Business & Tech

Market Basket Workers Not Paid Amid Protests

The latest in the showdown between employees and the supermarket's corporate leaders.

By Liz Taurasi

As the Market Basket saga enters its third week, it’s looking to be a telling one in the ongoing saga.

Despite being ordered back to work Monday or face being replaced and corporate job fairs scheduled for this week, employees continue to show their solidarity toward their former CEO Arthur T. Demoulas and have planned another rally for Tuesday.

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It’s been more than two weeks since employees walked off the job saying they won’t return to work unless ousted CEO Arthur T is back at the helm. Employees continue to demonstrate daily in front of stores throughout the supermarket’s 71-store chain, and many customers, as well as local politicians, have joined in the boycott until the employees’ voices are heard.

Arthur T. Demoulas was ousted in June when a majority of the company’s board shifted in support of Arthur T.’s cousin and rival, Arthur S. Demoulas. Arthur T. Demoulas was replaced with two co-CEOs from outside the company.

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Last Wednesday, officials gave all employees an ultimatum -- return to work or be replaced. Co-CEOs Felicia Thornton and James Gooch said last week they want all associates back to work by Monday Aug. 4

Job fairs for current Market Basket employees looking to take different positions within the company or seeking a promotion are scheduled for Monday and Tuesday this week. A job fair set for Wednesday is open to the general public.

But employees aren’t budging. Another rally is planned in Tewksbury on Tuesday at 11 a.m. at Tewksbury’s Stadium Plaza located at 10 Main St., where they expect upwards of 15,000 to attend. And social media accounts supporting the work stoppage and boycott indicate employees plan to continue in their protests no matter what the outcome may be.

Is Arthur T.’s Offer Still on the Table?

The supermarket’s board last week confirmed that Arthur T. and his shareholders made a bid to purchase the remaining 50.5 percent of the company. The board met a week ago last Friday and then had another meeting on last Monday. While it was widely reported on Tuesday that Arthur T.’s was the only offer being actively considered, board members made another statement later that day saying this was not true and they were still considering other offers. It is not currently known where the board stands in negotiations on Arthur T.’s or any other offers to purchase the supermarket chain.

MA and NH AGs Send Warning to Market Basket

After the management team issued the order for employees to return to work or face dismissal, and published ads promoting the upcoming job fairs Martha Coakley and Joseph Foster, AGs from Massachusetts and New Hampshire, issued a two-page warning to the company reminding them of employment laws in both states, noting that the company’s decisions “directly impact thousands of employees and thousands of customers” in both states and have “serious implications for the many small businesses that supply your stores.” Both wrote that their offices had received “an uptick of calls” from the chain’s employees about their employment rights.

Middle Managers Told They’re Not Being Paid

Middle managers have taken the first big hit having received certified letters Friday from co-CEOs Gooch and Thornton notifying them they won’t be paid due to their “ongoing failure to report to work,” but would receive their checks if they report to work on Monday, the Boston Globe is reporting.

Supervisors Fired in July to Sue

The eight supervisors fired in July for taking part in the protests are planning to sue the company for wrongful termination. The eight individuals - were notified of their termination after receiving letters via courier back on July 20. Their terminations came just days after the first rally in reaction to the July 17 deadline employees set for company leaders to reinstate Arthur T. as CEO.

A lawyer representing the eight is threatening to sue on many grounds including alleged retaliation, wrongful termination, unpaid wages and benefits, according to the Boston Herald.

Patch will continue to bring you all the latest on the Market Basket situation as it continues to develop.

Ongoing Market Basket Coverage:

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