A&P Ruling on Severance Pay

On Friday a United States Judge released his ruling on the lawsuit between A&P supermarkets and the employees at risk of losing their jobs when the company closes. A&P officially filed for bankruptcy in July, and are looking to sell nearly 270 stores and close the remaining 25. Employees filed a lawsuit against the company after raising concerns that they would lose their jobs without decent notice, and questioned the process of bumping rights. Judge Robert Drain ruled that at the last court hearing that the company’s proposed incentive plan will be approved only if $1.1 million out of the $5 million program is set aside to pay severance for those workers. He also suggested that the company use money from a $6 million trust being used to fund benefits for senior management positions to help employees losing their jobs.

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