Union workers prepare for legal battle with A&P

[Omaha Steve]

Source: NJ.com

By Myles Ma

MONTVALE — The unions representing thousands of A&P workers are petitioning a bankruptcy judge to reject a motion by the company to modify its collective bargaining agreements with its workers.

A motion by the Great Atlantic and Pacific Tea Company, based in Montvale, would discount seniority in determining layoffs and reduce severance pay. The company filed for bankruptcy in July.

Several local chapters of the United Food and Commercial Workers and the Local Wholesale and Department Store unions are circulating a petition urging Judge Robert Drain of the U.S. Bankruptcy Court in White Plains, N.Y., to uphold the union contracts. The petition notes that the unions made concessions worth $625 million since the last time A&P filed for bankruptcy in 2010.

John T. Nicollai, president of UCFW Local 464A, which represents 7,200 A&P workers, said the union hopes to maintain seniority for its members as stores close. A&P, he said, wants to lay off workers at the stores that are closing, while the union wants the company to consider seniority.

FULL story at link. RELATED: A&P bankruptcy: Which 38 N.J. stores are Acme and Stop & Shop buying? http://www.nj.com/bergen/index.ssf/2015/07/ap_bankruptcy_acme_and_stop_shop_try_to_grab_38_nj.html


Unions want a bankruptcy judge to uphold their contract with A&P. (File Photo)



Read more: http://www.nj.com/bergen/index.ssf/2015/08/union_workers_prepare_for_legal_battle_with_ap.html

[Person 2713]

1. Unbelievable they could even think to break from seniority rules like that . A contract is just that

[SlipperySlope]

2. From what I've read A&P will soon be no more...

It sounds like the company isn't going to be restructured but is going to be liquidated. Soon the contract will be worth less than the paper it is printed on.

One of the things the Union is fighting for is that A&P should be required to sell stores to employees at preferential prices versus what they would go for in liquidation. At least that might save jobs, but I wonder how it will work. Would the Union itself end up owning stores?

[Person 2713]

4. Remaining stores should absorb seniority per the contract now IMO and hopefully the judge's

What happens when they go into total liquidation is another issue and contract may account for that scenario too
My 1st reply could have been misunderstood so replied again

[Sherman A1]

5. Precisely

I agree that things should proceed one step at a time.

[bucolic_frolic]

6. Bankruptcy Judges have a lot of power

They have either the survivability of the company

or the company's most senior creditors in mind in a liquidation

All else is secondary

It is rare these days for common shareholders of a company that reemerges
from bankruptcy to get anything

Ownership is cancelled and given to the new owners, sometimes shares are
cancelled and new shares created

Often bankruptcy is pre-packaged: just about everyone of any import agrees
this is the way it will be done and off it goes. Prepackaging saves time, money,
and legal costs.

I wouldn't buy or hold shares of a bankrupt company