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UTICA, N.Y. -- Scheidelman, Inc., a grocery wholesaler in business here since the turn of the 20th century, will close permanently by the middle of April, according to a local press report.
The company would not confirm reports of the plan to close. However, in the Utica Observer-Dispatch, an official for Teamsters Local 182, which represents 20 of Scheidelman's workers, and William Chanatry, owner of c.e.o. of Chanatry's Market in Utica, a customer since 1912, both acknowledged that the wholesaler was going out of business.
According to Al Van Hoven, secretary and business agent for Local 182, Scheidelman said it is closing due to failed contract negotiations with the union. The union and the wholesaler had been negotiating a nine-year contract to succeed a three-year deal that expired last month, Van Hoven said, adding that the workers were willing to give up future pension distributions but couldn't accept Scheidelman's proposal to forgo raises until September 2009.
Scheidelman hasn't offered severance packages or gotten in touch the New York State Department of Labor to arrange for unemployment services for employees, said Van Hoven.