Month: June 2020

After UFCW 401 ended negotiations on June 10, this past Thursday and Friday, you were asked to participate in a strike vote. Your voice is important to us and we thank you for exercising your right by participating.

The results indicate a 79% vote in favor of strike action and a participation rate of 44% of  eligible voters. We are still determining next steps and will reach out to your Union in the near future to determine a path forward. We do want to reiterate our commitment to finding a fair agreement that supports you and positions Safeway for growth in the Province.

Thank you for your continued commitment to your teams and your communities, during what we know is a stressful time. Your efforts truly showcase just how strong our teams in Alberta are. Whatever comes next, we will continue to work together, and we hope to come to a fair resolution soon.

Next steps should be reported soon, so please continue to keep yourself informed. We will post to Safeway Talks when updates are available. Please also check in with your store manager if you have any questions.

We know anxiety levels are high as you head into a strike vote this week, in the midst of the COVID-19 pandemic. Thank you for continuing to support one another and our customers during these uncertain times.

We want to remind you how important your voice is in this process. We encourage you to stay active, stay informed on the facts and continue to ask questions to ensure you have all the information you need.

On Thursday and Friday of this week, your Union has asked you to cast your vote to authorize strike action. Whatever your opinion is, please make it heard by attending the strike vote meeting and casting your vote. Not voting means you are leaving critical decisions about your job in the hands of others.

If you have questions, please ensure you attend all Union meetings and keep informed on the issues.   Also, your Store Managers are willing to answer your questions and offer their support. If you have any scheduling issues that impact your ability to attend the strike vote meeting, please speak to your Store Manager, who may be able to provide assistance.

Your vote matters, please exercise this right to make your voice heard.

Since we began bargaining with UFCW 401 over a year ago, it’s been our goal to ensure that you have all the information you need from both sides of the table to stay up-to-date with the facts. We were disheartened to see that the Union left out some crucial information when recently communicating with you. To clarify, here is an update on recent contract negotiations at Safeway:

• The Company and Union negotiators have been working with a government appointed mediator assigned in April to help us reach a new collective agreement.
• The mediator and the parties scheduled a week of negotiations between June 9 to June 12.
• On Tuesday, June 9 we began discussions on some operational items that need to be addressed in order put us on a level playing field with our competitors.
• On Wednesday, June 10, union negotiators asked the government mediator to “write out” — to end the mediation and take the next step toward a strike. It is not accurate to say that the mediator ended negotiations. The Union ended negotiations.
• You are now being asked to approve a strike vote. After a successful strike vote, there is no legal requirement for your Union to consult with you again before calling a strike.

Within hours of asking the mediator to leave the process, the Union began gearing up for a strike vote, and asking its members to support it. Here are a few comments on that:

• We strongly encourage you to participate in Union meetings, to ask questions to make sure you know all the facts about these negotiations, and to vote in the coming strike vote. If you don’t participate, decisions about your job and the future of Safeway will be made by others.
• If you have any questions for the company, please speak to your store manager and we will work hard to have your questions answered as quickly as possible.
• Strikes and lockouts won’t make the issues we face at Safeway go away. The only thing a labour dispute at Safeway will achieve is pushing our customers away — the last thing any of us should want.
• We need to keep our customers, and recruit new ones, to ensure a safe and secure future for Safeway and for the thousands of families that depend on us. To do that, we need to refresh and reinvest in our Safeway stores, and we need to offer our customers the discount options they are looking for. The way to get there is with a competitive, modern and mutually beneficial collective agreement.
• Whatever happens in the weeks and months to come, at some point we are all going to have to return to the bargaining table. The same issues will still need to be addressed.
• When the Union decides to stop focusing on strikes, it will be a better time to talk. When we start talking, we’ll keep working on the outstanding issues because we must resolve them, to ensure a safe and secure future for Safeway and our teammates.

Again, if you have any questions or comments for us, please don’t hesitate to speak to your store manager. We’ll continue to share information on these negotiations as they go forward.

This week, we returned to the table with UFCW 401 and the Safeway bargaining committee for four more days of collective bargaining with the assistance of a government appointed mediator. We were committed to continuing mediation and working to finalize a competitive and fair collective bargaining agreement.

After only one and a half days of negotiations, the Union has decided to ask the government appointed bargaining mediator to “write out” effectively ending mediation. By asking the mediator to take this step, the union has triggered the legally-required 14-day “cooling-off” period before calling for a strike vote, which will likely occur in the last week of June. Following a strike vote, where the majority of employees who participate authorize a strike, the Union can begin a strike by providing 72 hours notice. There are no further steps required before a strike can begin.

By ending mediation, UFCW negotiators are walking away from a competitive offer that included:

• Significant investment in the Safeway banner in Alberta, building a more profitable and secure future
• Significant annual lump sums payments for all top-rated employees throughout every year of the agreement
• Signing bonuses for all employees
• Wage increases for approximately 2,000 employees who are currently being paid minimum wage
• Benefit improvements for those currently on the Company Benefit Plan.

The last offer we proposed to the Union was competitive and fair, especially in light of the uncertain economic conditions that Alberta is facing and the continued poor financial performance of many Safeway stores. We are disappointed that during a time of unprecedented stress and anxiety, UFCW 401 has made the decision to end the mediation process.

In the coming days, you will see more activity around the store as we engage our business continuity plans and prepare for a potential strike. This could include inventory changes to adjust for strike or seeking replacement workers.  We encourage you to speak with your Store Manager if you have any questions.

Please continue to stay tuned to Safeway Talks as we commit to keeping you updated throughout this process.

As we head back to the bargaining table next week, it’s important to us that we remain connected with you, so you have a clear understanding of what we are trying to achieve. Times are challenging, but we are committed to the collective bargaining process and securing a strong future for Safeway in Alberta.

Last week, we presented an offer to UFCW 401 that they have decided to take to their membership for survey. This survey fails to mention the important background information that our offer is based on. Here are some facts you need to know:

 

• More than half of our Safeway stores in Alberta are struggling financially.  Alberta was facing financial challenges before COVID-19 and they will continue or even worsen after COVID-19. The temporary sales spike during this pandemic is not enough to fix the financial challenges that faced the Province before the pandemic, and it is not enough to help us through the next wave of financial hardship in Alberta.

 

• To help UFCW 401 understand our challenges, we want to share store financials with union leadership but UFCW 401 refuses to agree to protect this competitive information. In doing so, they refuse to acknowledge the financial challenges faced by so many of our Alberta Safeway stores.

 

• Even in the face of financial uncertainty, we are still focused on securing a strong future for our Alberta stores by investing significantly in the Safeway banner and introducing our much-needed Discount banner, FreshCo in the right communities. We can only continue to invest in the Safeway banner if we achieve a competitive agreement.

 

• Our competitors have significant advantages in their agreements. We are not asking for anything that is not already standard in the Alberta retail environment. Without a competitive offer, we cannot close these gaps and our stores will continue to suffer.

 

We need a fair agreement that balances the need to serve customers with the Discount format they want, while making sure our teammates are rewarded appropriately for their hard work.

We want to compete, we want to invest, we want to continue to grow. To do so, we must have a competitive collective agreement that allows for long term success.

Please reach out to your store manager if you have questions. We will continue to post updates on Safeway Talks.