In December 2023, we informed you about our challenge of the Arbitrator’s decision on the Wage Reopener. In our view, there were several critical errors made in the ruling. The information the Arbitrator relied on to base their decision was partially inaccurate and was not in line with the Alberta market and competitive landscape.

This decision, which rewards only top-rated teammates, has now put significant negative pressure on our business and creates future risks for all teammates. We can’t stress enough that these wage increases have put Safeway in an extremely uncompetitive position compared to the rest of the Alberta grocery industry.

The impact of the decision has made several of our stores unprofitable. As a result, we may have to make difficult choices to address this situation. It is for this reason that we continue to challenge the Arbitrator’s ruling.

What we want is a decision that is fair and market competitive which enables us to continue to run profitable stores while providing opportunities for all of our teammates well into the future.

As required, we implemented the first wage increase for top-rated teammates last August. At that time, we communicated that the second increase for top-rated teammates would occur this August. We are honouring that commitment and these teammates will receive their increase on their next pay.

We can’t stress enough that these wage increases for top-rated teammates have placed us in an extremely difficult position compared to our competitors. We will continue to be transparent in communicating the impact of the Arbitrator’s decision on our business and any difficult choices we may need to make as we move forward.