TMCnet News

Council joins workers in support for ousted CEO [The Eagle-Tribune, North Andover, Mass. :: ]
[July 23, 2014]

Council joins workers in support for ousted CEO [The Eagle-Tribune, North Andover, Mass. :: ]


(Eagle-Tribune (North Andover, MA) Via Acquire Media NewsEdge) July 23--HAVERHILL -- City councilors waded into the Market Basket dispute last night, voting to send a letter to the company's board of directors and its president expressing support for ousted president Arthur T. Demoulas and workers who want their former leader reinstated.



The vote was not unanimous, however. Three councilors said they didn't feel it was the council's place to take a formal position on how a private business is being run.

Arthur T. Demoulas was recently removed as the company's president by his cousin Arthur S. Demoulas. Arthur S. and the company's board then hired new co-CEOs that the workers believe will make changes that will hurt workers while increasing profits for stakeholders.


The dispute has sparked protests, rallies, employee walkouts and customer boycotts, and has led to empty or near empty stores in Massachusetts, New Hampshire and Maine. At least eight managers have been fired in recent days for their support of Arthur T. Demoulas.

Councilors also voiced concern over the fact the labor strife has led to empty shelves and a shortage of fresh food at the city's three Market Basket stores -- the only full-service grocery stores in the city.

"A lot of our residents don't have their own transportation and take taxis to Market Basket," Councilor Mary Ellen Daly O'Brien said. "It's going to be a problem and a lot more expensive for them to take taxis out of town to get their groceries." Councilor Thomas Sullivan, who said he worked for the supermarket chain for seven years in the 1970s and 1980s, urged the council to take a formal position of support for Arthur T. Demoulas and Market Basket employees.

"I won't shop there until Arthur T. is reinstated and this is resolved for all the employees," Sullivan said, noting the company's board is scheduled to meet Friday. "The two cousins need to make peace and fill the stores back up and end this." In the meantime, Sullivan urged residents to get their meat from Haverhill Beef, their seafood from Gulf of Maine Seafood and their produce from the local farmer's market on Saturdays.

Councilors William Macek, Robert Scatamacchia and Michael McGonagle voted against sending the letter.

"I support the employees, but I don't feel it's this body's purview to tell a private company how to run their business," McGonagle said.

Macek and Scatamacchia said they also fully support the workers.

"I shop at Market Basket, I love Market Basket and I fully support what's going on," Macek said of the worker protests and customer boycotts. "I think it's OK for individual councilors to speak out. But I don't think this council should have a voted opinion or position on a privately-held company. And we don't know exactly why the board removed him (Arthur T. Demoulas)." "This is outside the realm of government," Scatamacchia said of sending the letter.

Mayor James Fiorentini threw his support behind Arthur T. Demoulas and the workers Monday. Fiorentini is among dozens of Massachusetts lawmakers and mayors who agreed to support a petition started by state Sen. Barry Finegold, D-Andover, that calls for an immediate boycott of Market Basket grocery stores and pledges support for employees and Arthur T. Demoulas.

___ (c)2014 The Eagle-Tribune (North Andover, Mass.) Visit The Eagle-Tribune (North Andover, Mass.) at www.eagletribune.com Distributed by MCT Information Services

[ Back To TMCnet.com's Homepage ]