Supermarket battle in Boston

[dmcowen674]

Summer of 2014

http://www.fool.com/investing/general/2014/08/08/the-market-basket-strike-really-matters.aspx

The Market Basket Strike Really Matters

8-8-2014

Something big's going on in the Boston retail landscape. Non-unionized, company-president-loving workers have launched a weeks-long strike. It has seriously shut down business as usual at The Market Basket. And now rumor has it that grocer Hannaford Bros. may bid for the company.

There's a strikingly personal story here, but there's also a big-picture one. In the last year, there have been many high-profile strikes aimed at management at retailers like McDonald's (NYSE: MCD ) . That's why this one is amazing: These are non-unionized grocery employees demanding that their ousted president return.

In many ways, positive businesses can make all of America happy. When businesses take care of stakeholders, success is in the cards. Things seemed to be going well at The Market Basket under the former leader, but now the picture has fractured.

The sad situation in Boston was set in motion by a longtime family rift. Former president Arthur T. Demoulas – affectionately known as Artie T. -- was pushed out of his role in June. The board of directors, which is controlled by his cousin, Arthur S. Demoulas, gave him the boot and put James Gooch, the former CEO of RadioShack (NYSE: RSH ) , and Felicia Thornton in place as co-CEOs.

Under Artie T.'s design, Market Basket employees receive:

• A profit sharing program
• College scholarships
• Internal promotions
• Minimum wage is $12 per hour vs. Massachusetts' $8 per hour minimum wage

The current management at Market Basket has accused Artie T. of exhibiting financially profligate ways, but his stewardship has produced a profitable business, not a money-losing one -- a real achievement in the grocery industry. Although Market Basket has less than 100 stores, it generates billions in sales, turns a profit, and obviously hasn't taken its financial success out of its employees' hides.

================================================================================
8-27-2014

Looks like the people won

Yup I just caught the end of a local news report. Artie T will be back immediately, he will be the decision maker, 1.5 Billion will take several months to sort out. Current two CEOs keep positions in title only until Artie owns the whole operation.
I wonder how much the radio shack loser will earn?
Almost forgot all separated workers are welcome back.

 

[dmcowen674]

Surprised no one in Boston posted this sooner

This battle really shows the labor rift happening in America and getting worse everyday.

Just another cog in the wheel slowly spinning the country towards the tipping point of full all out revolution.

 

[Hugo Drax]

Sorry but there is no revolution happening.

 

[Strk]

It would be nice if this ends well. MB's prices are usually the lowest. And yes, they are lower than Walmart. Their stores get ridiculously crowded though.

 

[Matt1970]

Sorry but there is no revolution happening.

They had their revolution.

 

[highland145]

2nd post.

 

[Londo_Jowo]

Revolution














LMAO!!!!

 

[ivwshane]

The good news is that the community itself also seems to be active and essentially boycotting the stores as well with the intention to return was the old owner comes back.

 

[dmcowen674]

The good news is that the community itself also seems to be active and essentially boycotting the stores as well with the intention to return was the old owner comes back.

Latest news I saw on TV though is that they have fired all the employees.

 

[Dulanic]

I miss market basket since I moved away from MA. Good prices and happy employees, rare combination lately.

 

[ivwshane]

Latest news I saw on TV though is that they have fired all the employees.

Wow...that's pretty much the end of that company.

 

[Capt Caveman]

Surprised no one in Boston posted this sooner

This battle really shows the labor rift happening in America and getting worse everyday.

Just another cog in the wheel slowly spinning the country towards the tipping point of full all out revolution.

Nobody from Boston posted about it b/c it's a family business dispute and a moron like you takes something that they don't know anything about and spins it like a retard.

 

[Capt Caveman]

Latest news I saw on TV though is that they have fired all the employees.

And you would be incorrect. Stop posting retard. If you want the latest news, go to boston.com

 

[preCRT]

The Market Basket saga has been page one news continuously at boston.com

Hope this gets settled soon. Lower rank employees [esp the part-timers] and vendors are suffering. As a customer, I'll stop my boycott once Artie T and the employees get back in control. I miss those great MB deals.

 

[dmcowen674]

And you would be incorrect. Stop posting retard. If you want the latest news, go to boston.com

What personally do you have in stake with this Company?

Zero hours sounds pretty much the same as laid off. The unemployment office agrees so it is you that is the retard.

Original headline said all part timers were laid off and then they issued an update

8-7-2014

http://www.lowellsun.com/breakingnews/ci_26292375/update-all-market-basket-part-timers-laid-off

<h1 id="articleTitle" class="articleTitle">All Market Basket Part Timers Laid off

UPDATE: Market Basket CEO tells store directors to cease layoffs

</h1>Thousands of part-time Market Basket employees were told by store managers Thursday morning that they will be laid off effective Sunday, -- but CEO Felicia Thornton is now telling store managers to keep their employees.

Managers told The Sun on Wednesday that sales are so thin that current store revenue won't cover salaried managers, let alone part-timers. Scott Ivers, manager of the Fletcher Street store in Lowell, laid off 180 part-time employees, while the Wood Street store has asked part-timers to volunteer to go home. Ivers estimates 1,000 workers will be let go among Lowell's three stores.


"We have a payroll figure that we need to meet for each hour any employee works in the building. A certain number of dollars needs to go through the registers," Ivers said on Thursday morning. "With no customers coming in, we've had to cut back all our help.



As of Sunday morning, there will be no more part-timers scheduled.

We've laid them all off."

​

​

 

[trenchfoot]

Those employees could see the writing on the wall; as in Walmart clone where existing salaries and wages will see a big shift from the bottom to the top.

Typical Corporatist style "profit sharing".

 

[ch33zw1z]

Thousands of part-time Market Basket employees were told by store managers Thursday morning that they will be laid off effective Sunday, -- but CEO Felicia Thornton is now telling store managers to keep their employees.

Managers told The Sun on Wednesday that sales are so thin that current store revenue won't cover salaried managers, let alone part-timers. Scott Ivers, manager of the Fletcher Street store in Lowell, laid off 180 part-time employees, while the Wood Street store has asked part-timers to volunteer to go home. Ivers estimates 1,000 workers will be let go among Lowell's three stores.

"We have a payroll figure that we need to meet for each hour any employee works in the building. A certain number of dollars needs to go through the registers," Ivers said on Thursday morning. "With no customers coming in, we've had to cut back all our help.

As of Sunday morning, there will be no more part-timers scheduled.

We've laid them all off."
​

Guess they weren't expecting people to actually vote with their wallets. GJ citizens.​

 

[Thebobo]

Guess they weren't expecting people to actually vote with their wallets. GJ citizens.

Yea Boston ain't so "boston strong"

 

[Strk]

Nobody from Boston posted about it b/c it's a family business dispute and a moron like you takes something that they don't know anything about and spins it like a retard.

It is a result of a decision from the family dispute, but the walkout was employee driven. And that is because employees feel Arthur S. doesn't have any of their interests in mind. Like the bonuses the employees get, Arthur S. kept trying to end those. These bonuses are worth thousands per person.

 

[Ancalagon44]

I'm actually amazed and pleasantly surprised to see this happen.

Really brave of the employees - all of them need the money, and yet they stuck to their guns. With consumers siding with them, the company is pretty much done for. It will now be worth a fraction of its former value, meaning Arthur T should be able to pick it up for a song.

I would be interested to know why the board ousted Arthur T in the first place. And, was there any indication that Arthur S was going to cut back on benefits?

I love it when a plan comes together like this.

EDIT:

Screwing each other over for money apparently runs in the family

In 1916, Greek immigrants Athanasios ("Arthur") and Efrosini Demoulas opened a grocery store in Lowell, Massachusetts, specializing in fresh lamb. In 1954, they sold their store to two of their six children, the brothers Telemachus ("Mike") and George Demoulas. Within 15 years, the two brothers had transformed their parents' "mom and pop"-style store into a more modern supermarket chain consisting of 15 stores.



The last use of the name DeMoulas on a facade was on this former store in Salem, NH.
George Demoulas died of a heart attack in 1971 while vacationing in Greece, making Mike the sole head of the Demoulas supermarket chain. Although each brother had promised to provide for the other's family in the event of his death, a lawsuit filed in 1990 by the heirs of George Demoulas claimed that Mike had defrauded them out of all but 8% of company stock by moving assets into shell companies, such as 'Market Basket Inc.' and 'Seabrook Sales Inc.' and claiming that these were separate companies from DeMoulas itself. The ensuing legal cases threatened to require the sale of the chain, most likely to Royal Ahold's Stop & Shop. In 1994, Judge Maria Lopez ruled that Mike Demoulas had defrauded George's family out of nearly $500 million, transferring 51% of Demoulas' stock to George's family.[3]

 

[Thump553]

NPR piece on this story:

http://www.npr.org/2014/07/30/336570037/grocery-chain-workers-want-their-ceo-back

Truly an amazing story-just when you think the employee movement is absolutely dead and buried in the USA there is a bona fide groundswell. Nice to see that the so-called tea party movement hasn't fooled everyone.

I especially like the part about customers taping their receipts from other stores to Marketplace's windows.

 

[nehalem256]

It is a result of a decision from the family dispute, but the walkout was employee driven. And that is because employees feel Arthur S. doesn't have any of their interests in mind. Like the bonuses the employees get, Arthur S. kept trying to end those. These bonuses are worth thousands per person.

The sad situation in Boston was set in motion by a longtime family rift. Former president Arthur T. Demoulas – affectionately known as Artie T. -- was pushed out of his role in June. The board of directors, which is controlled by his cousin, Arthur S. Demoulas, gave him the boot and put James Gooch, the former CEO of RadioShack (NYSE: RSH ) , and Felicia Thornton in place as co-CEOs.
.

James "Jim" Gooch, whom Day hired as Chief Financial Officer in 2006, succeeded Day as CEO of the company in 2011 and served for 16 months. He "agreed to step down" as CEO following a 73% plunge in the price of the stock

http://en.wikipedia.org/wiki/RadioShack

I am not sure how hiring the former CFO/CEO if Radioshack could be in anyone's best interests

 

[Capt Caveman]

What personally do you have in stake with this Company?

Zero hours sounds pretty much the same as laid off. The unemployment office agrees so it is you that is the retard.

Original headline said all part timers were laid off and then they issued an update

8-7-2014

http://www.lowellsun.com/breakingnews/ci_26292375/update-all-market-basket-part-timers-laid-off

<h1 id="articleTitle" class="articleTitle">All Market Basket Part Timers Laid off

UPDATE: Market Basket CEO tells store directors to cease layoffs

</h1>Thousands of part-time Market Basket employees were told by store managers Thursday morning that they will be laid off effective Sunday, -- but CEO Felicia Thornton is now telling store managers to keep their employees.

Managers told The Sun on Wednesday that sales are so thin that current store revenue won't cover salaried managers, let alone part-timers. Scott Ivers, manager of the Fletcher Street store in Lowell, laid off 180 part-time employees, while the Wood Street store has asked part-timers to volunteer to go home. Ivers estimates 1,000 workers will be let go among Lowell's three stores.


"We have a payroll figure that we need to meet for each hour any employee works in the building. A certain number of dollars needs to go through the registers," Ivers said on Thursday morning. "With no customers coming in, we've had to cut back all our help.



As of Sunday morning, there will be no more part-timers scheduled.

We've laid them all off."

​

​

Stop posting retard.

You post this:

Latest news I saw on TV though is that they have fired all the employees.

Now, post part-time employees are being laid-off. Guess what, not all the employees are part-time. And now you post an article from five days ago that the layoffs were ceased.

Again, if you're going to follow the story, follow the current time of events from boston.com and stop cherry picking shit/lying to satisfy your retarded agenda.

 

[hal2kilo]

I think it's fun, when certain capitalists get the reality check, that, in fact, the world isn't your oyster.

 

[Zorba]

I guess I don't know labor laws well enough, but would this be considered a protected labor action?