Dive Brief:
- Acme said it will convert approximately 100 full-time jobs to part-time positions in 10 northern New Jersey supermarkets, according to the Shelby Report.
- The 10 stores were all part of the 2016 portfolio acquisition of the former A&P chain.
- The retailer announced it will offer a voluntary severance package to help reduce the number of positions affected and has started working with the unions to develop a plan that will keep as many jobs as possible.
Dive Insight:
With Acme looking to replace full-time workers with part-timers, it is simply doing what many in the retail industry do to try to cut costs and operate in a more 2017 mindset.
The gig economy, a lifestyle where trained workers work part-time and go from job to job, is the new normal. Experts say more millennials want to work like this, and businesses are finding that people are even more productive when they do.
A recent study from the Metropolitan Policy Program at the Brookings Institution showed that gig employment is increasing far faster than traditional payroll employment. Some studies have showed that as many as 40% of U.S. employees are taking some part in the gig economy way of working.
The benefit for grocers come mostly because they don't have to offer benefits — like insurance, employer Social Security and Medicare — which saves them money. Plus, stores have a larger pool of people to call on if someone gets sick or quits.
The problem is that employees may not always be available when needed since they don’t have set hours every week. This could cause problems during busy times of the year such as around Thanksgiving and Christmas. Plus, with employees not working every day, the lack of rhythm of the workplace could slow things down. Workers who were not scheduled may have also missed important work updates, such as safety measures.