Month: December 2024

Safeway employees want to vote on the Company’s offer

Posted on by Megan Buston

Your union has informed us that the majority of Safeway employees who participated in their survey want to vote on the Company’s offer that was presented at negotiations last week. The Union has not informed us when that vote will occur; we ask all employees to reach out to the Union to encourage that vote to happen as soon as possible. Leading into that vote, we want to ensure that you have all the relevant facts to make an informed decision.

Highlights of the offer include:

  • Four-year extension expiring in August 2029.
  • Top-rated and overscale teammates would maintain the 5% increases they received in 2023 and 2024. In addition, these teammates would receive an extra 2% increase in August 2027, and a 2% increase in August 2028. The fact remains that top-rated employees would continue to be the highest paid unionized retail workers in Alberta, making 7.5% more than the closest unionized competitor, Real Canadian Superstore.
  • In-scale teammates would receive $500 lump sum payments in August 2025, August 2026, August 2027 and August 2028. These lump sum payments are on top of the already negotiated wage increases that in-scale employees receive every 500 hours worked.
  • Increased dental trust funding.
  • Retirement allowance offering of $1000 per year of service.

What happens next?

Last week, the Company presented our offer to your Union. Yes, UFCW 401 has asked for further dates in January, but we have remained consistent in saying that we must address the outcome of the Judicial review in a timely manner. In fact, we offered UFCW 401 four full weeks to bargain between November and December. Your union selected only one week.

When you vote, we encourage you to carefully consider what we have proposed in our offer. Compare the certainty of what we have offered with the uncertainty of a complicated, lengthy legal process and a difficult bargaining in 2025 with an unknown outcome.

Our desire is for this offer to be ratified by our employees so that we can resolve this issue once and for all. A ratified agreement means that we will not roll back wages and collect overpayments, and top-rated employees will remain the highest paid unionized retail employees in the province.

Voting yes to the Company’s offer helps to secure a strong future for you, our teammates, and the Safeway business in Alberta.

Update on bargaining with UFCW 401: A disappointing outcome

Posted on by Daniela Travierso

This week, we’ve been in negotiations with your union and bargaining committee. Unfortunately, we weren’t able to come to an agreement. We’re extremely disappointed in this outcome as we made every effort to work collaboratively with your union to find a path forward, together.

We came prepared to engage in meaningful dialogue and presented an offer that provided something for all teammates. Our offer even ensured that top-rated and overscale teammates would maintain the wage increases they were given in 2023 and 2024, keeping them as the highest paid retail unionized employees in the Alberta market.

Highlights of the offer include:

  • Four-year extension expiring in August 2029.
  • Top-rated and overscale teammates would maintain the 5% increases they received in 2023 and 2024. In addition, these teammates would receive an extra 2% increase in August 2027, and a 2% increase in August 2028.
  • In-scale teammates would receive $500 lump sum payments in August 2025, August 2026, August 2027 and August 2028.
  • Increased dental trust funding.
  • Retirement allowance offering of $1000 per year of service.

Take a look at the full offer we tabled today.

This offer is market leading for unionized grocery retail in the province. We now must give our competitors time to catch up to our wages to ensure the long-term sustainability of the Safeway business in Alberta.

We strongly encourage you to connect with UFCW 401 and ask them to allow you to vote on this offer.

Alberta Safeway Extension Employer Proposals

Posted on by Daniela Travierso

EMPLOYER PACKAGE OFFER

 

BETWEEN:              SOBEYS CAPITAL INCORPORATED – SAFEWAY OPERATIONS: ALBERTA PROVINCE WIDE AGREEMENTS 

                                     RETAIL;

                                     SOUTHERN MEATS & DELI; AND NORTHERN MEATS & DELI

 

AND:                          UNITED FOOD COMMERCIAL WORKERS UNION LOCAL NO. 401

 

The following offer is without prejudice to any past, current, or future application or interpretation of the Collective Agreement.

The Employer reserves the right to add to, delete or modify this offer should it not be ratified.

Employer Proposal #1: Memorandum of Agreement

This Memorandum of Agreement forms the full and complete resolve to all outstanding issues and claims between the parties, and between the Company and the employees, with respect to:

  • the renewal of the Province Wide Collective Agreements expiring on August 9, 2025;
  • the 2023 Final Offer Selection arbitration process outlined in these collective agreements;
  • the Final Offer Selection Award of Arbitrator Mia Norrie dated November 19, 2023;
  • the Union’s application to the Alberta Court of King’s Bench for Judicial Review of the summary dismissal decision of the Alberta Labour Relations Board dated January 10, 2024;
  • the Union’s Omnibus Group and Union grievance against the Company dated July 1, 2023;
  • the Judicial Review Decision of the Alberta Court of King’s Bench dated October 18, 2024;
  • the Union’s appeal to the Alberta Court of Appeal commenced on November 8, 2024;
  • the Union’s right to apply for a stay of the Judicial Review Decision described in point (6) above, pending the outcome of the Appeal described in point (7) above;
  • the Union’s Bad Faith Bargaining and Unfair Labour Practice Complaint to the Alberta Labour Relations Board dated November 18, 2024
  • the Union’s application to the Alberta Court of King’s Bench for Judicial Review of the FreshCo Final Offer Selection Award of Arbitrator Mia Norrie dated February 1, 2021;
  • Union Grievances designated as GR-20230614-3802, 3806, and 3807;
  • Union Grievances designated as GR-20230704-3892, 3894, 3895 and GR- 20230706-3903; and
  • Union Grievances designated as GR-20221125-2377, 2378, 2379, and
  • Company defamation grievance

The parties have agreed to take this Memorandum of Agreement to their respective principals with a unanimous recommendation for ratification.

This Memorandum of Agreement when ratified, in conjunction with the previously mentioned Province Wide Collective Agreements, will form a new set of Province Wide Collective Agreements between the parties and will fully extinguish the parties’ rights to serve notice to bargain in relation to the Province Wide Collective Agreements in 2025.

The parties agree that all items in the existing Province Wide Collective Agreements including Letters of Understandings will remain in force in accordance with the Province Wide Collective Agreements or only as modified in this Memorandum of Agreement dated (Insert Date).

All changes noted in the Memorandum of Agreement are effective August 10, 2025, and not retroactive unless otherwise stated.

Any legitimate errors in this Memorandum of Agreement shall be subject to correction by the parties.

 

Employer Proposal #2: (Add New)

LETTER OF UNDERSTANDING

Between

SOBEYS CAPITAL INCORPORATED (SAFEWAY OPERATIONS)

And

UNITED FOOD AND COMMERCIAL WORKERS CANADA UNION, LOCAL NO. 401

The Company and the Union will meet in good faith to discuss cross-functional opportunities and potential management structure changes.

 

Employer Proposal #3: Letter of Understanding # 27 – Walking Stewards

Delete effective August 9, 2025, and replace with the following:

“The Employer will make four (4) lump sum contributions to the UFCW Local 401 of $375,000 on the first pay period of August 2025, 2026, 2027 and 2028. The Employer will maintain its current practice regarding requests for union leave of absences.”

 

Employer Proposal #4: Wages

Top Rated and Over Scale Wage Rates:

Notwithstanding the Judicial Review Decision of the Alberta Court of King’s Bench dated October 18, 2024, the top rated and overscale wage rates awarded by Arbitrator Mia Norrie in the Final Offer Selection Award dated November 19, 2023, shall be deemed to have been incorporated into the Province Wide Collective Agreements effective as of August 7, 2023. Consequently, no wage overpayments will result from the Company’s decision to implement these wage rates prior to the release of the Judicial Review Decision.

Wages:

All active top-rate and over-scale employees on the payroll of the Employer on the following effective dates, shall receive:

Effective August 8, 2027

2% wage increase Effective August 13, 2028

2% wage increase

All active in-scale employees on the payroll of the Employer on the following effective dates, shall receive:

Effective August 10, 2025

Five-hundred-dollar ($500.00) lump sum payment, less statutory deductions. Effective August 9, 2026

Five-hundred-dollar ($500.00) lump sum payment, less statutory deductions.

Effective August 8, 2027

Five-hundred-dollar ($500.00) lump sum payment, less statutory deductions. Effective August 13, 2028

Five-hundred-dollar ($500.00) lump sum payment, less statutory deductions.

The lump sum payments shall be paid within thirty (30) calendar days from the effective dates set out above.

The words “on the payroll of the Employer” shall include all employees who are currently on vacation, authorized leave of absence, sick leave, injury leave, Short Term Disability, Long Term Disability, Workers’ Compensation, maternity leave, or parental leave. Employees on a bona fide leave shall receive their lump sums upon their return from leave.

 

Employer Proposal # 5: Article 22 – Expiration and Renewal

Add the following:

The parties agree to a four (4) year extension of the current Province Wide Collective Agreements between Sobeys Capital Incorporated (Safeway Operations) and UFCW Local No. 401 which will all have expiry dates of August 11, 2029.

BP 4 -B- Amend the language in the Retail Article 7.1, Northern Meats Article 8.1, and Southern Meats 7.1

Funeral/Bereavement Leave

In the event of death in the immediate family of an employee, the employee will be granted leave of absence with pay, with consideration given to travel time for the purpose of attending the funeral. The length of such absence shall be at the discretion of the Employer. The term “immediate family” shall mean: spouse, parent/step parent, child, brother, sister, mother-in-law, father-in-law, sister-in- law, brother-in-law, son-in-law, daughter-in-law, grandmother, grandmother-in- law, grandfather, grandfather-in-law, and grandchildren, or any relative living in the household of the employee. In the event of the demise of an aunt or uncle, nephew or niece, an employee will be granted one (1) day leave of absence with pay to attend the funeral.

Notwithstanding the foregoing, if the death is a case of a spouse, father, mother, sibling, or child, the employee shall be entitled to, up to one (1) week’s leave of absence with pay at the time of bereavement.

It is understood that in the case of a part-time employee, the time off, with pay, shall be determined on the basis of the hours that the employee was originally scheduled to work during the leave.

Common law, adult interdependent partner, and same sex spouses are to be recognized by the Employer for the provisions of this article.

An employee’s day off will not be used to circumvent funeral/bereavement leave.

In addition to the foregoing, an employee shall be entitled to any unpaid leave they are eligible for under Employment Standards legislation including bereavement leave for a person the employee is not related to but considers to be like a close relative.

BP3 -B- Dental Funds:

The Company agrees to increase the dental contributions listed in Article 8.10 of the Retail CBA, Article 20 of the Northern Meats CBA, and Article 8.15 of the Southern Meats CBA by one ($0.01) cent each year of the contract. Effective August 10, 2025, contributions will increase to forty-four ($0.44) cents per hour, effective Augst 9, 2026, contributions will increase to forty-five ($0.45) cents per hour, effective August 8, 2027, contributions will increase to forty-six ($0.46) cents per hour, and effective August 13, 2028, contributions will increase to forty-seven ($0.47) cents per hour.

BP3-D- Retirement Allowance

 

Add New Letter of Understanding: Retirement Allowance

LETTER OF UNDERSTANDING

Between

SOBEYS CAPITAL INCORPORATED (SAFEWAY OPERATIONS)

And

UNITED FOOD AND COMMERCIAL WORKERS CANADA UNION, LOCAL NO. 401

 

At the Employer’s discretion, employees in certain stores may be offered a retirement allowance once during the life of the Collective Agreement, expiring August 11, 2029.

The features of the retirement allowance will include:

  • The retirement allowance may be offered to Full-Time and Part-Time employees (excluding Pharmacy Assistants, Registered Pharmacy Technicians, Bakers, Cake Decorators, and Cutters).
  • The Company reserves the right to make the final determination as to the number of employees who may participate in the program and their departure dates. Where the Company approves a number of applications in a particular store and a particular classification, those approvals will be granted based on
  • The retirement allowance will be calculated as follows:
  • One-thousand ($1000.00) dollars for each full year of continuous service, less statutory deductions.
  • In the event an employee is absent on an approved leave of absence, they shall receive their retirement allowance, upon their full return to work, provided they return within twenty-four (24) months of their retirement allowance being approved.
  • Employees who receive the retirement allowance will not be eligible for any credit for previous experience, if rehired at a later date.

THE EMPLOYER RESERVES THE RIGHT TO ADD TO, DELETE OR MODIFY ANY OF THE FOREGOING PROPOSALS.

RESPECTFULLY SUBMITTED ON BEHALF OF SOBEYS CAPITAL INCORPORATED – SAFEWAY OPERATIONS – ALBERTA.

Sitting Down With UFCW 401

Posted on by Megan Buston

We are pleased that your Union, UFCW 401, has agreed to meet with us from December 16 – 20 to find a path forward and address the outcome of the Judicial Review, including the potential wage rate reversion and collection of overpayments.

We strongly believe that we can reach a fair agreement that will meet the needs of our teammates and help ensure the long-term success of the Safeway banner in Alberta.

We are going into these discussions committed to finding a resolution, and we are hopeful that your Union is, too. With your Union’s support, we are confident that we can reach an agreement before the holidays and have it ratified in a timely fashion.

We’ll keep sharing updates as discussions progress and we encourage you to stay informed, too. Be sure to check out the latest FAQs for up-to-date information, and connect with your Store Manager if you have questions.

Frequently Asked Questions – Alberta Safeway Judicial Review Next Steps

Posted on by Megan Buston

Updated December 2, 2024

Q: What is a Final Offer Selection (“FOS”) and how did it affect me?

A: Final Offer Selection (FOS) is the legal process that was written into the Collective Agreement after the last round of negotiations. The language in the Collective Agreement was agreed to by the Union and the Company and was ultimately ratified by employees in 2020.

The FOS language in the Collective Agreement states that if the Company and the Union are unable to come to an agreement regarding top-rate and overscale wages for the 2023 and 2024 wage reopener, an Arbitration will occur. The Arbitrator essentially acts as the ‘judge and jury’ and must choose between the Union’s wage position or the Company’s wage position.

The Final Offer Selection Decision came out on November 20, 2023.

 

Q: What is a Judicial Review and why did the Company pursue it?

A: A Judicial Review is an application to the Court to have an arbitration award overturned.  We challenged this award because the FOS decision put significant financial pressure on our business and if left unaddressed, would have continued to impact the competitiveness and long-term viability of Safeway.

The Judge overturned the FOS decision in part because of inaccurate and irrelevant information submitted by your Union. The court recognized that the Arbitrator’s wage decision was “based on facts not supported by the evidence.” Further, the Judge recognized that the Arbitrator’s decision was “unreasonably” based on market comparators of which “none are part of Sobeys’ competitive climate.”

We had no choice but to take action on the FOS decision to protect the Safeway business.

 

Q: What did the Court order?

A: The Court overturned the FOS decision and ordered the FOS be reheard. In the Judge’s ruling, he specifically noted that the Arbitrator unreasonably based the decision on market comparators which were not part of our competitive climate. In addition, the Arbitrator based her decision on inaccurate information provided by the Union with respect to one of our competitors.

 

Q: If the Company reverts wages back to pre FOS rates, can they legally collect the over payment and for what period of time?

A: Yes. With the overturn of the FOS decision, it means the decision is no longer in place and the Company can revert wages to what they were prior to the award. In addition, the Company can collect the over payment from August 2023 up to the date of the Judicial Review (October 18, 2024).

 

Q: The Union has stated they are appealing the Judge’s decision, what does this mean?

A: The Union has made an application to the Court of Appeal. This means that another hearing will take place. The Union is asking that the Court of Appeal reinstate the Arbitrator’s ruling or, in the alternative, have the FOS go back to the same Arbitrator.

 

Q: How long can the Appeal process take?

A: Hearing dates for matters such as these typically take a long time to get booked. Our best guess is that we will be booking dates into the fall/winter of 2025.

This is yet another reason why we believe it is in the best interest of all teammates for the Company and the Union to meet to discuss a resolution that could benefit all parties involved.

 

Q: Who are the relevant competitors for Safeway in Alberta?

A: There are many competitors in Alberta in the grocery industry. In the full-service grocery segment, the major competitors are Sobeys, Safeway, Walmart, Real Canadian Superstore, Co-Op and Save On, amongst others.

 

Q: Why isn’t Metro in Ontario a relevant comparator?

A: Metro operates grocery stores in Ontario and Quebec. They do not compete in the Alberta grocery market.

 

Q: When is the earliest that bargaining for a new Collective Agreement could commence?

A: The parties can voluntarily agree to commence bargaining for a new Collective Agreement at any time. But the only way one party can force the other to the table is by serving a notice to commence collective bargaining. The Collective Agreement provides that the earliest either party can serve notice to commence collective bargaining is 120 days prior to the expiry of the Agreement (August 9, 2025), which would be April 11, 2025.

Q: When is the earliest a strike could occur?

A: A legal strike can only take place after a legal strike vote has occurred. A legal strike vote can only take place after all of the following has occurred: a notice to commence bargaining has been provided, the Collective Agreement has expired (August 9, 2025) and bargaining has occurred.

 

Q: Will the Company revert wage rates and take back overpayments?

A: We need to act quickly to address this challenging situation. We have advised UFCW 401 that we will hold off on taking any action on wages until January 26, 2025, in order to provide time for the parties to find a solution. If one cannot be found, the wages would revert on January 26, 2025, and the Company will seek to collect the overpayments.

 

Q: How will the collection of the overpayments work?

A: The Company will follow its normal process of sending individual letters to employees, outlining the overpayment and providing various options for repayment.

 

Q: I don’t want my wage rate to change or an overpayment to be collected, what can I do?

A: It is very important you speak with your Union representative and encourage them to negotiate with the Company.

 

Q: Can the Company and the Union agree to extend the Collective Agreement before it expires in August?

A: Yes, we can extend the Collective Agreement now, provided both parties agree to negotiate.

 

Q: Can the parties finalize the 2023/2024 wage rates for top-rated and overscale employees as part of those negotiations?

A: Yes. The parties can finalize those wage rates as part of their negotiations instead of continuing with the Court proceedings and potentially having to do another Final Offer Selection (FOS) arbitration.

 

Q: The Union keeps asking if I am prepared to go on strike and implying that the strike can occur after the Company rolls back wages on January 26, 2025. Does this mean a strike will happen on January 27, 2025?

A: No. Regardless of whether an agreement to extend the contract is achieved or not, you are unable to legally go on strike on January 27, 2025. As a reminder, the Collective Agreement does not expire until August 9, 2025. Any strike before then would be illegal and the consequences of participating in this type of illegal strike activity would be discipline (up to and including the possibility of termination) and potential damages against the Union.

 

Q: Can the Union call a strike after the Collective Agreement expires in August to restore the 2023/2024 wage increases that were overturned by the Judge?

A: No. The Union cannot call a strike to restore the 2023/2024 wage increases. The Union can only call a strike to determine what will be included in the new Collective Agreement (i.e. the wage rates for 2025 and going forward). If the parties cannot agree on the 2023/2024 wage increases, they will have to continue with their Court proceedings and potentially conduct a new FOS arbitration.

 

Q: Can the Union call a strike before the Collective Agreement expires if the Company starts to collect the overpayments from the top-rated and overscale employees? 

A: No, even if the Union believes the Company’s collection activities are illegal, it cannot call a strike. The Labour Relations Code does not permit a union to strike whenever it thinks an employer has done something wrong. There are legal procedures for raising objections that must be followed. That’s why our Collective Agreements have a grievance procedure.

 

Q: The Union has advised that they are appealing the Judge’s decision to the Court of Appeal. What is the Court of Appeal?

A: The Court of Appeal is the highest level of Court in Alberta. It hears appeals from decisions made in the lower Courts, such as the Judge’s decision on the Company’s Judicial Review application.

 

Q: How long could it take for the Union’s appeal to be heard and decided by the Court of Appeal?

A: There is no set timeline, but it could take up to a year for the appeal to be heard and even longer for it to be decided.

 

Q: Is the Court of Appeal the last step in this process?

A: Unfortunately, no. If either party is unhappy with the decision of the Court of Appeal, they could seek leave to appeal to the Supreme Court of Canada. The Supreme Court of Canada would then have to decide whether it would hear the matter. This would likely take many more months.