Judge Urges Higher Severance For A&P Workers

WHITE PLAINS, N.Y. -- A&P workers should receive higher severance payments than what is being offered by the company, a White Plains judge ruled on Tuesday.

A judge in White Plains urged higher severance payments for A&P workers who will be laid off as part of the business' bankruptcy.
Photo Credit: *File photo*

Tom Renner

09/01/2015 4:30 p.m.

According to a story on NorthJersey.com, Judge Robert Drain said A&P should increase payments to 52 percent of the amount owed. A&P proposed 25 percent.

The ruling affects the 25 stores that are scheduled to close in September and October. Drain also set a deadline for Thursday for A&P and unions to set a plan for bumping senior workers by less experienced employees.

The judge’s ruling Tuesday only covers the 25 stores slated to be closed immediately.

In August, Drain urged unions and A&P to reach a settlement to expedite sales of the company’s stores. A&P asked for changes in some provisions of the union contract because potential buyers of the business are interested only if they are clear of contractual obligations to union workers. Union officials say A&P made promises to the unions in a previous bankruptcy and is now trying to break those agreements.

A&P employs nearly 28,000 union workers in 296 stores covering six states. It filed for Chapter 11 bankruptcy protection in July and three chains -- Stop & Shop, Acme and Key Food — are prepared to purchase 118 of its stores.

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