In Detroit, Michigan, the public school system hires an outside custodial company to clean the buildings, rather than having internal employees do the work. However, that company is now threatening to cease working, alleging that the school system still owes them more than $18 million.
The company in question has been working in this capacity with the school system for a few years now, beginning in 2011. According to a recent filing with the Michigan Workforce Development Agency, the company believes that the work stoppage could impact around 400 different workers.
However, the school says that the company, known as Sodexo, is not performing in the way that was dictated in their business contracts. The school's officials do not feel that the work is getting done to their satisfaction and that the schools are not as sanitary and clean as they should be. In fact, they even told Sodexo recently that they were considering a termination of the contract if the company did not provide better results.
This is not the first time that the two have clashed over something like this. Last year saw a similar dispute, and the school said in a statement that discussions over this have been going on almost since they first hired the staffing company.
Contract disputes over things like performance levels can get complicated when the results are subjective. In the above case, it is difficult to determine what should be considered satisfactory, for example. However, it is important for companies involved in disputes like this to know what rights they have, especially when it comes to employee payments.
Source: Click On Detroit, "Dispute over payment, performance threatens custodial work in Detroit Public Schools district" No author given, May. 07, 2014
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