Save Mart

[veteran+]

https://news.yahoo.com/save-mart-retire ... WeWjVKSdQB



Private Equity doing its thing!

[Romr123]

Hundreds of millions...not hardly. Mystified why they didn't just buy an annuity for each of them and call it a day (other than private equity fuckery). GM had a situation where they were imprecise in some of their language in their Summary Plan Description about post-retirement Medicare health care with a group of employees.

They were threatened with a lawsuit and quickly settled with a $100/month offer after Medicare eligibility, which is in effect an annuity (with Prudential) which they funded (e.g. paid a lump sum) and will give (me) $100/month in 5 1/2 years (I can cash it in, convert it to one that will joint and survivor, etc etc).

[storewanderer]

This... was bad. Really bad. And, THIS is why you need something that keeps your post-employment benefits outside your employer to ensure you actually get them (like, a union).

This was a pretty small group of employees who basically moved into management (most of them were union before) and basically promised a similar benefit program to if they had stayed union... Save Mart under the family ownership despite struggling for years honored this promise to the employees.

The problem is Bob Piccinini promised this to employees and he upheld his promise but he wasn't there forever. But even his granddaughter continued the benefit after he left. It wasn't until the private equity that they cut this.

This is why it is unfortunately sometimes best to step back and do something to ensure the benefits you promise to people will still be there regardless if your company is no longer yours anymore. Again, like a union. This to me is the best selling point of unions, government jobs, etc.

[ClownLoach]

This... was bad. Really bad. And, THIS is why you need something that keeps your post-employment benefits outside your employer to ensure you actually get them (like, a union).

This was a pretty small group of employees who basically moved into management (most of them were union before) and basically promised a similar benefit program to if they had stayed union... Save Mart under the family ownership despite struggling for years honored this promise to the employees.

The problem is Bob Piccinini promised this to employees and he upheld his promise but he wasn't there forever. But even his granddaughter continued the benefit after he left. It wasn't until the private equity that they cut this.

This is why it is unfortunately sometimes best to step back and do something to ensure the benefits you promise to people will still be there regardless if your company is no longer yours anymore. Again, like a union. This to me is the best selling point of unions, government jobs, etc.

I suspect that these folks and their lawyers know that Save Mart is positioning itself to acquire hundreds of stores, and it's a really bad look to have this matter outstanding which would cost so little to resolve. That's why they're making a lot of noise right now. The cost is minimal (420 employees X $600/month). I expect this is going to get settled, and fast. Can't easily make the argument that you're a fiscally responsible operator who will do a good job taking over all these stores with this matter in the headlines.

[storewanderer]

This... was bad. Really bad. And, THIS is why you need something that keeps your post-employment benefits outside your employer to ensure you actually get them (like, a union).

This was a pretty small group of employees who basically moved into management (most of them were union before) and basically promised a similar benefit program to if they had stayed union... Save Mart under the family ownership despite struggling for years honored this promise to the employees.

The problem is Bob Piccinini promised this to employees and he upheld his promise but he wasn't there forever. But even his granddaughter continued the benefit after he left. It wasn't until the private equity that they cut this.

This is why it is unfortunately sometimes best to step back and do something to ensure the benefits you promise to people will still be there regardless if your company is no longer yours anymore. Again, like a union. This to me is the best selling point of unions, government jobs, etc.

I suspect that these folks and their lawyers know that Save Mart is positioning itself to acquire hundreds of stores, and it's a really bad look to have this matter outstanding which would cost so little to resolve. That's why they're making a lot of noise right now. The cost is minimal (420 employees X $600/month). I expect this is going to get settled, and fast. Can't easily make the argument that you're a fiscally responsible operator who will do a good job taking over all these stores with this matter in the headlines.

I agree, it is strategic of them to raise this issue now. But who will fight for these employees other than the lawyers? They are non-union. I wonder if they will settle or hold their ground that they were within their rights to cut it. Seems nothing in CA State Law stopped them from cutting it either.

[veteran+]

This... was bad. Really bad. And, THIS is why you need something that keeps your post-employment benefits outside your employer to ensure you actually get them (like, a union).

This was a pretty small group of employees who basically moved into management (most of them were union before) and basically promised a similar benefit program to if they had stayed union... Save Mart under the family ownership despite struggling for years honored this promise to the employees.

The problem is Bob Piccinini promised this to employees and he upheld his promise but he wasn't there forever. But even his granddaughter continued the benefit after he left. It wasn't until the private equity that they cut this.

This is why it is unfortunately sometimes best to step back and do something to ensure the benefits you promise to people will still be there regardless if your company is no longer yours anymore. Again, like a union. This to me is the best selling point of unions, government jobs, etc.

Perhaps the California Labor Commissioner might help in some way?

It is probably the strongest Labor Commissioner in the country.

[storewanderer]

I was actually surprised to see this case still outstanding. I thought sure there was something in CA labor laws that would have gotten this resolved in favor of the retirees. But I'm not seeing much on that front.

But will this impact their ability to purchase divested stores? It and the pharmacy closures are definitely topics worth being brought up by any concerned parties.

[ClownLoach]

I was actually surprised to see this case still outstanding. I thought sure there was something in CA labor laws that would have gotten this resolved in favor of the retirees. But I'm not seeing much on that front.

But will this impact their ability to purchase divested stores? It and the pharmacy closures are definitely topics worth being brought up by any concerned parties.

I am sure that if they learn they have any chance of acquiring the stores they're interested in they will settle this in a heartbeat, quietly, with the case sealed and NDA's all around. They'll make it like it never happened. They are not going to trip on pennies while they're chasing big dollars.

And if they don't have a chance of expanding through this merger? They'll probably leave the status quo as it is and let the courts decide.

As far as who will fight for these employees who don't have a union? Obviously these lawyers have figured out that there's a case here and they can make enough money on it to be worth their time. They're going to fight for the entire amount plus court costs, legal fees and interest. If there wasn't a winnable case here then nobody would have taken it.

[HCal]

Perhaps the California Labor Commissioner might help in some way?

It is probably the strongest Labor Commissioner in the country.

Almost all state-level regulation of private sector employee/retiree benefit plans is pre-empted by ERISA. Only the federal government has jurisdiction over these things.