Friday, August 29, 2014

A probable pyrrhic victory

The employees of the Market Basket chain celebrated the return of open handed CEO Arthur T Demoulas as a victory for the working man.  Demoulas had been ousted by his cousin in a move that was widely seen as a prelude to benefit cuts for employees of the chain who have been compensated at a much higher rate than similar worker in other chains.  However, I have been told by someone on the Boston produce market who has done business with Market Basket for many years there is far more to the story than what the press has covered.  In his take on the saga, the whole family is a little dotty, although shrewd business people.  Arthur T's side, while on the worker's side has also been taking advantage of some business dealings to the detriment of his cousin's interests.  In order to buy his way back to CEO, Arthur T has now brought in outside investors who will expect a high return on their investment.  The days of wine and roses for employees may be short lived, and if Demoulas has trouble servicing the new debt, there are suitors waiting in the wings.  Unfortunately for the workers, Kroger is not in business to look after their interests.

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