, while simultaneously vetting the criteria used by Angelica. After considering the legal requirements in all jurisdictions where Angelica did business, AGG crafted all plan documents for the reorganization, analyzed the resulting risks from the selection process and was on site to assist with the implementation of the company’s business transformation.

Result

Angelica’s workforce reorganization went smoothly with no surprises either on the day of the announcement or thereafter. With AGG’s guidance, Angelica did not receive a single administrative charge or lawsuit arising out of its workforce reductions.