Sysco Corporation (NYSE: SYY) is calling on Teamsters Locals 630 and 848 to end their strike at the company's Los Angeles facility, saying the two sides have reached agreement on economic terms but remain at odds over a single contract provision.

According to a statement from the company, the agreed economic package includes an $8.00-per-hour wage increase by April 2027, representing wage growth of more than 40% over the contract term. The offer also includes increased pension contributions and pension-eligible hours, a sixth week of vacation after 30 years of service, and double-time pay after 12 hours. Sysco said the top hourly rate would exceed rates in a recently ratified agreement with another major foodservice distributor by October 2029.

The remaining sticking point is union-proposed contract language that Sysco says could allow work stoppages at any time. The company said it cannot accept terms that would expose hospitals, schools, restaurants, and other customers to repeated service disruptions.

"We value our Los Angeles colleagues and have negotiated in good faith to agree a highly competitive economic package that delivers meaningful improvements in wages, pension contributions, benefits and time off," said Ron Phillips, Sysco's Chief Human Resources Officer. "The sole remaining issue is proposed language that could permit work stoppages at any time."

Sysco operates 339 distribution centers across 10 countries and serves approximately 730,000 customer locations. The company reported sales of more than $81 billion in fiscal year 2025, which ended June 28, 2025.