MONTVALE, NJ - Following the announcement that nearly 10,000 A&P employees may be laid off come Thanksgiving, the company is now requesting that its Bankruptcy Court approve a $5 million earmark in “incentive pay” to keep some of its top, non-union employees from exiting the floundering retailer.

According to NorthJersey.com, A&P claims in its motion that essential non-union employees are "resigning at an escalating rate," and that it has already lost 54 of its highest ranking employees since it filed for bankruptcy July 19th. Reportedly, both the company’s Chief Operating Officer and the Director of Deli and Bakery have been among those who have already jumped ship.

Under the proposal, which still needs approval from U.S. Bankruptcy Court Judge Robert Drain, A&P would pay the proposed 495 executive and management employees an extra 4 to 63 percent of their base salary in exchange for them continuing their duties. According to news source Lohud, the employees would receive a round of incentive pay in October, ranging from $10,000 to $125,000 depending on the employee's position. Then, A&P says in their court filings, about half would lose their jobs while the other half would be eligible for a second round of incentive pay if they continue working through December.

In the filing, Christopher McGarry, Chief Restructuring Officer for A&P, continued by saying these key employees have had to do more work and are under "increased doubt and stress" and "are deeply concerned about their job security and possible implications of being terminated."

However, "there has not been material attrition of union associates," McGarry said, adding that union employees working in A&P stores are "incentivized" to continue working to make a good impression on potential future owners. According to Lohud, A&P says that union workers will stay because they have better benefits than non-union ones, and if they were to be included in the program, they would be eligible for "as low as a few hundred dollars.”

John Niccollai, President of UFCW Local 464A in Little Falls, a major representer of A&P workers, said that he didn't know yet what the official union response to the motion would be, but he said retention pay for executives was an area of difficulty during the company’s last bankruptcy filing in 2010. "That was one of the things that really, really upset" store workers who were asked to accept pay and benefits cuts during the previous bankruptcy proceeding, he said.

Niccollai told NorthJersey.com that he personally would prefer that the $5 million go for severance pay for store workers, or to protect full bumping rights, asking the company to, "put the money where it's going to help the people the most.” 

A hearing regarding the incentive plan is scheduled for September 11, which also is the deadline A&P set to receive sales bids for many of its stores.

A&P