PhillyDeals: Amoroso's drivers speak out on plans for change

May 04, 2011|By Joseph N. DiStefano, Inquirer Staff Writer
  • Delaware Gov. Jack Markell has signed a law to hike state workers' payment for benefits.

I know this news may cause you some anxiety," Leonard M. Amoroso Jr., president of his family's century-old Lansdowne-based baking company, said in a letter last month to dozens of route drivers who truck his bread six days a week to markets and sandwich shops across the Philadelphia region.

Instead of employing drivers, "Amoroso's Baking Co. intends to restructure its distribution system and to sell distributorships to full-equity independent owners."

Two days later, Amoroso sent layoff notices. Their jobs, he told drivers, "will be eliminated effective June 19."

To replace his 77 Teamsters Union-member drivers, Amoroso wants to hire independent contractors, making them fellow businessmen, though not exactly partners.

Story continues below.

He's offering to sell drivers their routes, for prices drivers say start around $100,000, which Amoroso called a "substantial discount from our estimate of market value." In case they can't borrow enough from the bank, he offered "financing of up to 100% of the purchase price." He promised "buy back" agreements that would allow drivers to sell the routes back to Amoroso's for "a full refund," and "for any reason."

Drivers were to have confirmed interest in buying routes as of Monday. How'd that go? No immediate comment from Amoroso or Teamsters Local 463 president Bob Ryder, who has opposed the move and filed grievances that could delay or modify the terms of the change.

Since I wrote about the proposal last month, I've been hearing from drivers and their wives. If their words are any guide, Amoroso is right about at least one thing: The proposal has caused some anxiety.

Sample comments:

"Here's a typical Sunday-through-Friday-night week at Amoroso's, holidays included: Out of the house by 11 p.m. Pick up the truck. Load the truck at two different warehouses. Hopefully the rolls are done. Usually not . . . Travel over 150 miles to deliver rolls to 30 customers. . . . Pick up their empty trays [and] payments. Then back to the warehouse by noon the next day. Home by 1 p.m., lunch, and bed until the clock strikes 10 p.m."

"Most of the drivers agree the company has the right to run its business how it wishes." But, the same person added, the sudden announcement by Amoroso's, after some workers had scheduled and prepaid family vacations and budgeted other expenses, has caused hard feelings and left some to wonder whether they can trust the company in what looks like a gamble.

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