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Business

Family feud sparks revolt at grocery store chain

The Philippine Star

WEST BRIDGEWATER, Mass. (AP) -- It’s been called a David vs. Goliath story, a “Tale of Two Arthurs” and even the “ultimate Greek tragedy,” but the characters in this drama are not Biblical or literary figures. They’re grocery store owners.

A workers’ revolt at the Market Basket supermarket chain has led to empty shelves, angry customers and support for a boycott from more than 100 state legislators and mayors.

Industry analysts say worker revolts at non-union companies are rare, but what’s happening at Market Basket is particularly unusual because the workers are not asking for higher pay or better benefits. They are demanding the reinstatement of beloved former CEO Arthur T. Demoulas, whom they credit with keeping prices low, treating them well and guiding the company’s success.

The New England grocery store chain is embroiled in a family feud featuring two cousins who have been at odds for decades.

While earlier squabbles between Arthur T. Demoulas and Arthur S. Demoulas were fought in courtrooms, this dispute has spilled into the stores.

For the past week, warehouse workers have refused to make deliveries to Market Basket stores, leaving fruit, vegetable, seafood and meat shelves empty. Workers have held huge protest rallies and organized boycott petitions through social media, attracting thousands of supporters.

Customers are defecting to other grocery stores. In some cases, customers have taped receipts from competitors to Market Basket windows.

“We are going to go somewhere else from now on,” said Soraya DeBarros, as she walked through a depleted produce department at the Market Basket in West Bridgewater this week. “I’m sad about it because of course I want to keep the low prices, but I want to support the workers.”

Despite threats by new management to fire any workers who fail to perform their duties, 300 warehouse workers and 68 drivers have refused to make deliveries. Eight supervisors have been fired.

The new executives have assured workers they are not planning drastic changes in the way the company is operated and have urged them to return to work.

On Friday, the company again appealed to workers to return, saying they won’t be punished or face any change in compensation and benefits.

“We welcome back associates who are committed to Market Basket’s customers,” it said in a statement.

Massachusetts Attorney General Martha Coakley, who is running for governor, and New Hampshire Gov. Maggie Hassan have publicly supported the employees.

“If you had told me that workers at a grocery store would walk out to save the job of a CEO, I would say that’s incredible. There is usually such a gulf between the worker and the CEO,” said Gary Chaison, a professor of industrial relations at Clark University in Worcester.

Market Basket stores have long been a fixture in Massachusetts. The late Arthur Demoulas - grandfather of Arthur S. and Arthur T. and a Greek immigrant - opened the first store in Lowell nearly a century ago. Gradually, Market Basket became a regional powerhouse, with 25,000 employees and 71 stores in Massachusetts, New Hampshire and Maine.

 

ARTHUR DEMOULAS

ARTHUR S

ARTHUR T

BASKET

CLARK UNIVERSITY

DEMOULAS

DEMOULAS AND ARTHUR S

MARKET

MARKET BASKET

WORKERS

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