Union: Selling A&P stores may create jobs

As lawyers appeared in federal court for A&P's bankruptcy case, representatives of the supermarket, union and at least one prospective buyer visited stores across New York and New Jersey this week.

The meet-and-greet visits with Acme Markets, which are slated to purchase 20 stores in the Lower Hudson Valley, were partially intended to answer questions workers may have about the deal, United Food and Commercial Workers Local 464A said on its website. The local union, which has an office in Tarrytown, represents workers in parts of New York and New Jersey.

Union leaders said members are anxious about their future. The jobs of 28,500 A&P workers — represented by Local 464A and many more unions — are on the line as the supermarket winds through bankruptcy court. A&P has said it will close 25 stores as soon as possible and look to sell the rest of its roughly 300 stores. The chain has only lined up potential buyers for 120.

The Lower Hudson Valley is home to about 10 percent of A&P’s stores, which include Pathmark and Waldbaums.

In addition to finding as many buyers as possible, A&P also must work to modify the 35 separate collective bargaining agreements it has struck with its unions. A&P has said work-guarantee provisions and pension plan costs are too expensive and no company interested in buying any of the stores are willing to shoulder the associated expenses.

A&P said in bankruptcy documents if it and the unions can't agree on the changes, the company will ask the court to put aside all of the collective bargaining agreements because they jeopardize A&P's sales strategy.

John Niccollai, head of 464A, said he is optimistic a deal will be struck and the union will fight for workers' benefit rights. At the same time, allowing the bankruptcy plan to proceed will also be in everyone's best interest. Niccollai said after talking to some of the potential new owners, he is expecting more investments to be made at the stores that are bought, including the likely hiring of more workers. That would in turn create jobs for workers who are at stores slated for closure.

"We anticipate some of those locations are so good that'll create more jobs for our people," Niccollai said.

He likes to use the example of when Stop & Shop acquired Grand Union stores in 2001. There were 1,200 employees working in those stores back then, he said. Those same stores now employ 2,200 union workers, Niccollai said.

"You can grow your way out of a crisis," he said.

The unions also have been talking to its other employers about possibly buying some of the A&P stores, Niccollai said.

The bankruptcy process is being watched by many different parties, including real estate owners that lease to A&P stores. Harrison Shopping Center LLP has hired lawyers to keep tabs on the case though they don't expect to bring up any objections.

Key Foods put in a bid for the A&P at the Harrison shopping center, so it's likely the store will continue as a supermarket, lawyer Stephen Davis said.

"I do think the shopping center will be better off with a new operator," he said.

In addition to the impending sale, some municipal officials said they are looking to develop back-up plans should their local A&P not get sold or at least experience a delay in transitioning to new owners.

In Greenburgh, where the local A&P is slated to become an Acme Market, Supervisor Paul Feiner solicited feedback from residents on what to do should the supermarket be closed for a few months as the new owner prepares to re-open it under its new name.

"I'm just trying to plan it out so people could have a couple of months to plan," he said.

At the Pathmark in Nanuet, several shoppers said it was unfortunate that store might close or change hands.

Elaine Siebenaler has bought her groceries at Pathmark for decades, attracted by its central location and customer service.

“I’ve gotten to know the help in here,” the Nanuet woman said. “I have other places (to shop) but this one is the most convenient."

Craig Celander moved to West Nyack a year ago and has been coming to Pathmark ever since.

“The prices are pretty good,” he said. “I don’t know what’s going to replace it.”

Staff writer Khurram Saeed contributed to this report.