We continue to be dedicated to keeping you informed with relevant updates directly from the bargaining table. Last week, we shared that progress with UFCW 401 has been slow and we haven’t achieved the momentum that we’ve been hoping for. The Union has been distracted from proposals that impact you and your teammates. Instead of working collaboratively to come to a fair agreement, the Union continues to slow the process down and focus on pulling us apart.
After bargaining had concluded last week, we received an unfair labour practice complaint brought on by UFCW 401. The unfair labour practice complaint alleges that the Company has engaged in activity that involves prohibited conduct under the Alberta Labour Code. The Union expressed particular concerns with:
We were open and honest, both with the Union and our teams, on the Southland Crossing Safeway closure. Store closures are never easy decisions to make. We frequently review our real estate assets and the decision to close this store was in line with our normal course of business. Various factors were carefully considered and unfortunately, despite the hardworking efforts of the store team, the store had been unprofitable for a number of years, sales were stagnant and not expected to improve, and the store’s lease was up for renewal. The decision to close this store was not made until the week of May 6, 2019, and had no relation to ongoing bargaining. As always, we are so grateful for the dedicated service of the Southland Crossing team and will continue to work closely with impacted employees, and their respective unions, to ensure all collective agreement terms are met.
We have always been eager to discuss store financials with Union leadership in an attempt to advance bargaining. We want the Union to fully understand the reality of the financial state of many of our underperforming Safeway stores. UFCW 401 has refused to sign a non-disclosure agreement that is necessary to protect confidential competitive information. We are prepared to provide Union leadership with financial information to further demonstrate why it is necessary that we introduce FreshCo in Alberta. As the Company pointed out in response to the Union complaint, detailed evaluations and final decisions on which stores will be converted have not yet been finalized, however, the candidates for conversion all fit the same profile: they are currently unprofitable, their sales are flat or declining, they are in neighbourhoods where market research indicates that the majority of consumers are cost conscious, and they are in otherwise solid grocery retail locations.
We’ve approached every bargaining session with clear goals and objectives and a commitment to coming to a fair agreement that balances everyone’s needs and interests. UFCW 401’s unfair labour practice complaint is without merit and will only stall our progress towards securing new collective agreements. We have respectfully requested that the Union’s unfair labour practice complaint be dismissed.
Now more than ever, we have to stick together and stay true to our Safeway values. Our bargaining committee will continue to come to the table prepared to advance negotiations. Thank you, again, for your continued patience, hard work, and commitment to Safeway.
Click here to read the Company’s full response to UFCW 401’s complaints.
