Bankruptcy Court Ruling Helps Anti-Union Grocer Slash Benefits and Pensions for 1,100 Workers

(In These Times) In a new version of the old ploy of manipulating federal bankruptcy courts to bludgeon unions into economic concessions or givebacks, the nation’s largest grocery wholesaler used sped-up court procedures to make a quick buy of one of its regional competitors last month—and, in the process, slash the pensions and benefits of 1,100 truck drivers and warehouse workers.

Members of the International Brotherhood of Teamsters in Pennsylvania, New York and New Jersey are angry over the loss and apprehensive about their futures, union leaders say. Their new employer, C&S Wholesale Grocers, has a reputation of buying up unionized companies, shifting the work of handling retail food products to non-union distribution centers and then getting rid of the union members altogether.

“The (members feel) they got screwed. … They are dissatisfied and angry,” says Bill Shappell, President of Teamsters Local 429 in Wyomissing, Pennsylvania, which represents about 450 warehouse workers, truck drivers and mechanics who have been affected.

Union members could see trouble ahead when their former employer, Associated Wholesalers Inc. (AWI), filed a Chapter 11 petition in federal bankruptcy court on September 9. Included in the court filing was an announcement that AWI and its main subsidiary White Rose Inc. didn’t want to reorganize its business under court protection, as is normal in most Chapter 11 cases, but rather wanted a quick sale to C&S. An auction was ordered, but only one other bidder came forward. The court approved the purchase by C&S on October 29. ................(more)

The complete piece is at: http://inthesetimes.com/working/entry/17414/bankruptcy_court_ruling_helps_anti_union_grocer_slash_benefits_and_pensions