Schnucks: New warehouse deals to box transition woes

Schnuck Markets said it has reached an agreement with union workers at one of its warehouses, and with a new warehouse operator in another, as it seeks to put a rocky transition to a new supply chain structure behind it.

Penske Logistics has been engaged as the new operator of Schnucks’ 915,000-square-foot fresh food warehouse in Kinloch, Mo., which opened last summer. That facility was initially run by XPO Logistics but Schnucks terminated the deal with XPO earlier this year following a dispute.

The opening of the Kinloch facility triggered controversy when union jobs at an older Schnucks’ facility in Bridgeton, Mo. were impacted. Teamsters Local 688, which represented Bridgeton workers, subsequently boycotted Schnucks stores, but union officials called off the boycott and dropped unfair labor charges last week after its members ratified a new five-year contract with Schnucks in Bridgeton.

The union agreement, covering 102 workers in Bridgeton, calls for retirement buyouts for up to 50 workers as well as increases in company-paid healthcare benefit contributions, retiree healthcare contributions and pension contributions, the company said.

Todd Schnuck, chairman and CEO, said Penske was a “great cultural fit” to run the Kinloch facility. “We are excited to have Penske Logistics managing our newest warehouse facility and look forward to their ideas for providing exceptional service to our customers.”

The warehouses together serve 100 Schnucks stores in six states.