As we return to the bargaining table this week, we want to reaffirm our unwavering commitment to reaching fully recommended agreements. We’ll continue to work towards agreements that allows us to build a strong foundation for the future of Safeway in British Columbia.
For the past few months, our bargaining has been largely focused on resolving some smaller issues. As we move into the next phase of negotiations, the parties will be focused on discussing more complex issues and finding common ground.
We face some significant challenges in the coming years. Minimum wage increases announced for June 1 will have a huge cost impact on our business. Since 2018, minimum wage has increased by 32%. In addition, we’re facing discount competitors who continue to attract more customers. FreshCo has seen market share growth as some customers seek out price over the services offered at Safeway. All of these challenges will have an impact on negotiations.
While we’re committed to making sure our teammates are rewarded appropriately for their hard work, we must maintain the viability of the Safeway network in this province.
We’ve already invested significantly in the Safeway network and we’re prepared to invest more, however, this will only be possible under the right economic conditions.
The parties must reach an agreement that strikes the right balance between the needs of our teammates, and the operational and competitive requirements of our stores. This is how we’ll achieve long-term success.
We’re looking forward to continuing positive, cooperative conversations with the unions and bargaining committees over the coming weeks.
We’ll keep sharing updates from the bargaining table and encourage you to stay informed as negotiations continue.
As we work through collective bargaining, thank you for your hard work and focus on exceeding each customer’s expectations.