Message to Local 1500 Members Working at Pathmark Supermarkets

Image by Getty Images via @daylifeDear Pathmark Member;

The A&P/Pathmark bankruptcy process continues to evolve. I realize the frustration you must all be feeling and I greatly appreciate your patience. I assure you the process is moving along.

The affected Unions and A&P are currently exchanging information. A&P’s financial data and business plan are continuously being reviewed. The Union negotiating team must have the most accurate and credible information to properly assess A&P’s current financial situation.

I can tell you that the company has given the UFCW Locals its initial proposal and it is being reviewed. I expect to make a summary of the company’s initial proposal available for your review within the next few days. I caution you that these are only the companies’ first set of proposals. As long time Union members, you understand that the first proposal will only be a starting point for negotiations and that we will only use it for purposes of negotiating a more reasonable settlement.

Our goal from day one of this process has been too work with the company to reach an agreement that allows them to recover and grow economically while protecting the rights and livelihoods of our members working in their stores. That goal has not and will not change.

While we must hope for and work towards the best possible solution, we must prepare for the worst possible result. Our staff has developed a comprehensive response should one become necessary.

Again, I thank you for your patience. I also want to thank you for the many words of support and encouragement I have heard over the last few weeks. As long as we continue our strong solidarity, we will survive these difficult and challenging times.

Remember: One Union, One Voice!!

Bruce W. Both
President

Statement from President Both; Re: A&P's Bonus Plan

Image via WikipediaThe following is a statement from Bruce W. Both, President of United Food and Commercial Workers Union Local 1500:


“On April 26th A&P submitted a revised incentive plan to U.S. Bankruptcy Court that would provide its top executives with up to $3.7 million in performance bonuses. The incentive plan replaces the one that was opposed by us and other creditors and was rejected by the bankruptcy judge in the case last month.

As we did previously, UFCW Local 1500 opposes A&P's latest plan to reward their top executives while our members continue to suffer. It is outrageous for top executives to continue seek bonuses that total up to $3.7 million while asking our members to continue to shoulder real sacrifices.

A&P continues to exhibit such indifference to the hardships of our members. Company executives that have been with this company for no more than a year in some cases are seeking to benefit from the hard work our members have put in over the last few decades in order to keep their paychecks coming. They seek to transfer money out of the pockets of our members and into their own pockets. That is not a responsible reorganization plan.

It has been over 130 days since A&P filed for bankruptcy and A&P still has no turnaround business plan, yet they continue to lobby the courts for bonuses. That is irresponsible and indicative of the management problems that have brought is to this point.

UFCW Local 1500 will continue to oppose these “Key Employee Incentive Plans” until they realize that the “Key” employees are the members of our Union working in the stores.” 

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Local 1500 Objects to A&P's bid for Bonus Pay Outs

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On Thursday, March 3, 2011, UFCW Local 1500 along with Creditors and Trustee’s objected to the Great Atlantic & Pacific Tea Co.’s bid to pay out $6.8 million in bonuses for their “key employee retention plan”.  A&P’s ‘retention plan’ asks for a loan of $6.8 million to pay 146 non-union employees, $1.76 million of that going to their top four executives.   The plan could allow the four senior executives to earn 175% of their base salaries while providing 100% bonuses for other participants.  Local 1500 is shocked A&P made this request since they have yet to establish a one-year business recovery plan.   We valiantly oppose their bid for a bonus plan and urge A&P to focus on rebuilding their historic company.

Local 1500 Secretary-Treasurer Tony Speelman expressed his frustration; “Their plan is to take care of the executives who brought them to their current bankruptcy state right now.  Our members are insulted and saddened that A&P continues to focus on short-term goals like paying executives rather than creating a solid, sound business plan to bring this company back to the top of the grocery industry. “

Today, both the Wall Street Journal and the Dow Jones Daily Bankruptcy Review, wrote about Thursday's objection to A&P's 'Employee Retention Plan'. please follow the links above and read them.

We will be discussing Pathmark/A&P and much more at our next General Membership Meeting, March 9, 2010.  For questions or comments please contact your union representative, or email us at info@ufcw1500.org.

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