Economic Effects Of The Market Basket Strike

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Economic Effects of Market Basket Strike Market Basket was built by Greek immigrants (Demoulas family) who opened their first store in Lowell, Massachusetts, in 1916. Market Basket has become the 34th largest privately owned supermarket chain in the U. S. It has a low price high employee compensation mentality with 71 stores and 25,000 employees located primarily in low-to-middle-income communities throughout New England. The Market Basket strike began Mid-July 2014 because of the firing of a highly respected CEO, Arthur T. Demoulas, by shareholders loyal to his cousin, Arthur S. Demoulas. The firing was prompted by Arthur T. wanting to give back profits to the employees and customers instead of giving shareholders (mostly family members) …show more content…

2014) Arthur T. originally found himself in hot water with the company’s board five years ago when he was held accountable for losing $46 million because of an investment in Fannie Mae and Freddie Mac. Arthur T. and two other trustees approved putting $46 million of the employee profit-sharing plan into the two housing agencies just months before the two companies got caught up in economic downturn. When the money was lost Arthur T. made sure the company made up for a loss by putting the $46 million back in the profit-sharing …show more content…

More than 40 clergy members signed a letter urging Market Basket to settle the dispute. The crisis has had a devastating effect in the Merrimack Valley where 20 of the chain's 42 Massachusetts stores are located. In Lowell, MA, Rev. Paul Ouellette, pastor at St. Patrick Church says he hears parishioners talk about their worries about jobs and families. In the weeks of the strike Market Basket workers put their jobs on the line. Most of the church's 1,000 parishioners work for Market Basket. For many low-income and elderly residents, Market Basket stores are the only place where they can walk or use public transportation to buy groceries that fit their budget. "People are hurting," the Rev. Raffoul Najem of Community Christian Fellowship of Lowell said to urge the Market Basket to work toward a speedy resolution to the crisis. "Small businesses are going out of business because of this issue. Please fix it." Najem also added “Many immigrants and low-income residents live near Market Basket stores because the supermarket chain sells groceries and goods for affordable prices, Market Basket is the supermarket of the poor." He went on to say “Most grocery items cost up to three times as much when shopping at a different supermarket, something many parishioners can’t

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