Author: Sudhanshu Rewari

This week, the Company’s bargaining committee was back at the table with UFCW 401. Both parties continued to discuss potential language changes to the collective agreement, and while progress is slow, items are being agreed upon and refined. Our bargaining goals remain the same; fair and competitive collective agreements. Our business goals remain the same; to invest in the future of Safeway and introduce FreshCo in the right Alberta markets.

We’ve been open with you regarding the challenges that some of our Safeway stores are facing in the province. It’s no secret that the Alberta economic climate is changing – and it will continue to change. It’s up to us to be agile and innovate to change alongside it so we can continue to serve our communities.

With the changing economy, many of our Safeway stores are simply in the wrong markets. We’re seeing more value driven shoppers who are focused on getting the best items at the most affordable costs. No matter how hard we work, we simply cannot meet the needs of these discount shoppers with our full-service Safeway model. We can, however, exceptionally serve these same customers with our proven Discount model. FreshCo has been well received across Western Canada. Our B.C. and Manitoba customers are embracing the new stores, and we’re certain our Saskatchewan customers will this summer. We’re confident that Alberta customers will welcome FreshCo, too.

We believe in Safeway, and we know that it is still the right fit in many communities. We’re committed to continuing investing in Safeway and bolstering our brand in the markets where it makes sense, providing customers with the shopping options they’re looking for.

In uncertain times, we need to be able to compete with a fair collective agreement in order to achieve success. We take collective bargaining seriously and we’re committed to moving the conversation forward so we can win, together. As we’ve shared with you before, should a strike take effect, it could continue for a long time. This means frustrated customers, happy competitors, damage to our reputation, significant lost sales, no capital investment, and at the very core, teammates who are forced to disrupt their lives and face financial insecurity for their families. A strike will not solve the key issue we face – many of our Safeway stores will still be in the wrong markets. Striking will simply worsen an already challenging situation.

Thank you for your continued hard work in our stores and commitment to our customers. We look forward to sharing more progress with you soon on Safeway Talks.

As we continue our focus on reducing plastic in our stores, we couldn’t be more excited to officially introduce our new reusable mesh produce bags in all Safeway stores. Our reusable produce bags not only cut down on the amount of single-use plastics nationally, but globally, as they’re made from plastic bottles recovered from the world’s oceans.

About the bags:

• Come in a pouch containing four reusable, black, see-through mesh bag (each weighing 10g)
• Dishwasher safe and machine washable
• Made from 100% recycled polyethylene terephthalate (rPET) with each bag comprised of 50% recycled plastic
• 5% of sales will be reinvested in water-related research and initiatives

As of August 2019, 1.9 million plastic bottles were recycled to make reusable mesh produce bags for all our banners. The rPET fabric used to make our reusable bags also has a carbon footprint 50% lower than organic cotton, and 75% lower than ordinary polyester. Plus, they require 86% less water and 70% less energy to produce than polyester. Pretty awesome, if you ask us!

Keep an eye out for reusable mesh produce bags in your store, and stay tuned to Safeway Talks for more sustainability success stories!

Team,

Like all of you, I was deeply saddened to hear of Doug O’Halloran’s passing. As President of UFCW 401, Doug served as the proud voice of 401 for more than 30 years and was a true partner. Doug provided his members with great support and guidance. Throughout his tenure, he significantly contributed to the labour movement and touched the lives of so many working families all across the province.

It goes without saying that Doug’s tenacity will always be well respected. Doug was a true leader – admired by many for his unwavering dedication to his members and his passion to advocate for them.

I’ve known Doug for more than 20 years and will always remember him for his respect for the labour process and true advocacy for his members. I know Doug will be remembered not only for the meaningful work he achieved, but also for the foundation he has laid for UFCW 401.

Our company mantra is that we are a family nurturing families and we know times like this can be incredibly difficult. On behalf of the entire Sobeys Inc. family, I send our deepest condolences to Doug’s family and friends during this difficult time.

 

Respectfully,

 

Simon Gagne

EVP, Human Resources

Sobeys Inc.

Safeway teammates,

As you know, we’ve been in collective bargaining with UFCW 401 since March. We’ve consistently kept you informed with open and honest updates from the bargaining table and have been clear about our objectives from the very beginning – securing a strong future for Safeway and meeting customer preferences by introducing FreshCo to the right Alberta markets. These goals have not, and will not, change.

Over the past week UFCW 401 has been distributing a survey in stores in preparation for a strike in Alberta.  We ask that you carefully consider what a strike will mean for Safeway. The retail climate in Alberta is challenging enough. Many of our stores continue to struggle. Know that if a strike takes effect, it could continue for a long time. This means frustrated customers, happy competitors, damage to our reputation, significant lost sales, no capital investment, and at the very core, teammates who are forced to disrupt their lives and face financial insecurity for their families. We also want to be clear that a strike will not solve the key issue we face – many of our Safeway stores are unprofitable simply due to the customers and the markets that they serve. Striking will simply worsen an already challenging situation.

A strike cannot and will not change the market in Alberta. It would simply distract all of us, on both sides of the table, from addressing the problems in our stores. And the longer we wait to solve them, the more difficult they become to solve. At some point, all strikes will end, and the issues before us will still exist.

We’re committed to winning at Safeway. We’ve been clear that there’s so much opportunity for Safeway in Alberta. We believe in the full service model and we’re prepared to continue investing in Safeway’s future – but we need a fair collective agreement and the right market factors to do so. We will continue to come to the bargaining table prepared to work towards a fair agreement and a smooth introduction of FreshCo. Just last week, employees voted to ratify an agreement for our Alberta Gas Bars. Progress is possible, and we’re dedicated to working with our Safeway teammates and UFCW 401 to accomplish a positive result for you, too.

We ask that you continue to trust in the collective bargaining process. Unfortunately, things like this sometimes take time. But rest assured that we are just as committed to a fair agreement as the day bargaining began.

Thank you for your continued hard work in our stores and patience through negotiations. Your Safeway pride never ceases to amaze us and we’re excited to continue driving growth together in Alberta. We will keep you up to date as bargaining progresses.

 

Scott Chollak

Vice President Operations, Alberta

Good morning team,

I know you’re all preparing for a busy day and Thanksgiving weekend ahead. We’re already seeing incredible store readiness and enthusiasm, and we have plans to visit several more stores. I can’t wait to see you all in action!

Thank you for continuously striving to exceed the expectations of every customer that chooses to spend their hard earned money in our stores. We appreciate your hard work and support not only this Thanksgiving weekend, but every day of the year. You continue to create incredible customer experiences and find new and unique ways to generate success.

Although Thanksgiving only comes once a year, I like to live with a spirit of gratitude. Have a very happy Thanksgiving enjoying quality time with friends and family.

 

All the best,

Scott

Vice President Operations, Alberta

Last week, the Company’s bargaining committee and UFCW 401 were back at the table to resume collective bargaining. We’re committed to continue keeping you informed with our progress at the table.

Discussions largely surrounded health and safety within the Safeway work environment. Our conversations focused on store security, customer interactions and health and safety concerns.

Earlier this month, we shared details with you regarding multiple enhancements to store security within the Alberta Safeway network. The health and safety of our teammates and our customers will always be our top priority. We’re pleased that UFCW 401 shares this view. We will continue taking all steps necessary to ensure that our stores remain a safe space for you.

While we were able to discuss these safety items that are important to us all, we were disappointed to see the leaflets that UFCW 401 has recently been sharing in our Safeway stores that question if our plans to turn around the company and win in our stores are working. Over the next five years, we’re prepared to invest $200 million into the Alberta Safeway network, with the right market factors and a collective agreement that allow us to effectively compete in the province.

We know that some of our full-service stores are operating in the wrong markets. In markets where our Safeway stores can’t win, we’re ready to introduce our proven discount model to customers. This will help us have a stronger, healthier store network overall, and connect better with our customers. We’re ready to execute a winning plan that will help turn our Alberta store network around.

We need to start looking forward, together. We’re optimistic that we can build a strong future for Safeway in Alberta. We are back at the negotiating table early in November and will continue to share updates from the table.