A&P in Bankruptcy Court Update

A&P in Bankruptcy Court Update

Here  is a brief summary of a hearing that took place yesterday in the bankruptcy court:

UFCW counsel emphasized the sacrifices employees had made since the last bankruptcy, advised the court that local unions were meeting with potential buyers in connection with the sale process, and stated that potential buyers should not attempt to go around the union.

A&P’s lawyers stated that while they would continue to meet with the local unions to try to negotiate acceptable agreements, that they expected soon to file an emergency motion seeking to modify our collective bargaining agreements.

The court approved revised store sale procedures which require A&P to consult with the union before making any store sale decisions.  The court also set a store bid timetable requiring that all bids under the initial bidding process be made by September 11, and that all qualified bids be announced on September 21.  The court also set forth a schedule for multiple and alternative bids that concludes no later than October 7, 2015.

The court also approved revised procedures requiring the company, in evaluating buyer bids, to consider the impact of a bid on the employees and their collective bargaining agreements, and whether the bidder has reached an agreement with the affected unions.

Key Foods, which has submitted bids for a number of stores, removed certain contingencies from its bids and provided the company with evidence of financing commitments.

The court approved $100 million in loans to keep the company operating during the initial stages of the bankruptcy.  Concern was expressed by the UFCW and others that the loan budget did not include sufficient funds for employee severance.  The court approved a procedure that set aside some funds, if the proceeds from sales of stores are high enough, to potentially pay some of these claims.  However, the amount, status, and availability of those set-aside funds is not clear and will not be decided before  the end of the year or early next year.

Please know that we are tirelessly working each day, exhausting all our resources to prevent stores from closing and to save as many jobs as possible. We will continue to keep you updated on any news, in the meantime you can find all our previous Pathmark updates here.

Stay strong, now, more than ever. You have the support, the backing and the solidarity of our entire 22,500 member union.

In Solidarity,

Bruce W. Both

President

UFCW Local 1500

Pathmark Bankruptcy Update on This Week's Meeting

English: The logo of The Great Atlantic & Pacific Tea Company. (Photo credit: Wikipedia)

The last few years working in uncertainty for Pathmark has put tremendous stress on you and your families. Since the latest bankruptcy filing, the unclear future has impacted our entire union.  Please know that we are tirelessly working each day, exhausting all our resources to prevent stores from closing and to save as many jobs as possible. Now, more than ever, we must stand together and support each other. We are with you.

On Wednesday we, along with representatives of the UFCW International and UFCW Local Unions, met with representatives from A&P to discuss critical issues in the bankruptcy.

We discussed crucial issues such as, the sales process, to find out out the company’s plans and motives to sell the remainder of its stores. We also deliberated with the company on their proposed modifications to our already modified contracts.

As we previously updated, A&P is again proposing “adjustments” to our contracts that stand to eliminate or alter many of our contractual protections and benefits. These terms will most likely diminish the value of A&P’s assets and threaten thousands of jobs. Here are some concessions A&P is seeking:

•   Displacing workers with seniority (elimination of bumping rights)

•   Limiting our right to strike

•   Letting non-union workers come into our stores and do our jobs

•   Reducing or eliminating our severance pay

Each one of these issues was discussed with urgency on Wednesday and we collectively conveyed this message to A&P: our members have already sacrificed more than enough. These proposals are very sensitive, they stand to affect thousands of families throughout the Northeast.

UFCW International President Marc Perrone has been very active in voicing his support and solidarity.  He has voiced our collective concerns to the board of Fortress Investment Group, the financing firm hired by A&P.

We will be meeting with the company again on Tuesday, August 11, 2015 to continue negotiations.
I must encourage you all to not buy into the rumors you hear throughout the stores. There are many rumors circulating throughout all A&P stores and throughout social networks. Do not empower them by continuing to spread them. Once we have any factual information, you will be immediately notified.

All of the UFCW Local Unions remain in constant contact. We are united and are continuing to meet with potential buyers to discuss their acquisition of stores, and continue to meet with and urge our union employers to place bids on the unsold stores.  

We will continue to keep you updated on any news, in the meantime you can find all our previous Pathmark updates here.

Stay strong, now, more than ever. You have the support, the backing and the solidarity of our entire 22,500 member union.

In Solidarity,

Bruce W. Both

President

UFCW Local 1500

A&P Gets a New CEO

Pathmark (Photo credit: Wikipedia)

Attention Pathmark members: A&P has named Paul Hertz as new CEO.  Hertz replaces Sam Martin, read more.