Marsh workers weigh super shift [The Indianapolis Star]

Sept. 12--When Florida-based Sun Capital Partners purchased the troubled Marsh Supermarkets chain in 2006, it invested millions of dollars to remodel stores and made them competitive in a difficult economy.

It also reduced employee hours, overtime pay and pay raises, some workers say.

And now, a once-unfathomable event in the Marsh culture will take place Friday: an election to determine whether workers at the Marsh store at 1815 Albany St. in Beech Grove want union representation.

"Things have changed here since Marsh was bought by Sun Capital," April Stum, a 22-year Marsh employee, said in a written statement from the United Food and Commercial Workers union. "It's time workers stood together to defend our interests and our communities."

This is not an unusual move in the grocery business, which is more unionized than many U.S. industries. But it is for Marsh, which has operated for 79 years without a single union store.

Union officials say the effort stems from a cultural shift brought on after Sun took over four years ago. Before that time, the family-run company was hemorrhaging money and was riven by leadership changes. Same-store sales had dipped for three straight years, and the stock price had plummeted. But employees who spoke with The Indianapolis Star said they were treated like family and knew where they stood.

Today, their hours have been cut, and they've been given no pay raises.

"These are longtime Marsh workers who were even surprised themselves that they would talk to a union representative," said Anthony Tracy of the United Food and Commercial Workers, whose Indianapolis Local 700 represents 13,000 workers in Indiana. "These people were really hurting."

For Marsh, the vote has sweeping implications. Although it would apply only to the 44 workers at the Beech Grove store, it could open the way for similar votes at others of the 100 stores in Indiana and Ohio. Higher wages could follow, driving up the company's costs and eroding a financial advantage it holds over competitor Kroger.

At Kroger's central division in Indiana, a union represents 87 percent of its 5,956 hourly employees. And Kroger pays higher wages than Marsh.

At Marsh stores, workers' pay ranges from $7.25 to $13 per hour. Kroger pays as high as $16.60 to department managers with enough experience, according to union records.

"Normally, organizing a union means higher wages. That's the rationale for it," said William Rieber, a professor of economics at Butler University. "That's why workers want it and the company may not."

Higher costs also could complicate an eventual sale of Marsh. Sun Capital -- which typically turns around troubled companies and then sells them at a profit -- had tried to sell Marsh for the past year but ended its push last month after it found no takers. It was marketing the grocer for well over $100 million. Sun paid $88 million when it bought the company four years ago and assumed $237 million in debt.

Experts say Marsh would be a tough sell, considering where it falls in market share -- fourth in Indianapolis behind Kroger (32.5 percent), Walmart Supercenter (22.1 percent) and Meijer (13.9 percent). About 12.9 percent of Indianapolis shoppers say they buy at Marsh.

Marsh says it doesn't need a union serving as a middleman between management and employees.

"Our goal is to serve our customers and to work together to achieve our goals for associates and the company," Dave Redden, senior vice president of human resources for Marsh, said in an e-mail. "We believe everyone is better served when we communicate directly with each other, rather than have a third party come between associates and their managers."

When asked whether workers' hours have been cut since Sun Capital took over, Redden said hours are evaluated on a regular basis and revised based on business demands.

Hours for each department in each store are based on a number of factors, including sales volume, product mix and engineered labor standards. New technology and work methods may also change the labor required, he said.

"The management of labor has always been dynamic in this business because of its impact on the desired customer experience and operational changes," he said. "This was certainly true before and after the sale of the company to Sun Capital."

Redden credits Marsh's success to Sun Capital.

"Marsh believes the steps it has taken have enhanced employee job security and reflect our commitment to providing good jobs in a competitive industry," he said.

Marsh believes workers will vote "no" on election day.

"Store associates have chosen for over 79 years not to be represented by a union," Redden said in his e-mail to The Star. "We keep an open dialogue with our associates, inform them of relevant developments, and address specific issues when they arise. We believe that our associates will once again not see any benefit in being unionized. We do not believe a union is in the best long-term interest of our associates or the company."

Beech Grove workers say they believe they have the majority needed to win union representation Friday.

"I can guarantee you that at every store in Indianapolis, all eyes are on that store," said the United Food and Commercial Workers' Tracy. "And Marsh understands this as well. That is why they are pulling out all the stops to prevent it."

Call Star reporter Dana Hunsinger at (317) 444-6012.

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