Update #18: UFCW Local 1500 on the A&P/Pathmark Bankruptcy

Update from UFCW Local 1500 on the A&P/Pathmark Bankruptcy

Representatives of UFCW Local 1500 and several other UFCW Local Unions met Monday, November 7th, with the management team from the Yucaipa Investment company. Yucaipa is one of the investors that will be part of the management team charged with turning around this company, both financially and operationally.  To be clear, Yucaipa will be playing a leading role in the turn around of A&P (Pathmark).

As of today, we know the following regarding this most recent transaction:

1. The current board of directors at A&P/Pathmark will be dissolved and replaced by a new board.  A Yucaipa representative will chair the new board of directors

2. The UFCW International Union will have a representative on the new board.

3. The company will switch from a public company to a privately owned company.

4. The company is scheduled to appear before the bankruptcy judge on November 14th to seek approval of these actions.

5. Pathmark/A&P hopes to exit bankruptcy in early 2012.

Many Pathmark members have experience with Yucaipa from previous company organizational changes.  Does this recent transaction mean the unions will no longer have to negotiate labor concessions as part of the company turnaround?


Absolutely not.   In fact, the entire agreement between A&P/Pathmark and the group of investors led by Yucaipa is contingent upon labor concessions being negotiated and approved by the membership.  Should those concessions not be negotiated and ratified, the likely end result would be the possible liquidation of the company.

As we have always stated, during negotiations we will continue to emphasize that real change must come from management and that the union members must be real partner if the company is to succeed.  Once the union negotiators feel that an agreement has been reached, it will be brought before you.  We do expect that these negotiations will conclude in the very near future.

Union leadership goals have not changed since day one of this bankruptcy. We want to reach an agreement that saves jobs, keeps much of our contract with Pathmark intact and helps return this company to profitability and growth.

Thank you for the continued confidence and support of your union leadership.  Members should continue to stay focused, united and informed.  Please report any rumors to your union delegate.  Follow our updates on the union website and our Facebook page. As we have all along, we will continue to disseminate information to you in compliance with the confidentiality guidelines of the bankruptcy court.