Safeway’s on your side

As the backbone of our operations in British Columbia we wanted to update you on the status of our quarterly review process.

We believe the UFCW locals have a right to their views. But here is how we see it, as people dedicated to the future of this company.

To ensure a strong, viable company that can continue to provide thousands of stable jobs, we need to be competitive. That means we need to be the place our customers want to shop at, at a level of cost that allows us to operate.

And that’s why we’re looking at all our costs, at every level and in every detail of the company.

Wisely, our collective agreement provides for exactly this kind of review, when it is needed to keep this company operating. Delay will just make change more difficult and costly for everyone. We must tackle our challenges and we must do it now.

Here is what is happening:

Safeway is a proud Western Canadian brand, and we are proud of our employees

• Sobeys has operated for more than 110 years in the grocery business with many of our stores in western Canada including British Columbia
• We are in our stores every day, we know our markets and our customers and we continue to listen, learn and act

Yes, we have made some mistakes but we are taking action, including:

• Investments in lower prices to better compete;
• Work to update our product offerings to better reflect customer needs;
• Updates to our Planograms and have better communication about stock to stores;
• Continue to invest in remodels and renovations to attract more customers

Our operating and specifically our labour costs are a serious issue, and they’re putting stores at risk.

• Safeway is not immune to the economic realities we are all facing in the West
• We are facing tough competition especially from discounters and big-box stores that are driven by price and low costs
• We are taking actions to lower costs across our operations, including reducing our back office costs by over $500 million, but we must tackle our labour costs in our stores and we must do it now

We have to act quickly and work together to build a strong Safeway if we are to continue to provide good, sustainable jobs in the future.

• We all want to return Safeway to its place as one of the best grocery stores in Western Canada and we are all working hard to make this happen
• We ask you to urge the union to work with us to tackle these challenges
• Only by working together can we build a strong future for everyone who works here

SPEAK UP. MAKE SAFEWAY STRONG AND STABLE