MONTVALE, N.J. — Negotiations are scheduled through the weekend as A&P and its union workers race to reach some $125 million in annual savings underpinning the retailer’s potential buyout from bankruptcy.
As previously reported in SN, a hearing on Yucaipa Cos.’ proposed $490 million buyout of A&P is scheduled Monday at U.S. Bankruptcy Court in White Plains, N.Y. Union sources said they would fight to save jobs and wages but must also be prepared for the possibility their contracts are rejected under Chapter 11 if A&P’s savings goals — around $125 million annually, according to one source — are not met in time for Monday’s hearing.
“We are working tirelessly to save jobs and resist job cuts,” John T. Niccolai, president of Little Falls, N.J.-based United Food and Commercial Workers Local 464A said in a message posted Thursday on the union’s web site. Niccolai said company proposals would “completely gut the current contract,” and may result in wage cuts, loss of holiday and vacation entitlements and relinquished seniority benefits.
A spokeswoman for A&P said the company does not comment on ongoing contract negotiations.