No deal reached with UFCW 401

Since the results of the vote have been released, we continue to hear from so many of our teammates that they wanted this deal. The mood is incredibly somber and the disappointment is palpable.

It’s clear to all of us that UFCW 401 never wanted to reach a deal. They told us in December that they wanted to bargain, but they only showed up to fight. Keep in mind…

  • The union provided inaccurate and irrelevant information as evidence in the 2023 wage reopener.
  • The union lied repeatedly and spread so much misinformation prior to determining a vote date. And then,
  • The union ran a completely biased vote – even the ballots were inappropriate.

UFCW 401 didn’t want a deal from day one. They wasted our time, and more importantly, they wasted your time. We’re astonished that they did this to you, to us all. Unfortunately, the union controlled the bargaining process and it’s outcome.

What happens next…

We always do what we say we’re going to do, and we’ve been transparent through every step of this process. Given that our offer wasn’t ratified, the Company will now implement the outcome of the Judicial Review.

  • Wage rates for top-rated and overscale teammates will be rolled back 6.5%, aligned with our offer in the 2023 wage reopener that included a 1.5% wage increase in 2023 and 2% in 2024. This change will be reflected on your February 13, 2025, pay.
  • The Company will seek to collect overpayments from August 2023 to October 18, 2024 (the date of the Judicial Review). In the coming weeks, impacted teammates will receive a letter outlining the overpayment, including options for the repayment.

Like we’ve shared with you before, we do not take these decisions lightly. This is necessary to protect the long-term viability of Safeway so we can ensure a strong future for all of our teammates in this province.

Online voting starts today — Here’s what you need to know!

Online voting on the Company’s offer is now open!

You have until tomorrow, January 23 at 11:59 p.m. to cast your vote.

If you need information on how to vote online, please reach out directly to your union rep.

We strongly encourage you to exercise your right to vote and make your voice heard. Don’t let someone else make this important decision for you. Remember, your vote is confidential and the Company will not (and never would) ask you to share your vote. Anyone that tells you otherwise is misinformed.

As a reminder, here’s the highlights of the deal:

  • Four-year extension expiring in August 2029.
  • Top-rated and overscale teammates would maintain the 10% wage increase they received in the 2023 FOS decision. In addition, these teammates would receive an extra 2% increase in August 2027, and a 2% increase in August 2028.
  • In-scale teammates would be eligible to receive a combined total of up to $2,000 in lump sum payments over the four-year extension. These in-scale teammates would receive $500 lump sum payments in August 2025, August 2026, August 2027, and August 2028. In-scale teammates who reach the top-rate of the scale through their hours worked, will join their top-rated colleagues in being the highest-paid unionized retail employees in the province.
  • Increased dental trust funding, which is part of an industry leading benefit package provided at no cost.
  • Retirement allowance offering of $1,000 per year of service. Within the next four years, the Company would provide a one-time opportunity for interested teammates to apply for consideration to receive a retirement allowance. Both full-time and part-time teammates could apply. Should the teammate be selected, they would be paid a bonus of $1,000 per year of service. For a teammate with 35 years of service, this would be a $35,000 payment, less statutory deductions.

Our offer ensures you continue to be the highest-paid unionized grocery employees in Alberta. Despite what the union is saying, we want to be clear that this is our final offer and there will be no more bargaining dates scheduled. Also, if the offer is accepted, wages will not be reverted and overpayments will not be collected.

If the offer is not accepted, we have no choice but to act on the Judicial Review ruling and roll back wages and recover overpayments.

Once the voting period closes, demand full transparency from UFCW 401 on the outcome of the vote. Don’t let your vote be cancelled.

Take the time to carefully consider what the Company is offering. It’s the best option to help secure a strong future for you and for our Safeway business in Alberta.

The ratification vote is this week — Here is what you need to know!

In December, the Company and UFCW 401 were at the bargaining table to find a path forward that would address the outcome of the Judicial Review. We made an offer and you asked your union to let you vote on it. Votes are scheduled from January 16 to 23.

In recent communications from UFCW 401, we are disappointed to hear that the union may not count your vote or honour the results. If the offer is not accepted, we have no choice but to act on the Judicial Review ruling and roll back wages and recover overpayments. Our offer provides a better path forward for all teammates and Safeway. Don’t let UFCW 401 cancel the results of your vote.

Our offer ensures you continue to be the highest-paid unionized grocery employees in Alberta. Despite what the union is saying, we want to be clear that this is our final offer and there will be no more bargaining dates scheduled. Also, if the offer is accepted, wages will not be reverted and overpayments will not be collected.

Here are the highlights of the deal:

  • Four-year extension expiring in August 2029.
  • Top-rated and overscale teammates would maintain the 10% wage increase they received in the 2023 FOS decision. In addition, these teammates would receive an extra 2% increase in August 2027, and a 2% increase in August 2028.
  • In-scale teammates would be eligible to receive a combined total of up to $2,000 in lump sum payments over the four-year extension. These in-scale teammates would receive $500 lump sum payments in August 2025, August 2026, August 2027, and August 2028.
  • In-scale teammates would be eligible to receive a combined total of up to $2,000 in lump sum payments over the four-year extension. These in-scale teammates would receive $500 lump sum payments in August 2025, August 2026, August 2027, and August 2028. In-scale teammates who reach the top-rate of the scale through their hours worked, will join their top-rated colleagues in being the highest-paid unionized retail employees in the province.
  • Increased dental trust funding, which is part of an industry leading benefit package provided at no cost.
  • Retirement allowance offering of $1,000 per year of service. Within the next four years, the Company would provide a one-time opportunity for interested teammates to apply for consideration to receive a retirement allowance. Both full-time and part-time teammates could apply. Should the teammate be selected, they would be paid a bonus of $1,000 per year of service. For a teammate with 35 years of service, this would be a $35,000 payment, less statutory deductions.

What should you do now?

  • Review the meeting notice posted by UFCW 401 to know where and how to vote. If you are not sure where to get this information, ask your Union Rep or your Store Manager.
  • Exercise your vote and make your voice heard. Don’t let someone else make this important decision for you.
  • Once the vote is conducted, demand full transparency from UFCW 401 on the outcome of the vote. Don’t let your vote be cancelled.

Take the time to carefully consider what the Company is offering. It’s the best option to help secure a strong future for you and for our Safeway business in Alberta.

UFCW 401 is not putting you first

We’re disappointed by the recent advertisements put out by your union, UFCW 401. Not only are they riddled with false statements intended to damage our reputation, but are meant to take attention away from what matters most right now — understanding Safeway’s offer and getting prepared to exercise your right to vote on it.

We can’t stand by and accept the union’s slander. This is why we’ve sent the below letter to UFCW 401 leadership and we will respond to their defamatory public campaign with legal action.

It’s unfortunate that your union is not acting in your best interest.

We encourage you to ask them why.

 


 

January 8, 2025

To: Thomas Hesse, President, UFCW Local 401

Re: Alberta Safeway

We are disappointed to see that UFCW 401 has resorted to advertisements filled with inflammatory rhetoric and blatantly false statements. We cannot understand why the union that claims to represent workers’ best interests would actively engage in conduct that would dissuade Albertans from shopping in our stores? Fewer customers mean fewer available hours. It makes no sense that you would take actions that would hurt our teammates. We demand that you discontinue these harmful activities immediately.

It is unlawful to make false allegations with the intent to damage a reputation or brand so as a result, we will be responding with legal action.

We will also set the record straight with our teammates. Rather than spending teammate dues advocating for their best interests, UFCW 401 is wasting resources on advertisements that will result in negative impacts to our teammates as well as the long-term wellbeing of our business.

The facts are clear: Top-rated Safeway teammates are the highest paid unionized grocery employees in Alberta. Our offer enables teammates to maintain those wage rates while the rest of the market catches up. Why would the union encourage members to vote against an offer that allows them to continue to be top wage earners?

Our offer balances the needs of all teammates while addressing the long-term health of Safeway’s business in Alberta. Contrary to the union’s approach, we remain committed to

transparent and truthful communication and will be encouraging our teammates to vote “yes” on the deal before them.

If the offer is rejected, top-rated teammates wages will be reverted and they will be left with an uncertain outcome from the various different legal proceedings ahead of us. For the in-scale teammates, they lose out on any guarantee of additional money in the coming years. Our offer allows teammates to maintain what they have now and provides certainty for the next four years. Pushing them towards any other outcome makes no sense for any of our teammates.

Best regards,

Andrew Follwell, VP Labour Relations

The ratification vote is coming — make sure you know the facts!

In December, the Company and UFCW 401 were at the bargaining table to find a path forward that would address the outcome of the Judicial Review.

The Company presented a market-leading offer that meets the needs of our teammates, while addressing the competitive issues that our Alberta Safeway business is facing. Our offer even ensured that top-rated and overscale teammates would maintain the wage increases they were given in 2023 and 2024 and would not require teammates to repay overpayments. We are pleased to hear that you will have a chance to vote on this offer.

To make an informed decision, make sure you know the facts.

Here are the highlights of the deal:

  • 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 be eligible to receive a combined total of up to $2,000 in lump sum payments over the four-year extension. These 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 teammates would receive for every 500 hours worked. It’s worth noting that if, during the life of the extension, an in-scale teammate reaches the top-rate of the scale through their hours worked, they would join their top-rated colleagues in being the highest-paid unionized retail employees in the province.
  • Increased dental trust funding.
  • Retirement allowance offering of $1,000 per year of service. Within the next four years, the Company would provide a one-time opportunity for interested teammates to apply for consideration to receive a retirement allowance. Both full-time and part-time teammates could apply. Should the teammate be selected, they would be paid a bonus of $1,000 per year of service. For a teammate with 35 years of service, this would be a $35,000 payment, less statutory deductions. Please see here for further information on the retirement allowance.

Keep a lookout for voting information

The union will be sending information regarding how they intend to conduct the ratification vote.  We encourage you to participate and vote on this important deal.

Voting “yes” would mean that the Company won’t roll back wages or collect overpayments. This also means that top-rated teammates would keep their status as the highest-paid unionized retail employees in the province, making 7.5% more than the closest unionized competitor, Real Canadian Superstore.

Voting “no” would mean that we would have no choice but to implement the outcome of the Judge’s decision and revert wage rates for top-rated and overscale teammates as we have previously communicated. For many top-rated teammates, this will result in up to a 10% total reduction in pay, which can represent over a $2 per hour difference.

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.

Take the time to carefully consider what the Company is offering. It’s the best option to help secure a strong future for you and for our Safeway business in Alberta.

Thank you for your continued patience during this process.