We’ve been back at the bargaining table with UFCW 401 this week. As always, we’re committed to being open and honest with you and want to ensure that you’re updated every step of the way. We know that progress to date has sometimes felt slow and challenging, but we’re hopeful that this week’s discussions are an encouraging sign of increasing momentum to continue.
As we’ve shared before, it’s our current intention to invest $200 million in the Safeway network over the next five years. However, we cannot accomplish this if we do not have the right collective agreement in place to provide stability for our business. We need stability through a number of factors to invest the money. The FreshCo expansion plans are not included in the $200 million investment. Both parties have recognized that these discussions will be difficult, and have agreed to the use of a mediator commencing this April. Together, we’re committed to coming to a fair agreement in a timely manner that is in all of our best interest.
Whether you’re a long-time Alberta native or new to the province, there’s no denying that we’ve seen incredible change. Our communities are changing, our customers are changing, and our economy is changing. And it will continue to change. This is why – now more than ever – it’s absolutely crucial that we come to a competitive agreement that is in all of our best interest.
We’ve been open in sharing that some of our Safeway stores are struggling as the retail market in Alberta continues to change. We’re seeing more cost-conscious customers who aren’t interested in our full-service Safeway model, no matter how hard you continue to work or the unparalleled customer service you provide. Cost conscious shoppers are looking for the option that best suits their needs and without a viable discount option, customers will continue to shop elsewhere. We know that it’s important to put the right stores in the right market and opening FreshCo stores will help us move in the right direction. However, FreshCo does not solve all of the issues that many Safeway stores are facing. The majority of Safeway stores are not converting to FreshCo, but without a change, will continue to struggle against our competition. This is why we must have a competitive deal for Safeway to survive in Alberta. We will continue to be faced with a significant competitive disadvantage until a fair agreement is reached.
There’s so many exciting opportunities that await us in the year ahead, and we’re hopeful that we can work with your Union and your Bargaining Committee to reach a fair collective agreement that balances all of our needs. Thank you for your continued hard work in our stores. Our true Safeway pride is alive and well in Alberta.
