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A&P Judge Approves Union Contract Changes

Submitted by jhartgen@abi.org on

Bankruptcy Judge Robert Drain yesterday said Great Atlantic & Pacific Tea Co. could make changes to its collective-bargaining agreements with union employees as the supermarket chain braces for its first swath of store closings, but he noted that some of the requested provisions must be changed to be more employee-friendly, Dow Jones Daily Bankruptcy Review reported today. Judge Drain approved the company's request to avoid so-called bumping provisions that allow employees in closing stores to take jobs of more junior employees at other locations, but he ordered A&P to increase the amount of severance money it immediately pays to workers being let go. An A&P lawyer said that the company had reached a compromise on the bumping provisions with the United Food and Commercial Workers International Local 1776, which represents 1,078 A&P employees, but not ones representing the company's other 27,400 or so workers. That deal allows a one-time move where senior workers in some of the 25 closing stores can take the jobs of junior employees at locations that remain open. The store closures are set to begin later this week.