A&P asks bankruptcy court to set aside union provisions

[Omaha Steve]

Source: Lohud

Hoa Nguyen

A&P has asked a bankruptcy court judge to set aside two key union provisions — bumping rights and full severance pay — after reaching a negotiation impasse with labor groups, officials said in court documents filed late Tuesday.

The supermarket wants to completely eliminate bumping rights, saying the administrative burden and costs associated with allowing workers to do that are too high and undesirable to would-be buyers of its stores. Bumping rights allow employees who work the longest for the company — and at a store slated to close — to take the job of a less senior worker at a supermarket that will continue to operate.

The other sticking point is the amount of severance pay A&P will pay and when. The supermarket has proposed paying employees who will lose their jobs as part of the bankruptcy 25 percent of the severance they are entitled to on a "timely basis" with a maximum cap of $10 million for all workers. The rest of the severance would be paid later, depending on how much remains after the stores have been sold and what other A&P creditors are due, as part of settling the bankruptcy case.

Besides these two sticking points, both parties appear to have reached an agreement on most of their other issues. A hearing on the matter is scheduled for Monday in U.S. Bankruptcy Court in White Plains.

FULL story at link.



The A&P supermarket in Rye Brook.
(Photo: Ricky Flores/The Journal News)

Read more: http://www.lohud.com/story/news/2015/08/12/aandp-bankruptcy-union-contracts/31522937/

[dsc]

1. I can understand the severance pay thing

I don't like it but I do understand it. But the bump thing strikes me as out of line. It can't be that costly.

[Capt.Rocky300]

2. That's the way a seniority systems works.

[madville]

3. I hated working in a union environment where seniority

Carried so much weight. I worked as a helper and substitute operator on a huge printing press, I would act as lead operator when people went on vacation, etc.

An operator position opened up. Management had to give it to a forklift operator from the loading dock because he had worked for the company a few months longer than me. He had never touched this printing equipment, was completely clueless but the contract required it. I will say it was entertaining seeing the chaos it caused for a couple of weeks, until they offered to let him go back to the loading dock and drive his forklift again which he gladly accepted.

[Capt.Rocky300]

4. Funny how that works.....

When people are "junior" that hate the seniority system. But once they get some seniority they are just fine with it. I've been in both places. It just takes time to work out. It's not perfect but it does protect workers from favoritism and cronyism on the part of management. In the end, it worked, he went back to where he best belonged.

So, did you get the position when he vacated it?

[madville]

5. No, didn't stick around long enough for them to fill it

I applied for and accepted a similar operator position at a different company.

[silvershadow]

6. I haven't followed this...is it another Hostess? Is Mitt Romney and ilk waiting in the wings

to eviscerate the company for profit?