Category: Feature

No deal reached with UFCW 401

Posted on by Daniela Travierso

Since the results of the vote have been released, we continue to hear from so many of our teammates that they wanted this deal. The mood is incredibly somber and the disappointment is palpable.

It’s clear to all of us that UFCW 401 never wanted to reach a deal. They told us in December that they wanted to bargain, but they only showed up to fight. Keep in mind…

  • The union provided inaccurate and irrelevant information as evidence in the 2023 wage reopener.
  • The union lied repeatedly and spread so much misinformation prior to determining a vote date. And then,
  • The union ran a completely biased vote – even the ballots were inappropriate.

UFCW 401 didn’t want a deal from day one. They wasted our time, and more importantly, they wasted your time. We’re astonished that they did this to you, to us all. Unfortunately, the union controlled the bargaining process and it’s outcome.

What happens next…

We always do what we say we’re going to do, and we’ve been transparent through every step of this process. Given that our offer wasn’t ratified, the Company will now implement the outcome of the Judicial Review.

  • Wage rates for top-rated and overscale teammates will be rolled back 6.5%, aligned with our offer in the 2023 wage reopener that included a 1.5% wage increase in 2023 and 2% in 2024. This change will be reflected on your February 13, 2025, pay.
  • The Company will seek to collect overpayments from August 2023 to October 18, 2024 (the date of the Judicial Review). In the coming weeks, impacted teammates will receive a letter outlining the overpayment, including options for the repayment.

Like we’ve shared with you before, we do not take these decisions lightly. This is necessary to protect the long-term viability of Safeway so we can ensure a strong future for all of our teammates in this province.

Online voting starts today — Here’s what you need to know!

Posted on by Daniela Travierso

Online voting on the Company’s offer is now open!

You have until tomorrow, January 23 at 11:59 p.m. to cast your vote.

If you need information on how to vote online, please reach out directly to your union rep.

We strongly encourage you to exercise your right to vote and make your voice heard. Don’t let someone else make this important decision for you. Remember, your vote is confidential and the Company will not (and never would) ask you to share your vote. Anyone that tells you otherwise is misinformed.

As a reminder, here’s the highlights of the deal:

  • Four-year extension expiring in August 2029.
  • Top-rated and overscale teammates would maintain the 10% wage increase they received in the 2023 FOS decision. In addition, these teammates would receive an extra 2% increase in August 2027, and a 2% increase in August 2028.
  • In-scale teammates would be eligible to receive a combined total of up to $2,000 in lump sum payments over the four-year extension. These in-scale teammates would receive $500 lump sum payments in August 2025, August 2026, August 2027, and August 2028. In-scale teammates who reach the top-rate of the scale through their hours worked, will join their top-rated colleagues in being the highest-paid unionized retail employees in the province.
  • Increased dental trust funding, which is part of an industry leading benefit package provided at no cost.
  • Retirement allowance offering of $1,000 per year of service. Within the next four years, the Company would provide a one-time opportunity for interested teammates to apply for consideration to receive a retirement allowance. Both full-time and part-time teammates could apply. Should the teammate be selected, they would be paid a bonus of $1,000 per year of service. For a teammate with 35 years of service, this would be a $35,000 payment, less statutory deductions.

Our offer ensures you continue to be the highest-paid unionized grocery employees in Alberta. Despite what the union is saying, we want to be clear that this is our final offer and there will be no more bargaining dates scheduled. Also, if the offer is accepted, wages will not be reverted and overpayments will not be collected.

If the offer is not accepted, we have no choice but to act on the Judicial Review ruling and roll back wages and recover overpayments.

Once the voting period closes, demand full transparency from UFCW 401 on the outcome of the vote. Don’t let your vote be cancelled.

Take the time to carefully consider what the Company is offering. It’s the best option to help secure a strong future for you and for our Safeway business in Alberta.

The ratification vote is this week — Here is what you need to know!

Posted on by Daniela Travierso

In December, the Company and UFCW 401 were at the bargaining table to find a path forward that would address the outcome of the Judicial Review. We made an offer and you asked your union to let you vote on it. Votes are scheduled from January 16 to 23.

In recent communications from UFCW 401, we are disappointed to hear that the union may not count your vote or honour the results. If the offer is not accepted, we have no choice but to act on the Judicial Review ruling and roll back wages and recover overpayments. Our offer provides a better path forward for all teammates and Safeway. Don’t let UFCW 401 cancel the results of your vote.

Our offer ensures you continue to be the highest-paid unionized grocery employees in Alberta. Despite what the union is saying, we want to be clear that this is our final offer and there will be no more bargaining dates scheduled. Also, if the offer is accepted, wages will not be reverted and overpayments will not be collected.

Here are the highlights of the deal:

  • Four-year extension expiring in August 2029.
  • Top-rated and overscale teammates would maintain the 10% wage increase they received in the 2023 FOS decision. In addition, these teammates would receive an extra 2% increase in August 2027, and a 2% increase in August 2028.
  • In-scale teammates would be eligible to receive a combined total of up to $2,000 in lump sum payments over the four-year extension. These in-scale teammates would receive $500 lump sum payments in August 2025, August 2026, August 2027, and August 2028.
  • In-scale teammates would be eligible to receive a combined total of up to $2,000 in lump sum payments over the four-year extension. These in-scale teammates would receive $500 lump sum payments in August 2025, August 2026, August 2027, and August 2028. In-scale teammates who reach the top-rate of the scale through their hours worked, will join their top-rated colleagues in being the highest-paid unionized retail employees in the province.
  • Increased dental trust funding, which is part of an industry leading benefit package provided at no cost.
  • Retirement allowance offering of $1,000 per year of service. Within the next four years, the Company would provide a one-time opportunity for interested teammates to apply for consideration to receive a retirement allowance. Both full-time and part-time teammates could apply. Should the teammate be selected, they would be paid a bonus of $1,000 per year of service. For a teammate with 35 years of service, this would be a $35,000 payment, less statutory deductions.

What should you do now?

  • Review the meeting notice posted by UFCW 401 to know where and how to vote. If you are not sure where to get this information, ask your Union Rep or your Store Manager.
  • Exercise your vote and make your voice heard. Don’t let someone else make this important decision for you.
  • Once the vote is conducted, demand full transparency from UFCW 401 on the outcome of the vote. Don’t let your vote be cancelled.

Take the time to carefully consider what the Company is offering. It’s the best option to help secure a strong future for you and for our Safeway business in Alberta.

The ratification vote is coming — make sure you know the facts!

Posted on by Daniela Travierso

In December, the Company and UFCW 401 were at the bargaining table to find a path forward that would address the outcome of the Judicial Review.

The Company presented a market-leading offer that meets the needs of our teammates, while addressing the competitive issues that our Alberta Safeway business is facing. Our offer even ensured that top-rated and overscale teammates would maintain the wage increases they were given in 2023 and 2024 and would not require teammates to repay overpayments. We are pleased to hear that you will have a chance to vote on this offer.

To make an informed decision, make sure you know the facts.

Here are the highlights of the deal:

  • Four-year extension expiring in August 2029.
  • Top-rated and overscale teammates would maintain the 5% increases they received in 2023 and 2024. In addition, these teammates would receive an extra 2% increase in August 2027, and a 2% increase in August 2028.
  • In-scale teammates would be eligible to receive a combined total of up to $2,000 in lump sum payments over the four-year extension. These in-scale teammates would receive $500 lump sum payments in August 2025, August 2026, August 2027, and August 2028. These lump sum payments are on top of the already negotiated wage increases that in-scale teammates would receive for every 500 hours worked. It’s worth noting that if, during the life of the extension, an in-scale teammate reaches the top-rate of the scale through their hours worked, they would join their top-rated colleagues in being the highest-paid unionized retail employees in the province.
  • Increased dental trust funding.
  • Retirement allowance offering of $1,000 per year of service. Within the next four years, the Company would provide a one-time opportunity for interested teammates to apply for consideration to receive a retirement allowance. Both full-time and part-time teammates could apply. Should the teammate be selected, they would be paid a bonus of $1,000 per year of service. For a teammate with 35 years of service, this would be a $35,000 payment, less statutory deductions. Please see here for further information on the retirement allowance.

Keep a lookout for voting information

The union will be sending information regarding how they intend to conduct the ratification vote.  We encourage you to participate and vote on this important deal.

Voting “yes” would mean that the Company won’t roll back wages or collect overpayments. This also means that top-rated teammates would keep their status as the highest-paid unionized retail employees in the province, making 7.5% more than the closest unionized competitor, Real Canadian Superstore.

Voting “no” would mean that we would have no choice but to implement the outcome of the Judge’s decision and revert wage rates for top-rated and overscale teammates as we have previously communicated. For many top-rated teammates, this will result in up to a 10% total reduction in pay, which can represent over a $2 per hour difference.

Compare the certainty of what we have offered with the uncertainty of a complicated, lengthy legal process and a difficult bargaining in 2025 with an unknown outcome.

Take the time to carefully consider what the Company is offering. It’s the best option to help secure a strong future for you and for our Safeway business in Alberta.

Thank you for your continued patience during this process.

Safeway employees want to vote on the Company’s offer

Posted on by Megan Buston

Your union has informed us that the majority of Safeway employees who participated in their survey want to vote on the Company’s offer that was presented at negotiations last week. The Union has not informed us when that vote will occur; we ask all employees to reach out to the Union to encourage that vote to happen as soon as possible. Leading into that vote, we want to ensure that you have all the relevant facts to make an informed decision.

Highlights of the offer include:

  • Four-year extension expiring in August 2029.
  • Top-rated and overscale teammates would maintain the 5% increases they received in 2023 and 2024. In addition, these teammates would receive an extra 2% increase in August 2027, and a 2% increase in August 2028. The fact remains that top-rated employees would continue to be the highest paid unionized retail workers in Alberta, making 7.5% more than the closest unionized competitor, Real Canadian Superstore.
  • In-scale teammates would receive $500 lump sum payments in August 2025, August 2026, August 2027 and August 2028. These lump sum payments are on top of the already negotiated wage increases that in-scale employees receive every 500 hours worked.
  • Increased dental trust funding.
  • Retirement allowance offering of $1000 per year of service.

What happens next?

Last week, the Company presented our offer to your Union. Yes, UFCW 401 has asked for further dates in January, but we have remained consistent in saying that we must address the outcome of the Judicial review in a timely manner. In fact, we offered UFCW 401 four full weeks to bargain between November and December. Your union selected only one week.

When you vote, we encourage you to carefully consider what we have proposed in our offer. Compare the certainty of what we have offered with the uncertainty of a complicated, lengthy legal process and a difficult bargaining in 2025 with an unknown outcome.

Our desire is for this offer to be ratified by our employees so that we can resolve this issue once and for all. A ratified agreement means that we will not roll back wages and collect overpayments, and top-rated employees will remain the highest paid unionized retail employees in the province.

Voting yes to the Company’s offer helps to secure a strong future for you, our teammates, and the Safeway business in Alberta.

Sitting Down With UFCW 401

Posted on by Megan Buston

We are pleased that your Union, UFCW 401, has agreed to meet with us from December 16 – 20 to find a path forward and address the outcome of the Judicial Review, including the potential wage rate reversion and collection of overpayments.

We strongly believe that we can reach a fair agreement that will meet the needs of our teammates and help ensure the long-term success of the Safeway banner in Alberta.

We are going into these discussions committed to finding a resolution, and we are hopeful that your Union is, too. With your Union’s support, we are confident that we can reach an agreement before the holidays and have it ratified in a timely fashion.

We’ll keep sharing updates as discussions progress and we encourage you to stay informed, too. Be sure to check out the latest FAQs for up-to-date information, and connect with your Store Manager if you have questions.

Updated Frequently Asked Questions

Posted on by Megan Buston

Many teammates have brought forward that the Union is holding a town hall on November 20 with a lawyer, so you can ask questions about legal actions being taken against Sobeys. In addition, many employees are asking us what the next steps are. Please know that we have provided your Union with dates to meet. We are getting concerned because your Union has not yet confirmed any dates with us. We are confident that we have the ability to reach a deal that works for all employees; including employees who are not at top-rate or overscale. This is why it is in the best interest of all employees, for the Company and the Union to meet.

Listed below are some questions that employees have been asking us. Working with the Company’s legal counsel, we are answering your questions below. We encourage you to attend the Union’s town hall to ask questions, as well as to urge your Union to meet with the Company.

Q: Can the Company and the Union agree to extend the Collective Agreement before it expires in August?

A: Yes, we can extend the Collective Agreement now, provided both parties agree to negotiate.

Q: Can the parties finalize the 2023/2024 wage rates for top-rated and overscale employees as part of those negotiations?

A: Yes. The parties can finalize those wage rates as part of their negotiations instead of continuing with the Court proceedings and potentially having to do another Final Offer Selection (FOS) arbitration.

Q: The Union keeps asking if I am prepared to go on strike and implying that the strike can occur after the Company rolls back wages on January 26, 2025. Does this mean a strike will happen on January 27, 2025?

A: No. Regardless of whether an agreement to extend the contract is achieved or not, you are unable to legally go on strike on January 27, 2025. As a reminder, the Collective Agreement does not expire until August 9, 2025. Any strike before then would be illegal and the consequences of participating in this type of illegal strike activity would be discipline (up to and including the possibility of termination) and potential damages against the Union.

Q: Can the Union call a strike after the Collective Agreement expires in August to restore the 2023/2024 wage increases that were overturned by the Judge?

A: No. The Union cannot call a strike to restore the 2023/2024 wage increases. The Union can only call a strike to determine what will be included in the new Collective Agreement (i.e. the wage rates for 2025 and going forward). If the parties cannot agree on the 2023/2024 wage increases, they will have to continue with their Court proceedings and potentially conduct a new FOS arbitration.

Q: The Union has advised that they are appealing the Judge’s decision to the Court of Appeal. What is the Court of Appeal?

A: The Court of Appeal is the highest level of Court in Alberta. It hears appeals from decisions made in the lower Courts, such as the Judge’s decision on the Company’s Judicial Review application.

Q: How long could it take for the Union’s appeal to be heard and decided by the Court of Appeal?

A: There is no set timeline, but it could take up to a year for the appeal to be heard and even longer for it to be decided.

Q: Is the Court of Appeal the last step in this process?

A: Unfortunately, no. If either party is unhappy with the decision of the Court of Appeal, they could seek leave to appeal to the Supreme Court of Canada. The Supreme Court of Canada would then have to decide whether it would hear the matter. This would likely take many more months.

To see additional FAQs shared previously with teammates, click here.

The way people shop continues to evolve. We must adapt to succeed.

Posted on by Daniela Travierso

We returned to bargaining in June with UFCW 1518 and the bargaining committee. We made some minor progress, but we’re concerned about the lack of understanding of the changes and pressures in our industry and how this impacts our collective agreements.

It’s clear that our customers and communities continue to change and so too are their shopping behaviours.

B.C. families are budget conscious and looking for the best value and it’s no surprise that discount competitors are attracting more customers. Customers are buying down and this has negative impacts on full-service grocery retailer sales, market share and basket size.

Since the end of the pandemic, we’ve also seen customer shopping patterns shifting from demanding one-stop shop locations to shopping at many locations and formats to get the lowest prices.

We’ve been impacted by these changes in shopping patterns.

We’re also facing added pressure from other grocery and wholesale club competitors all seeking customer loyalty in an effort to increase their sales. Customers have limited budgets and need to decide carefully where to spend their hard-earned money.

So how can Safeway compete?

  • We focus on serving our customers and running profitable stores. We need to drive sales and control our expenses to grow our business. The 7% increase in minimum wage in June was a significant cost to our business. And while we’re committed to rewarding you appropriately for your hard work, we must ensure it doesn’t jeopardize the profitability of our stores. Also, with any increases to wages we need to make sure we can compete within our industry and in this province.
  • We need to address areas of competitive disadvantage. Operational constraints like an absence of vendor stocking language, complicated scheduling practices, and an inability to effectively introduce third party kiosks, have made it difficult for us to compete with the rest of the industry which doesn’t have these restrictions.
  • We win together. We have to work together to beat the competition by providing exceptional value and service to our customers every time they come through our front door and spend a portion of their household budgets with us. In addition, the Company has prioritized creating a model for meaningful full-time jobs and a path for development for teammates who want to build their careers at Safeway.
  • We continue investing. We have, and will continue to, invest in updating some of our current stores by giving them a much-needed facelift to strengthen the Safeway brand and better serve our customers.

Since 2018, we’ve come a long way as a team and we need to keep focusing on managing our business both in terms of investments and controllable costs to ensure we can keep the Safeway banner viable and healthy in this province.

We remain committed to reaching an agreement with the Union and your bargaining committee. There’s a lot of hard work ahead of us, but we can get it done by working together.

Keep checking in with us for business updates on SafewayTalks.ca.

Let’s go the extra mile to support Special Olympics Canada athletes

Posted on by Daniela Travierso

It’s that time of year again!

Our annual in-store fundraising campaign in support of Special Olympics Canada kicks off today! From June 1 – 8, customers can either donate $2 or round up their bill to the nearest dollar at their local Safeway to support Special Olympics activities. Sobeys Inc. will also match donations to a maximum of $500,000!

Did you know that 4 out of 5 individuals with an intellectual disability have a chance of being obese? Involvement in Special Olympics leads to 10% fewer athletes who are obese or overweight. Plus, 49% of young adults with intellectual and developmental disabilities who participate in Special Olympics are less likely to be diagnosed with depression.

These are just a couple of the many reasons why we’re so proud to partner with Special Olympics Canada and to help athletes lead healthier, happier lives.

Since our national partnership began in 2016, we’ve invested over $9 million through sport, health, fitness and nutrition education. This means that more than 41,000 Special Olympics athletes registered in over 6,000 programs across Canada have benefited from our support. These athletes are supported by more than 17,500 coaches and volunteers.

Be sure to watch this heartwarming video from Special Olympics athletes cheering you, our passionate Safeway teammates, on as you bring this campaign to life in store and encourage customers to donate.

Let’s rally together to raise as much funds as we can for this incredible cause. Thank you for all that you do!

A legacy of support: Safeway and Special Olympics Canada

Posted on by Daniela Travierso

Our annual Special Olympics Canada in-store fundraising campaign (June 1 – 8) is almost here, but first we’re taking a moment to recognize our Safeway banner for your long-standing history of support.

Did you know Safeway has been supporting Special Olympics since the 1980s? That’s right, we’re talking about decades of helping thousands of athletes with intellectual disabilities achieve their goals and dreams.

In fact, it’s because of Safeway’s meaningful involvement with Special Olympics that inspired Sobeys Inc.’s partnership with this organization and led to the birth of our national fundraising campaign in 2016. Since our national partnership began in 2016, we’ve invested over $9 million through sport, health, fitness and nutrition education.

Here’s a few highlights of Safeway’s support over the years:

  • Over the past 15 years alone, Safeway teammates have helped raise nearly $4 million.
  • Before 2014, Safeway stores ran regional in-store fundraising campaigns that supported their local Special Olympics chapters.
  • In 2014, Safeway granted Special Olympics Canada its first-ever exclusive campaign with 100% of the proceeds supporting this organization at a national level.
  • Safeway was a sponsor of the 2020 Special Olympics Canada National Winter Games in Thunder Bay, Ontario.
  • Safeway has also been a proud employer of Special Olympics athletes in the local community, helping to build a powerful understanding of how to create a diverse and inclusive workforce.

Thank you, Safeway teammates, for your unwavering support of Special Olympics in your province and local communities. Your countless contributions have helped to change and enrich the lives of Special Olympics athletes through sport, friendship, fun and mentorship. You’re proof that helping others is, and will always be, part of who we are.

We’re also always on the lookout for Special Olympics champions or athletes in our stores to spotlight. If you know of someone, let us know: communityinvestment@sobeys.com.