Pathmark/A&P Update from Local 1500 President Bruce Both

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A Message from UFCW Local 1500 President, Bruce Both:

On May 5, 2011, a meeting was held between A&P and all the UFCW Local Unions that represent the companies under the A&P banner. The representatives of the various unions present, including Local 1500, were required to sign confidentiality agreements. Because of these confidentiality agreements the details of what was discussed at the meeting cannot be shared at this time.

The company has requested that the current collective bargaining agreements be changed or modified. These requests are currently under review by each Local Union, the International Union and Legal Counsel. These company requests are subject to negotiation.

At some time in the near future, the changes to your collective bargaining agreement will be presented. It should be noted that if the Unions cannot reach an agreement the Bankruptcy Judge, under Section 1113, could have the Unions’ collective bargaining agreements voided or modified.

The members of Pathmark will be receiving two mailings sent to their home. 

• You should receive a document “Notice of Meeting of Creditors” on May 31, 2011. In Chapter 11 cases, companies are required to schedule a meeting which any creditor, including employees, may attend where a representative of the company gives a short presentation with public information on the status of the bankruptcy and may answer some questions.
• There is no requirement or need for you to attend this meeting, and the notice can be ignored. 

• The second notice you will receive is from the Court regarding a “Bar Date” for the filing of any personal claims against the Company outside the collective bargaining agreement. Only those members with a personal claim need to take any action.

Please email us or contact us for any questions you may have at 1-800-522-0456.

Important Update Regarding the A&P/Pathmark Bankruptcy

Image via WikipediaApril 15th, 2011

On Thursday, April 14th UFCW Local 1500 and other UFCW Local unions with membership working for A&P/Pathmark met with attorneys and financial consultants hired by the UFCW International to monitor the A&P/Pathmark bankruptcy. The following is a statement from UFCW Local 1500 President Bruce W. Both regarding the outcome of that meeting and the information presented:

“For the last several months members of Local 1500 working for Pathmark have continued to work hard, service the customers and are helping to return their company back on the road to profitability. At the same time, the officers and staff of Local 1500 have worked tirelessly to enforce the Union Contract, service Pathmark members and minimize the effect of several store closings. These have been difficult months for all concerned.

Despite the closing of almost 100 stores and numerous other actions to reduce debt and expenses, it has been clear to all of us involved that A&P/Pathmark may eventually seek to further reduce their expenses through reductions of their labor costs throughout their entire operation, as well as other concessions. Unfortunately, this is a standard action taken by companies that have declared Chapter 11 bankruptcy. However, this cannot be done till A&P/Pathmark negotiates with the affected Unions over any reductions or concessions.

It was reported back to us yesterday that we should expect that A&P/Pathmark would present this plan to the affected UFCW Unions at a meeting on May 4th. We should also expect that at this time A&P/Pathmark management would seek cost savings from their Union contracts. In addition to labor concessions it is possible that A&P/Pathmark could announce further store closings.

While we have no details about the reorganization plan or concessions to our contract that A&P/Pathmark wants, UFCW Local 1500’s leadership is committed to holding any possible reductions to their absolute minimum and demands that the sacrifice also come from A&P management, vendors and other creditors. We have made it clear that we will fight any effort to rebuild this company on the backs of its workers and our members.

Clearly we as a Union would aggressively fight back any misguided attempt by A&P/Pathmark to void the contract and apply what could only be referred to as the “nuclear option.” While we do not expect the company to attempt such a drastic measure, we are preparing for that possibility. The UFCW Local 1500 leadership has the responsibility to hope for the best but prepare for the worst. I assure you we are prepared.

We are required by the courts to negotiate with the company. Should the company seek concessions, we will be required to bring back to the Local 1500 Pathmark members whatever has been negotiated.
There will be much to discuss over the next several weeks and months. Difficult decisions will have to be made. However, unlike so many other companies that have recently gone through bankruptcies, you will have a voice and say in your future and the future of your company.

It is only with Union Solidarity that we will successfully beat back any attempts to reduce your health insurance plans, eliminate your pensions or significantly reduce your rights under your Union contract. It will only be when we speak as One Union with One Voice that your company will get the message that the workers will not shoulder the entire burden of turning this company back to profitability.

I will report back to you following the May 4th meeting. Till then we must stay united. Remember: “One Union, One Voice!!”
-Bruce W. Both, UFCW Local 1500 President

A Statement from President Bruce W. Both; Re: Pathmark Store Closings

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It is with much dejection to announce that UFCW Local 1500 has been notified by A&P / Pathmark that they will be closing three stores that employ members of UFCW Local 1500: Commack, Long Island; Hartsdale, New York  and Nostrand Avenue in Brooklyn. These stores are part of larger plan by A&P to close 32 stores in six states.

Company executives have listed the stores as "under-performing” and decided that these closings were necessary in order to demonstrate a strong solid Turnaround Plan in order to rebound from Chapter 11.

The following is a statement from UFCW Local 1500 President Bruce W. Both:

 “The loss of just one union member is one loss too many.  Local 1500 leadership is deeply troubled by today’s announcement and will aggressively enforce our collective bargaining agreement.  While we are all disappointed by today’s announcement, it should not come as a shock as we know that A&P/Pathmark must undergo massive changes to their corporate structure if they are to emerge successfully from Chapter 11 Bankruptcy.”

“The unionized members of Pathmark are the backbone of this company and the foundation on which any future must be built. Those employees affected by today’s announcement of store closings are victims of mismanagement by previous company executives.  As I have said before, store closings alone will not save this company and they must focus on providing their employees and customers with innovative leadership, cutting edge technology and a more thorough and competent understanding of the grocery industry.”

“Local 1500 leadership remains optimistic about the future of this company for one compelling reason: the unionized employees. We urge management to listen to the workers' suggestions as to how better operate these stores. Many Pathmark employees have been with this company for well over 3 decades and are more than experienced in running successful supermarkets.  After today’s announcement, we urge management to move past store closings, and begin to listen to their store employees and return this company to its rightful place as a leader in the grocery industry.”

Local 1500 will conduct a thorough process for the three store closures once the 90-day notice is given under the WARN Act.  For any questions or further comments please contact your Union Representative at 1-800-522-0456 or send us an email at info@ufcw1500.org.  Union Representatives will be servicing Pathmark stores to speak and answer any of the questions Pathmark members may have.  Additionally a Pathmark Hotline has been established to update all Pathmark members of current news and actions; you may reach the hotline at 1-800-522-0456 ext. 1355. 

Update, we originally reported 33 stores would close, we have confirmed through A&P 32 stores will close.

A Message from President Both

Image via WikipediaDecember 13, 2010

To: Local 1500 Members Employed by Pathmark
From: Bruce W. Both, President
Subject: Pathmark Bankruptcy


The Great Atlantic and Pacific Tea Company, Inc. announced on Sunday, December 12, 2010 that it filed a voluntary petition under Chapter 11 with the U.S. Bankruptcy Court.
A&P has secured an $800 million debtor-in-possession loan from JP Morgan Chase in order to keep operating.

Pathmark, which is part of A&P, will continue to conduct business as usual.

Further information will be forthcoming.