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Battles Heating Up Between Bankrupt A&P, Employees

Battle lines are being drawn between union workers and officials at A&P.
Battle lines are being drawn between union workers and officials at A&P. Photo Credit: Facebook/A&P

WESTCHESTER COUNTY, N.Y. -- A&P will lay off nearly 4,000 workers in New Jersey on Thanksgiving while union members fight to save their jobs in New York.

Those were among the most recent developments in the bankruptcy for the grocer, which is based in Montvale, N.J. A&P filed for bankruptcy in July and has 301 stores and 32,000 employees.

On Monday, A&P workers in New Jersey were told they may face layoffs as the company seeks to sell some stores and close others.  A story on NorthJersey.com said three potential buyers -- Acme, Key Food and Stop & Shop -- could purchase 118 stores, including 13 in Bergen and Passaic counties in New Jersey.

In New York, unions and store officials are trying to solve the dilemma of which workers might be retained. A "cost-neutral" clause has allows a senior worker to replace a less senior employee at another location, but at the cost of the replaced worker. A worker making $25 an hour could find his salary slashed to $10 per hour.

In addition, some of A&P's potential buyers have said they do not want to be forced to take on union employees.

U.S. Bankruptcy Court Judge Robert Drain has asked union and store officials to resolve the matter. He will issue a ruling if an agreement cannot be reached.

In July, A&P posted a list of stories it will be closing on its website. Click here for the complete list. Divisions of A&P include Waldbaum's, The Food Emporium, Pathmark and Super Fresh.

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