UPDATE ON A&P BANKRUPTCY AND THE ISSUE OF SEVERANCE & BUMPING
September 2, 2015
the announcement of A&P’s bankruptcy, we know how difficult this
process has been for you and your family. From the very start, we’ve
made clear we will fight as hard as we can for the benefits and wages
you’ve earned with your hard work.
part of our efforts to keep you informed of any and all developments,
we wanted to make you aware of the latest developments, specifically as
it relates to severance and bumping.
a hearing before the U.S. Bankruptcy Judge focused on those two issues,
and we have made clear to the judge, that you and your family
sacrificed for the company to succeed. These sacrifices are real and
that A&P must meet its responsibilities.
In terms of severance
payments, the judge strongly urged A&P to get the necessary
financing from its lenders to increase severance pay for those laid off
from the initial 25 closing stores to 52%. The judge is also urging
A&P to pay an upfront severance payment that better reflects your
years of dedicated service to your community and this company. After the
52%, members will qualify for additional severance payments depending
on the outcome of store sales and other issues.
know that this severance should be higher, and that this amount is not
what you deserve, but we want you to know that we are fighting as hard
as we can to increase this severance.
In terms of bumping,
the judge did authorize changes to the bumping provisions in our
contracts. He ruled that the Locals can only put a bumping plan in place
that does not cost A&P any more money.
were only given until Thursday, September 3rd, to complete this
process. The tight deadline makes executing a plan like that
we want to thank you for the actions that so many of you have taken
throughout this terribly difficult process. You have made a huge impact
during these proceedings.
judge made a point to recognize all of your efforts including
submitting personal letters to him, sending our petition with thousands
of our signatures, and recognizing our brave members who testified in
of your efforts, we were able to put a face to this bankruptcy and made
our voices heard when the company tried to silence them. You told your
stories of dedication and sacrifice for the company and stressed the
turmoil that A&P’s failed strategies and the bankruptcy has had on
you, your family and your community.
In short, by working together you’ve made a difference to everyone who is part of our union and A&P family.
Please visit our Pathmark update page for all archived updates.