Ahold Delhaize: reaches tentative Deal with US unions
(CercleFinance.com) - Ahold Delhaize's US brand Stop & Shop has reached a tentative deal with unions to terminate its participation in the United Food & Commercial Workers International Union (UFCW) industry pension fund.
Under the terms of the deal, Stop & Shop expects to pay a withdrawal liability of 649 million dollars (567 million euros) to meet its obligations for past service for associates and retirees in the plan.
The provision will represent approximately 500 million dollars (437 million euros) after tax, which will be booked in Ahold Delhaize's third-quarter results.
However, the Dutch retailer said that its full-year 2020 free cash flow outlook will not be affected.
Together, Ahold Delhaize's Stop & Shop and unions now plan to create a new pension plan to better protect participants and beneficiaries, with reduced risk of plan underfunding and improved visibility on annual contributions, the retailer said.
Copyright (c) 2020 CercleFinance.com. All rights reserved.