Flying Food Group, LLC filed a lawsuit on March 16 in the United States District Court for the Central District of California against UNITE HERE Local 11, alleging that the union and benefit fund trustees denied health insurance coverage to eligible employees at its Los Angeles International Airport facility despite the company’s full and timely contributions.
The case centers on claims that some workers were unable to enroll or obtain coverage even though Flying Food Group says it paid millions of dollars in health benefit contributions. According to the complaint, Article 39 of the collective bargaining agreement required the company to contribute $3.72 per paid employee hour beginning May 1, 2019, $4.09 beginning July 1, 2020, and $4.50 beginning July 1, 2021, to the Santa Monica Hotel Employees and Restaurant Employees Benefit Fund. Flying Food Group said it made these payments in full and on time while alleging that the union and trust failed to provide benefits to all eligible employees. The U.S. Department of Labor says ERISA fiduciaries must act solely in the interest of plan participants and beneficiaries and for the exclusive purpose of providing benefits and paying plan expenses according to court documents.
The lawsuit also alleges that UNITE HERE Local 11 denied health benefit assistance to an employee who declined to support union strike activity. The complaint states that Local 11 representatives refused to help employee Esperanza Maciel enroll in health benefits because she did not want to participate in a strike or attend union meetings. As a result, Maciel went without health insurance from about May 2019 until September 2024 and paid out of pocket for care, including travel to Tijuana, Mexico, for psoriasis treatment. The National Labor Relations Board says employees have the right both to engage in union activities and also to refrain from such activity according to court filings.
Flying Food Group operates a network of modern production kitchens across the United States, providing meals and logistics services primarily for airlines and retail stores. Founded in 1983, it serves more than 75 airlines along with over 4,500 retail stores and delivers more than 120 million meals annually according to company information.
The outcome of this legal dispute may affect how unions administer benefit funds for covered employees at similar facilities.
