Union Leadership has already begun spinning the sellout of there members... check out all the pre meeting/vote comments filtering out from Union big wigs,, no matter how they spin it, workers lose, big investors win and once the new contacts are approved ( via secret vote of course) A&P / PM workers will be doing the same works as their comp peers for a lot less.... If this is a union friendly deal, wow... who needs friends like this.... PS 0 funny how there is this big 'gag" order on the details, what are they afraid of ??????????????
Why don't you just buy the A & P out using pension money. Mr. Burkle recently bought 20% of the Amalgamated Bank that is the union's only union owned bank, and they have $30 billion dollars in pension money that they can probably lend back to union business at a very favorable rate since it is being lent to the union membership.
You could double the Yucaipa deal and offer a billion dollars or so. Use this to buy out all of the existing ownership at fair rates, and retire any debt as possible. This works out to $25,000.00/per employee which as I understand would be the same as about two years of the 20% wage concessions that are being asked for by Yucaipa in order to buy the company and take it private. I would hope that there is more than that in the pension fund for these individual employees that may be used to do this. Seems like a really sound idea, and I have seen employee owned companies do very well in the past.
If you really wanted to do it right you would take a big enough chunk of money and put the whole operation on it feet without debt. This would cost more, and the figures are available in the latest financial statements that were just issued shows a total liabilities and stock holders debt of $2.3 billion. So if the per employee ante is upped to around $58,000.00, the company would be owned outright with no stockholders and no current debt. Basically if the pension of each employee kicked an amount that equals 52 months of what Yucaipa is currently asking for as the wage concession, the union employees could take ownership of the company completely.
I would not be surprised if Mr. Burkle wouldn't help facilitate such a bold move, as it achieves his goals, and leaves behind a viable, union run company.
In this way any success or failure would be the employees, of course, but who knows the operations and clientele any better than those same employees, so who better to place the best management and shepherd the operation, and rebuild the company into the strongest going concern?
Good idea...in theory. The reality is there is a HUGE percentage of the employees who think WHOMEVER is running the show doesn't know what they're doing...and petty jealosy will take over. And most people will absolutely believe that fellow unionites will automatically give the rank and file a big raise, since they've been screwed for so long. You can't get most these people to agree what time it is, much less who should run the company.
Ron Burkle is a Very good friend to our former prez Bill Clinton. The democratic party is the Unions best friend. All union members are advised to vote for the union friendly Democratic party. In exchange for votes the union gets political power. That power is often used for the benefit of the international as well as the individual union shops. Not for the members. However union members must understand that the union is a necessary evil. Without the union Pathmark would hire illegal aliens. Workers would have no health care. No vacation pay. No rights in the workplace. If you work for any of A&P 's banners you better see the writing on the walll There is nothing good in the future
I cringe every time I read that Ron Burkle is a friend of the union worker. In my opinion, he is a union member's worst nightmare. For some reason union leadership seems to like this billionaire very much. I wonder why?