Are unions to blame for the bankruptcy of A and P groceries?

From Yahoo News.

Excerpt:

The fall into bankruptcy court by the Great Atlantic & Pacific Tea Co. is the culmination of years of decline but creates an opportunity for its competitors and could mean further consolidation in the supermarket industry.

The nation’s oldest grocer filed for Chapter 11 bankruptcy protection Sunday after years of struggling with enormous debt, falling sales and rising competition from low-priced peers.

[…]A&P, like most grocers, is struggling with the weak economy, reduced spending by consumers and intense competition. The company said aggressive competition from nontraditional food retailers like warehouse clubs, discount chains such as Wal-Mart Stores Inc., and dollar stores have compounded the problem.

[…]It is also struggling with pension costs, lease costs for store locations it has closed, and a contract with C&S Wholesale Grocers Inc., which provides the majority of its inventory, which it has been unable to negotiate down to lower costs.

[…]A&P also has one of the most heavily unionized work forces in the business, with 95 percent of its workers covered under collective bargaining agreements. It said in its filing it would seek to work with the unions to lower those costs.

I wonder why Wal-mart is doing so well compared to A&P. Oh I know – Wal-mart isn’t 95% unionized. In fact, Wal-mart opposes unions, because employers should not be forced to pay dues to Democrat union bosses in order to keep what they earn by the sweat of their own brow.

One thought on “Are unions to blame for the bankruptcy of A and P groceries?”

  1. I am disturbed here because based on what I am seeing on your sites those who are working in service or manufacturing jobs are mere servants to the Rich. They should be payed subsistance wages, thats all and nothing more. That means no Pension, no retirement, no medical coverage. When they are no longer usefull to the workforce, then they are cast out and left to fend for themselves or die. It also seems that those who advocate this concept, feel that anyone, or organization opposing this point of view is dangerious, contemptable, Liberal, or communist. That means they are bad people because they just want to have a better life. I’ve often wondered just how many people who have, as they say, seen the light, used to be union members and now enjoy pensions, and Medical programs that assure their care. Sounds like the greed factor to me.

    The whole thing is based on Survival of the fittest. Them that has gets, them that don’t get nothing. I am not comforable with that. Welcome to the New America!

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