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July 21, 2015 at 02:05 AM
The Great Atlantic & Pacific Tea Company Inc. (A&P) and affiliates have given outsiders a peek into A&P benefits plans in a document included in a reorganization filing packet.
A&P and its affiliates submitted the document to the U.S. Bankruptcy Court for the Southern District of New York today in connection with the companies’ Chapter 11 reorganization filing.
See also: Bankruptcy judge OKs retiree health, pension cuts
A&P managers say they have access to $100 million in debtor-in-possession financing they can use to restructure the company.
The supermarket chain has asked for court permission, “but not direction,” to pay prepetition wages and reimbursable employee expenses, pay and honor employee and medical benefits and other benefits, and continue employee benefits programs.
A&P says the company needs to continue the benefits programs to maintain morale and enhance the company’s ability to keep key employees.
The company has a total of 28,467 employees, including 8,718 full-time employees and 19,719 part-time employees. Unions represent about 93 percent of the employees through 35 collective bargaining agreements.
Unions that have collective bargaining units with A&P include the United Food and Commercial Workers International Union; the Retail, Wholesale and Department Store Union; the 1199 National Health and Human Services Employees Union; and the United Pharmacists’ Guild.
A&P pays 27,891 of the employees weekly and 576 every two weeks. The company pays about $14 million in gross payroll every two weeks.
See also: Postal Service Rescue: Benefits Big Part of S. 1789
