Bankruptcy Judge Encourages Purchasers in Hiring Workers from A&P

by San Antonio Attorney

Union lawyers coerced the potential buyer of the Hastings-on-Hudson A&P supermarket to make a legal statement in the U.S. Bankruptcy Court hearing on Monday.  There has been a concern that there might be a ploy for a food entrepreneur finding a loophole when it came to union rules.

Evangelos Gerasimou of Shanghai Enterprises explained his group’s interest in the store though he expressed no interest in maintaining the grocery business in the Hastings location.  Therefore, Shanghai Enterprises will not be required to recruit the former employees.  Gerasimou’s decision made the union lawyers suspicious of his intentions to purchase the property since he may have the plan to utilize the store for a rent space instead.

Bankruptcy Court Judge Robert Drain also gave notice to the two prospective buyers of five A&P supermarkets in Long Island who wanted to be exempt from obligations especially in hiring A&P workers.

The two buyers, Best Yet Market and H Mart, were given an ultimatum until Tuesday to reconsider or else the court will withhold approval of the sale.

Initially, labor leaders inquired that stores should only be sold to supermarket operators with union contracts and emphasized on “successor clauses” especially in collective bargaining conformity with A&P.

Last Monday, the union lawyers suggested that the potential buyers of the former chain of A&P supermarkets who opted to continue operations as a grocery business should agree to use reasonable, good faith, best efforts to hire the previous employees.  The previous employees hired will consist 25% of the new workforce in the grocery store under new management.  The workers can be hired from any union bargaining unit but they would also need to meet the qualifications needed for the job.  This would include the educational attainment and work experience.

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