Pathmark, A&P workers vote on union contracts containing concessions [Asbury Park Press, N.J.]

Nov. 30--Unions representing A&P and Pathmark workers, from check-out clerks to butchers, wrapped up voting Tuesday on new contracts that included concessions, such as small wage cuts and fewer days off, but preserved health care coverage, officials said.

"This is probably one of the most important contracts we ever had to vote on. For many people, it is not only a vote on a contract, it is a vote in terms of our future and our existence," said John T. Niccollai, president of Local 464A of the United Food & Commercial Workers.

The votes by 13 locals come nearly a month after the Great Atlantic & Pacific Tea Co., the supermarkets corporate parent, which filed Chapter 11 bankruptcy in December 2010, said it had a commitment from investors for $490 million in financing.

The money, from The Yucaipa Companies LLC, Mount Kellett Capital Management LP and investment funds managed by Goldman Sachs Asset Management, L.P., would enable the company to exit bankruptcy early next year if approved by a bankruptcy court judge, the company said.

"We are concerned if this vote does not pass, the company may ultimately lose its financing and go out of business," Niccollai said.

Another option in the event of a no vote: The company could ask a judge to dissolve the contract and impose its own terms, he said.

The contracts are different for each local so each has its own terms, Niccollai said.

The one voted on by Local 464A, which represents 8,500 A&P workers and Pathmark employees in the meat, deli and seafood departments, includes a wage cut of approximately 3 percent, and fewer days off, Niccollai said.

But importantly, it did not change employees' health and pension benefits, Niccollai said. Currently, the workers in his local do not contribute towards heath insurance premiums.

The deal also kept seniority and time-and-a-half pay on Sundays, he added.

"We have a very astute membership," said Niccollai.

The union still had voting scheduled at stores on Tuesday evening.

"They know this company is in a position where it needs to be helped or it will cease to exist," Niccollai said.

Local 1262, which represents Pathmark workers, approved the contract, said Harvey Whille, the local's president.

The preservation of health and pension benefits are important to workers, Whille said.

"It is very difficult when you have to accept certain concessions," said Whille. "We are happy to say that during these challenging times, we were able to sustain the core issues that are so important to our members."

When it filed for bankruptcy, executives at Great Atlantic & Pacific Tea, the Montvale-based parent company of A&P, Pathmark, Superfresh and Waldbaum's, said the company had a heavy debt burden, it continued to pay rent for closed stores, and it had an unfavorable contract with its main wholesaler.

In June, the company said it reached a new money-saving deal with C&S Wholesale Grocers, which is expected to save the company more than $50 million a year.

Earlier this year, the company closed 32 stores, including a Pathmark in Middletown and an A&P in Barnegat. Others included an A&P in Manville and Pathmark stores in South Plainfield, Long Hill Township, Hillsborough and Hanover Township.

David P. Willis: 732-643-4039; dwillis@njpressmedia.com; twitter.com/dpwillis732; facebook.com/dpwillis732

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