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US: mass layoffs continue
The bankrupt supermarket chain Winn-Dixie Stores Inc. said Tuesday that it would sell or close 326 stores and cut 22,000 jobs. The company currently operates 901 stores in nine Southern states and 12 in the Bahamas.
The mass-layoff announcement, which will affect about 28 percent of Winn-Dixie’s workforce, is the biggest US job cut since General Motors announced earlier this month it would eliminate 25,000 manufacturing jobs by the end of 2008.
Winn-Dixie, founded in 1925, filed for bankruptcy in February, suffering lost market share to rivals such as Wal-Mart and Publix Super Markets. The company laid off 10 percent of its workforce in 2004.
Under terms of the bankruptcy agreement, the supermarket chain will completely pull out of North and South Carolina, Tennessee and Virginia and will carry out substantial closures in Georgia and Florida. The company expects to have approximately $7.5 billion in annual revenue after the closures, compared to the current $10 billion.
In addition to store closings, the company will put up for sale its manufacturing plants, including its six dairy and culture plants, a pizza plant and its Chek Beverage/Deep South Products plant in Fitzgerald, Georgia.
Lower-paid workers—the vast majority of Winn-Dixie’s labor force—will receive minimal severance benefits under a compromise plan approved by US Bankruptcy Judge Jerry Funk. Full-time workers will receive only two weeks’ severance pay, and part-time workers will get $100 to $200 one-time payments.
The severance deal is far sweeter for top executives. Peter Lynch, company president and CEO, stands to receive double his $900,000 annual salary if he loses his job, and other executives would receive severances equal to 12 or 18 months’ salary. The judge also approved Winn-Dixie’s plan to award retention bonuses to 290 “key employees”—to the tune of $12 million.
Also on Tuesday came an announcement from Ford Motor Co. that it would cut 1,700 white-collar positions from its North American operations. The cuts come on top of 1,000 salaried job cuts announced by the company in April.
The number-two US automaker said its profit outlook for North America has weakened over the last few months, and it has reduced its projection for annual profits for the second time in two months. Sales of large and mid-size SUVs, which previously have been a major profit marker for both Ford and General Motors, have fallen sharply.
Read More
http://wsws.org/articles/2005/jun2005/jobs-j23.shtml
Winn-Dixie, founded in 1925, filed for bankruptcy in February, suffering lost market share to rivals such as Wal-Mart and Publix Super Markets. The company laid off 10 percent of its workforce in 2004.
Under terms of the bankruptcy agreement, the supermarket chain will completely pull out of North and South Carolina, Tennessee and Virginia and will carry out substantial closures in Georgia and Florida. The company expects to have approximately $7.5 billion in annual revenue after the closures, compared to the current $10 billion.
In addition to store closings, the company will put up for sale its manufacturing plants, including its six dairy and culture plants, a pizza plant and its Chek Beverage/Deep South Products plant in Fitzgerald, Georgia.
Lower-paid workers—the vast majority of Winn-Dixie’s labor force—will receive minimal severance benefits under a compromise plan approved by US Bankruptcy Judge Jerry Funk. Full-time workers will receive only two weeks’ severance pay, and part-time workers will get $100 to $200 one-time payments.
The severance deal is far sweeter for top executives. Peter Lynch, company president and CEO, stands to receive double his $900,000 annual salary if he loses his job, and other executives would receive severances equal to 12 or 18 months’ salary. The judge also approved Winn-Dixie’s plan to award retention bonuses to 290 “key employees”—to the tune of $12 million.
Also on Tuesday came an announcement from Ford Motor Co. that it would cut 1,700 white-collar positions from its North American operations. The cuts come on top of 1,000 salaried job cuts announced by the company in April.
The number-two US automaker said its profit outlook for North America has weakened over the last few months, and it has reduced its projection for annual profits for the second time in two months. Sales of large and mid-size SUVs, which previously have been a major profit marker for both Ford and General Motors, have fallen sharply.
Read More
http://wsws.org/articles/2005/jun2005/jobs-j23.shtml
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