"We Will Not Let Shoppers Dump Financial Problems On Our Members' Backs" UFCW 400's McNutt Says

(Metropolitan Washington Council, AFL-CIO)UFCW 400 members at Shoppers Food and Pharmacy are hoping it’s not déjà vu all over again. Shoppers’ parent company Supervalu is struggling financially and this week summarily fired the company’s CEO, according to an In These Times report. In a “worst-case scenario,” ITT noted, Supervalu could follow in the path of New Jersey-based grocery chain A&P, which filed for bankruptcy in 2010 and has closed over 100 stores since, forcing UFCW locals – which represent  84,000 workers -- into major economic concessions. “We will not let Shoppers dump its financial problems on our members’ backs," Local 400 President Tom McNutt (at left in photo) said at the outset of local contract talks covering 2,500 area workers earlier this year ("Shoppers Workers Ratify Strong New Contract," UC 7/12/2012). "The solution to the company’s problems… lies exclusively in the executive suite.” McNutt said the abrupt dismissal of Supervalu boss Craig Herkert “was long overdue,” calling Herkert “part of the problem,” and suggesting that “it could be a good sign” for a turnaround at the company that Herkert will be replaced. McNutt told ITT that it was disturbing that Supervalu's recent history looks so similar to the experience of bankrupt A&P which also acquired another large grocery company and loaded up on debt. “The heavy debt made the stock price go down,” said McNutt, “so you then had chaos among the executives as they were under pressure to deal with the stock price. It starts a downward spiral.” McNutt is not predicting that Supervalu will go under, but says “We’re watching daily what is happening and hoping for the best."- photo of Local 400 ratification of Shoppers contract by Bill Burke/Page One