Ocean City Today
PAGE 16
NOVEMBER 27, 2015
Benefits major part of distress, A&P says Continued from Page 15 tracts that had been signed to A&P stores. “They changed the contracts under Superfresh so no one could get the benefits and pay we had anymore,” Knowles said. The United Food and Commercial Workers represented employees at the Ocean City locations, and roughly 72 percent of A&P employees overall. Only a handful of employees are still in the first tier of pay and benefits for those hired prior to 1989. After A&P’s first Chapter 11 reorganization – the company filed for bankruptcy
five years ago, and was saved by a cash infusion from outside investors – many long-time employees were offered a buyout option, Knowles said, where they would receive a lump $35,000 to be laid off and re-hired under a lower pay and benefits scale. “We had better benefits than Delmarva Power, than the phone company,” Knowles said. “Nobody wanted to give that up, not after working all those years.” Knowles began working here in hotels and bars, something that, for a young person today, is likely far more lucrative than working in a super-
market. But back when A&P was making big money and Ocean City’s service industry was not as far developed, it made sense. “I started at A&P because I didn’t want to be a bartender all my life and have nothing to fall back on,” Knowles said. “For nearly 40 years, I’ve never had to pay out of my paycheck for myself, my husband, or my daughter. Our medical, vision, dental, everything was taken care of.” Of course, paying for pension and health benefits – including spousal and dependent coverage – without taking part of it out of employee wages isn’t cheap for the company. According to its initial bankruptcy filing, A&P pays approximately $10.4 million per month to cover union-negotiated health and welfare benefits. Further, the company maintains mul-
tiple pension plans, some of which are outside trusts that serve multiple companies, and some of which are single-employer funds that A&P manages itself. According to the filing, A&P paid $31.4 million last year into 12 multiemployer funds, as well as another $14.6 million into three single-source funds for different A&P divisions. This isn’t as bad as it could be, however. In the 2010 bankruptcy, the UFCW made concessions with a purported value of $600 million, over the lifetime of the employee base, in order to keep A&P solvent. “The terrible reality is that based on bankruptcy laws, many other debt claims take priority, and will likely be paid out before severance and other benefits,” said Casey Hoag of the UFCW.
arpet.
from Mike’s C
Come on in y Sales event going on now! for our Holida
GREAT GIFTS, GAMES, PUZZLES & TOYS!
Calico Critter Fun Day
FLOOR COVERINGS
Friday, November 27th ~11am–2pm in Fenwick Saturday, November 28th ~11am–2pm in Bethany • Enjoy a snack & craf t with Mrs. Hop Scotch Rabbit • Bring your camera to take pictures with Mrs. Hop Scotch Rabbit ! • Many fun activities & prizes!
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Mike’s
many products to choose from!
CARPET CONNECTION
“We Measure Each Job With A Golden Rule”
Monday-Friday • 9am-5pm • Saturday • 9am-4pm Closed Sundays
Ocean Bay Plaza • Fenwick Island, DE • 1-800-298-9470 • 302-537-1899 www.mikescarpetconnection.com
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$20 OFF Secret Island Playhouse (Reg. $74.95) Sale Through November 30 $10 OFF Cherry Cruiser (Reg. $34.95) $10 OFF Family 7 Seater (Reg. $39.95)
Mingle and Jingle with Elsa and the Elf! Saturday, December 5 • 3-6pm in Bethany
Come meet and take photos with Elsa from “Frozen” and the “Elf on the Shelf” Craft-Giveaways – Drawing for a Frozen Prize Package
@6pm watch Elsa use her Magic the light the town Christmas Tree!
Fenwick Island
Bethany Beach
302-539-TOYS (8697) On the boardwalk in the Blue Surf Condominiums & Shops
302-581-0241
100 Coastal Hwy. (next to Fenwick Crabhouse)
www.tidepooltoys.com Both Stores Open Every Day 10am–5pm