THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Friday, April 5, 1996 TAG: 9604050595
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY STEPHANIE STOUGHTON, STAFF WRITER
DATELINE: NORFOLK LENGTH: Short : 42 lines
Kmart Corp. has reversed an earlier decision, saying it will now transfer employees from an aging store that closed earlier this week to a Super Kmart being built down the road.
The Troy, Mich.-based retailer had planned to lay off about 150 employees at the Kmart outlet off Military Highway in Norfolk. But senior employees criticized the company, saying they should be guaranteed jobs at the nearby Super Kmart.
``They got a lot of flak about it,'' said an employee who has worked at the Kmart store for more than 15 years. ``It got all the way to Troy.''
Under the original plan, the store employees and anyone else were allowed to re-apply for new positions at Super Kmart. But senior Kmart employees worried that Super Kmart instead would opt for less experienced, minimum-wage workers.
Employees also feared they'd lose their health benefits. Their benefits would be expiring in early June, while Super Kmart wouldn't open until the fall.
Employees received news earlier this week saying they would be guaranteed jobs at Super Kmart, a combination supermarket and discount store.
``The benefits will be carried over,'' said Stephen Pagnani, a Kmart spokesman. ``All workers will be transferred.''
Employees also will retain their salaries, Pagnani said.
Store 3091, along Military Highway in Norfolk, closed on Wednesday. The 23-year-old outlet was one of several underperforming Kmart stores being shut down across the nation.
At the same time, the company is expanding Super Kmart. In South Hampton Roads, the company plans to open several of the gargantuan stores. The Norfolk superstore, located at the intersection of Military Highway and Norview Avenue, is expected to open around September with up to 600 workers. by CNB