Cintas
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Cintas is a publicly traded company headquartered in Cincinatti, Ohio and operating in the USA and Canada. They offer a number of services with their primary business (75% of revenue) involving the rental and laundering of uniforms and entrance mats [1]. Competitors offering similar services and classified as being in the same industry include Aramark, G&K Services, UniFirst and others[2].
As a company, Cintas has been both lauded and criticized.
The company has grown consistently, claiming 37 years of consecutive revenue growth. Growth has been both organic and from acquisitions large and small. Revenue in 2006 was $3.4 Billion and Net Income $327 Million [3]. The company claims to be the largest in the industry. They have garnered industry awards from publications such as Fortune in the USA and Report on Business Magazine in Canada.
Cintas' critics include unions, former employees, and former customers. See below.
History
In 1968, founder Richard Farmer started his own company and eventually took over his grandfather's rag cleaning business to create Cintas. The company went public in 1983.
In the 1990s, the company experienced rapid growth following a number of major acquisitions in the USA and Canada, including Cadet, Uniforms to You, Unitog Company, Image Apparel, and Omni Services. In 2006 Cintas bought the uniform divisions of competitor Van Dyne Crotty. [4] [5] [6]
Corporate governance
Current members of the board of directors of Cintas are: Joyce Hergenhan, Gerald S. Adolph, Paul R. Carter, Gerald V. Dirvin, Richard T. Farmer, Scott D. Farmer, Roger L. Howe, Robert J. Kohlhepp, David C. Phillips.
The company recently has made changes in its bylaws that affect how board members are elected. The company's latest 8-k report states that directors must be elected by a majority of votes cast. The company had opposed that proposal, which was presented at its annual meeting in October 2006 by the Carpenters Union. [7]
Critics of the Company
Cintas has received harsh criticisms from some employees and unions. Labor unions UNITE HERE and the International Brotherhood of the Teamsters have filed several allegations of unfair labor practices against the company on workers' behalf. Following the death of a Tulsa, Oklahoma, worker in March 2007, both unions and several Members of Congress have called for stricter health and safety standards at the company's laundries. [8] [9]
Forbes Magazine published an article in November 2006 describes complaints by four former employees and customers that the company is "nickel and diming everyone to death." [10]
Forbes Magazine recognized Cintas as one of their "Most Admired Companies" for six straight years.