Supermarket chain cuts 30 workers

The Piggly Wiggly Carolina Co. supermarket chain has laid off about 30 workers at its warehouses and offices, marking the 61-year-old company's first-ever payroll cuts stemming from an economic downturn.

Rita Postell, manager of community and employee relations, said the layoffs were necessary to reduce "expenses just like every other business that is trying to be competitive and remain in business."

But the news shocked some of the affected employees, who said they had been told their jobs were safe.

Curtis Morrison, 43, said he lost his job as an electrician in the grocer's Jedburg warehouse Friday.

As rumors of layoffs circulated, Morrison said executives called a meeting several weeks ago to reassure workers that the chain was financially healthy and that job cuts weren't on the horizon. The company's weekly memos about sales growth also painted an upbeat picture, he said.

"We kept hearing how well we were doing," he said. "It said we were doing great, sales were up, and the next thing we know, we were being laid off."

Postell said the company "is just truly committed to the employees and its customers, so it was a challenge to have to do this. But believe me, they took it very seriously before this decision was made."

The Charleston-based company employs about 5,000 workers and operates about 115 supermarkets in the Carolinas and Georgia.

About two months ago, Piggly Wiggly Carolina sold its truck fleet to Miami-based Ryder Systems Inc. The agreement between the two companies allowed the grocery chain to lease the vehicles back, helping it minimize risk and cut costs. Shortly after that transaction, Piggly Wiggly laid off its 17-worker mechanics department.

Some of those employees were hired by Ryder, while others picked up lower-paying warehouse positions with Piggly Wiggly. Seven workers were left without work.

On Friday, the company laid off another 26 employees who worked in the corporate headquarters and at two local warehouses. Piggly Wiggly confirmed the figures.

"It was a good job," said James Butler, a former warehouse employee who's now scrambling to find work.

Butler said he's frustrated that he can't get access to the nearly $30,000 saved in his employee stock account to pay rent, utility bills and child support until he can find another job. Postell said employees affected by the cuts won't be able to access those funds, which are separate from their retirement accounts, for at least five years.

But Butler said he's also irked at how the company continues to tout its customer savings programs and commitment to the local community.

"They seem to be concerned about other people, but we were the backbone of the company," he said.

Reach Katy Stech at 937-5549 or kstech@postandcourier.com.

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