Schnucks’ Warehouse Operator XPO Plans Major Layoffs

Schnucks’ Warehouse Operator XPO Plans Major Layoffs

XPO Logistics Supply Chain For Schnucks’ Laying off 204 in St. Louis County

ST. LOUIS, MO/March 5, 2017 (STL.News) The problems continue for Schnucks’ Markets, as XPO Logistics, the company hired to run Schnucks $100 million distribution center says it will lay off 204 employees in St. Louis County.  The disclosure came in a Feb. 28 letter to the state of Missouri after it was revealed that it’s in an ongoing dispute with the grocer.

Maryland Heights-based Schnucks, which has 100 grocery stores in five states, hired the Greenwich, Connecticut-based XPO Logistics Supply Chain to staff the grocer’s 915,000-square-foot warehouse in Kinloch that opened in mid-2016.

Last month XPO sued Schnuck Markets claiming the grocer failed to pay it more than $1.3 million in payments to them and had opened the Kinloch facility early making it impossible for XPO to properly perform its warehouse management services.

Schnucks’ is denying the allegations in XPO’s lawsuit and told the Post-Dispatch it terminated the contract with XPO because the logistics company had failed to operate the warehouse properly under the terms of its contract.

The letter to the Missouri economic development officials alerted the state of pending layoffs due to XPO’s contract termination with Schnucks’.  It stated that it would be laying off 119 full- and part-time employees at the Kinloch facility, 46 employees in Hazelwood and 39 employees in Vinita Park.

XPO is the third-party logistics provider hired last year amid Schucks’ controversial decision to lay off 190 of its union employees and replace them with non-union workers.  In June, the nearly 7,000 members of Teamsters Local 688, which represented the workers laid off last year, announced a boycott of Schnucks stores.

Schnucks spokesman Paul Simon says “Schnucks is now working to secure another logistics partner for an orderly and seamless transition and will do everything we can to ensure customers will not be impacted.”

The 204 layoffs could come as early as April 20.