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A&P workers call for judge to reject contract modifications

Union workers at A&P have asked federal bankruptcy judge Robert B. Drain to reject the retailer’s motion to modify their collective bargaining agreements.

Jon Springer, Executive Editor

August 14, 2015

2 Min Read
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Union workers at A&P have asked federal bankruptcy judge Robert B. Drain to reject the retailer’s motion to modify their collective bargaining agreements, saying the company by doing so would violate conditions of agreements Drain himself approved as part of A&P’s previous bankruptcy case.

A&P earlier this week filed an emergency motion seeking to strike union “bumping” clauses and slash severance obligations so as to effectively execute a “sale strategy” it called its best option for settling with creditors.

Unions in a petition filed late Thursday, however, said the request is in violation of Section 1113 of the bankruptcy code because of its provisions requiring that proposed modifications sought by an employer “must assure that all of the affected parties are treated fairly and equitably.”

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The petition contends that A&P failed to live up to its end of the bargain when unions granted concessions they said were worth more than $600 million to help A&P out of its 2010 bankruptcy. According to term sheets approved by Drain in that case, A&P as part of that deal agreed to reinvest in store renovations; to sell assets to employers in the event of a sale; and guarantee specific contract guarantees including seniority and severance pay.

Drain is expected to rule on the motion in a hearing Monday. An official objection to the motion had yet to be filed by Friday morning.

About the Author

Jon Springer

Executive Editor

Jon Springer is executive editor of Winsight Grocery Business with responsibility for leading its digital news team. Jon has more than 20 years of experience covering consumer business and retail in New York, including more than 14 years at the Retail/Financial desk at Supermarket News. His previous experience includes covering consumer markets for KPMG’s Insiders; the U.S. beverage industry for Beverage Spectrum; and he was a Senior Editor covering commercial real estate and retail for the International Council of Shopping Centers. Jon began his career as a sports reporter and features editor for the Cecil Whig, a daily newspaper in Elkton, Md. Jon is also the author of two books on baseball. He has a Bachelor of Arts degree in English-Journalism from the University of Delaware. He lives in Brooklyn, N.Y. with his family.

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