Since July 2012, Supervalu has taken actions to change course, including debt refinancing, changes to its leadership team, the closure of underperforming stores, and reduction of workforce in stores and distribution centers and the introduction of AlixPartners. AlixPartners is a global firm that specializes in improving corporate financial and operational performance, executing corporate turnarounds and providing litigation consulting and forensic accounting services in urgent, high-impact situation.
Supervalu announced these compensation and benefit changes to its employees.
2013 Merit Pay Increases There will be no merit pay increases in 2013 for salaried employees in Supervalu’s corporate, store banners, regions and distribution center offices. Store hourly, store pharmacy and hourly operational distribution center positions are not impacted.
Pay Frequency Change Employees will transition from a weekly pay basis to a bi-weekly pay schedule, subject to local applicable laws; Others will be moved to a monthly pay schedule.
Service Anniversary Awards Program Discontinued The service anniversary awards program as it existed in 2012 will be discontinued. Supervalu is looking into meaningful ways to recognize service and performance for employees.
STAR 401(k) Changes Changes will be made to the 401(k) program for at least 2013. For salaried and hourly employees in corporate, store banners, regions and distribution center offices, the company’s matching contributions are being suspended. For store hourly, store pharmacy and hourly operational distribution center positions, the company’s maximum matching contributions will be reduced from 5% to 3.5%. Union employees may be affected by this change subject to their collective bargaining agreements.