Category: Feature

Taking the first step to work together and bring FreshCo. to B.C.

Posted on by Varinder Singh

In our ongoing talks with UFCW 1518, we have made it clear that we would like to start discussing a new collective agreement for our FreshCo. discount grocery stores in British Columbia.

We hope that this discount option could help provide jobs for many Safeway employees who may otherwise be impacted by the store closures that were announced for May of this year.

We have a real opportunity to provide our customers with the shopping experience they are looking for with our FreshCo. banner. This is an exciting opportunity for all of us.

To get there, we need the right terms in our collective agreement. We have worked hard to engage with the unions in B.C. to discuss a discount banner collective agreement, but haven’t made any progress. Because of that, we have sent the respective unions a letter formally announcing our intention to see a new collective agreement for our discount stores. We are using the “New Banner” process in our current collective agreement to kick-start these discussions.

We need to get these conversations underway now. The longer we wait to begin these talks, the more customers we risk losing to our competitors. Delays are bad for our business and bad for our team members.

We look forward to bringing FreshCo. to British Columbia. By working out these tough issues together, we can move ahead to a more stable, successful future for our company.

Stay with us on SafewayTalks.ca for up-to-date information on B.C. negotiations.

Let’s Get It Done Together

Posted on by Varinder Singh

We’re back at the bargaining table with UFCW 1518 in Vancouver this week to get an agreement in place for our valued team members.

Our goal is to negotiate a fair deal that will work for everyone. The grocery industry is more competitive than ever, and we need a new agreement that will allow us to face these challenges head on, together.

In recent years our competitors have added more than two million square feet of store space across the province. That’s equal to approximately 57 Safeway stores!

Much of this new store space is occupied by discount grocery banners. More than half of all grocery shopping now takes place at discount stores like No Frills, and Walmart Supercentres. If you’ve shopped in one of these stores, you know they don’t look much like a traditional Safeway.

That doesn’t mean we aren’t committed to our Safeway stores. It means that to compete we need to provide our customers with more options so they continue shopping with us.

One of the biggest challenges we face is that it costs us more than our competitors to run our stores. We need competitive operating costs if we’re going to stay in business. And most importantly we want to be in a position to introduce our exciting new FreshCo. stores into the province to take on the competition.

It’s important for you to understand some of these facts so that you understand why we have to take action to save jobs and keep stores open.

We love our community in British Columbia and look forward to a bright future here. We’ve expanded and remodeled beautiful new Safeway Extra stores in Dawson Creek, Burquitlam and Willowbrook in Langley and recently renovated the Shaughnessy Station location.

We look forward to working with your union to find the right solutions to secure a strong and exciting future for all of us.

Keep checking in with us at www.safewaytalks.ca for updates. Don’t forget to sign-up to receive email updates at Safeway Talks.

Celebrating Saskatoon’s Newest Safeway- Lawson Heights

Posted on by Varinder Singh

After weeks of hard work, an exciting ribbon-cutting ceremony and a $1,000 presentation to Special Olympics Saskatchewan, our new Safeway store is now open as of February 2nd, 2018.

Congratulations to the Safeway Lawson Heights Team, 210 members strong!

In this 60,000-square-foot store, customers are treated to innovative departments and products, including full-service floral, seafood and meat departments, expanded bulk foods, stone oven pizza, a carving station, pet boutique and Starbucks. We also feature an expansive Health and Wellness Department, fresh bakery and produce, along with the health care professionals in the Pharmacy.

The most important feature of the new store are the valued full-service employees and the customer experience they provide to each shopper. The Lawson Heights store reflects our commitment to bring fresh food and healthy choices to our communities, with the great Safeway customer service that can be expected at all of our locations.

In this rapidly changing grocery industry, this location is an example of how we are committed to building successful stores, synchronized with changing consumer needs. We are proud of our commitment to the Safeway brand and the communities we serve.

By working together and strengthening customer loyalty, we support our livelihoods at Safeway.

Stay informed at www.SafewayTalks.ca

Bargaining Update: Safeway supports Vince Ready’s recommendation for Saskatchewan, RWDSU facilitates vote

Posted on by Varinder Singh

After careful review, Safeway is in support of the recommendation put forward by mediator Vince Ready. While the deal includes terms that will increase costs at a time when cost control is so important, we have reviewed the proposal in detail and are able to support the recommendation.

Here are a few reasons why we support Mr. Ready’s proposal:

  • The deal is a reasonable compromise which allows us to move forward collectively.
  • It includes wage updates to align with current industry standards.
  • It includes benefits and policy updates to support employees.
  • It accounts for operational changes, like introducing third-party kiosks that will help our stores remain competitive in the challenging grocery market.
  • It includes the ability to negotiate with the union, new terms and conditions that are appropriate when converting any store to a new banner. As we begin our expansion of the FreshCo Discount banner into Western Canada, this will allow us to work together to shape the agreements within each of these new stores.

It’s no surprise that our Safeway stores in Saskatchewan and across Western Canada have been struggling under high operating costs. We’ve been losing money and can no longer afford to do so without a clear path forward.

We need solid collective agreements in place that meet the needs of our employees and allow us to operate with lower costs and more flexibility to beat our competitors and address changing customer needs.

Together we can provide a collaborative work environment, grow the business and exceed our customer’s expectations.

RWDSU has scheduled meetings to discuss the proposal with members and give you a chance to vote.

We hope you will have your say on voting day.

Check in with us here at SafwayTalks.ca for updates.

Mediator recommendation under review

Posted on by Varinder Singh

Last week, we reached out to let you know that we received Vince Ready’s recommendation for your collective agreement in Saskatchewan.

In an effort to keep you informed, I want to provide you with an update that the company’s evaluation of Mr. Ready’s report is on-going.  There are a number of Mr. Ready’s recommendations that will increase our operating costs and we have to take this into consideration at a time when cost control is so very important.

As every jurisdiction is different, we always apply a local lens to these agreements to ensure the terms put in place allow us to operate viable stores that help secure a strong future for all of us. We are taking our time to do what is right and review the recommendation carefully. It is important for us to carefully examine all aspects of Mr. Ready’s report in order to understand the impact on our business.

Soon, I will provide you an update and more details to your Store Manager.

Thank you for your patience and for your hard work in our stores each and every day. We need to remain focused on exceeding each customer’s expectation in this very competitive industry.

As always, stay tuned to SafewayTalks.ca

Thank you

Scott Chollak,
Vice President
Division Head, SK, MB, ON

We’re heading back to the bargaining table

Posted on by Varinder Singh

We’re back at the table with UFCW 832 this morning to work together for a deal that will save jobs and keep stores open across Manitoba.

As we move forward with the bargaining process, we want to keep you fully up to date.

In our last meeting with UFCW 832, the union set out their proposal and it was clear we have a long way to go before we can find common ground. We look forward to addressing these issues this morning and in the weeks to come.

It’s a tough time for the grocery industry and rising competition is only making things tougher. The way we’ve been operating our Safeway stores just isn’t sustainable anymore. We have to get a labour agreement in Manitoba. Having a deal in place will allow the company to focus on the future and make decisions that will help our stores grow and give our staff the stability you deserve.

We’re committed to keep working to reach an agreement that helps preserve the future of our stores in Manitoba and as many jobs as possible. We look forward to working toward an agreement with your union.

Keep checking back with us at SafewayTalks.ca for up-to- date information on negotiations.

Why we’re working hard to get a new deal for UFCW 832 workers

Posted on by Varinder Singh

More competition is headed our way. It’s not a secret that our competition is going through a large expansion. Save-On-Foods is planning to open 40 stores here in Manitoba and Saskatchewan.

Customers have more shopping options than ever before with No Frills and Real Canadian Super Stores as well as Costco and Walmart Supercentres.

One of the challenges our stores face is high operating costs – we have some of the highest in the industry. We need to get these costs in line so we can be in a position of strength to fight back our competitors and ensure stable jobs for our hard working people.

This Monday, January 29, we’re back at the table with UFCW 832 to work together to ensure we can provide good, stable jobs for our valued team members just like you.

We’ll share another update with you on www.safewaytalks.ca next week.

B.C. Store Closures, Potential FreshCo openings

Posted on by Varinder Singh

Today, Sobeys Inc. announced the permanent closure of 10 underperforming Safeway stores in British Columbia. In addition to these closures, we also announced five stores that will be closing, but may reopen as FreshCo locations depending on the outcome of labour negotiations with the relevant B.C. labour unions.

The decision to close stores is never easy. The changes we are experiencing in the marketplace are a direct result of changing customer preferences. The reality is some of our locations continue to lose money despite the best efforts of both the hardworking teams in our stores and in the Company.

It’s no secret that many of our stores in British Columbia have struggled in recent years. It’s important that we take the right steps forward to ensure a strong future for Safeway. We must return our stores to profitable growth and have the flexibility to react quickly to market demands.

As always, we will work with impacted employees to provide support as they transition to work in other stores or onto new career opportunities. We will also be working closely with their respective unions to ensure the terms of their collective agreements are met.

Our operating costs are some of the highest in the industry, and we have to get our labour costs in line to remain competitive. If we don’t reduce our operating costs, more stores will need to be closed.

These tough decisions will help us move to a more secure position to grow our business and provide good, stable jobs for British Columbians and the more than 125,000 Canadians we employ across the country.

The stores that are closing are:

  • # 4944 Safeway Lougheed Mall, Burnaby
  • # 4907 Safeway City Square, Vancouver
  • # 4904 Safeway Sunwood Square, Coquitlam
  • # 4945 Safeway Point Grey, Vancouver
  • # 4954 Safeway Royal Oak, Burnaby

Store that are closing but may reopen as FreshCo locations are:

  • # 4949 Safeway Blundell, Richmond
  • # 4957 Safeway Broadmoor, Richmond
  • # 4964 Safeway Newton Town Centre, Surrey
  • # 4935 Safeway Strawberry Hills, Surrey
  • # 4951 Safeway Mission

The pharmacies in these locations will remain open through the negotiations and potential renovations. The intention is to have the pharmacies in the new FreshCo locations.

We believe we can return Safeway to its place at the centre of Western Canadian communities with strong and successful stores. But we must work together to move forward.

We’ll continue to keep you informed in your stores and on SafewayTalks.ca

An update on UFCW 832 negotiations

Posted on by Varinder Singh

An update on UFCW 832 negotiations

This week, we sat down to begin negotiations with UFCW 832 in Manitoba.

Sobeys is at the table to get an agreement, and we will stay there and work hard to get one.

We want to be clear and transparent with you – we did not walk away from the table.

After the union set out their proposal, it was clear that there were significant differences in our positions. We said we had to carefully review the proposal and make some decisions on the path forward. Together, Sobeys and UFCW 832 decided to adjourn for the week. We’ve agreed to meet again on January 29 for negotiations and want you to know that we’re committed to continue working on and reaching an agreement.

We’re focused on negotiating an agreement that helps preserve the future of our stores in Manitoba and as many jobs as possible.

The grocery industry is competitive and it’s only getting tougher. Many of our Safeway stores continue to lose money and are not sustainable. Our operating costs are still some of the highest in the industry. It’s vital that we get our labour costs in line so we can continue to be competitively priced in the market while providing  good, stable jobs and secure a strong future for Safeway.

Keeping you informed is important to us and we’ll continue to share updates in your stores and on SafewayTalks.ca

An important message for Safeway employees

Posted on by Varinder Singh

There has been a lot of news to digest in recent weeks. We want to ensure you have the most up-to-date information as we all work together to strengthen our Safeway stores and reconnect with our customers.

We’d like to address three important areas to help provide clarity around this news and other important issues to date:

  • Project Sunrise
  • Our continued commitment to full-service format stores
  • The strong case for expanding our Discount format in Western Canada

Project Sunrise

As you know, the grocery industry is extremely competitive and these effects are being felt across all banners, at all levels of the Company.

To address these challenges we launched Project Sunrise, a major transformation initiative to win back our customers and strengthen our stores. The first phase of Project Sunrise is now complete. Through this process we have created a simpler office structure to operate more efficiently and better serve our stores and customers.

The second phase of Project Sunrise, to unlock our scale, is well underway. As part of this phase, we announced our significant plan to expand our Discount banner, FreshCo, into Western Canada.

Our continued commitment to full-service format stores

We have no intention to remove our full-service format. We remain committed to our full-service stores — they are the backbone of our business. In fact, even with our expansion of Discount in the West, the vast majority of our stores in Western Canada will continue to operate as full-service format stores.

Unfortunately, many of our full-service stores are not competitive at this time. We need to implement changes in our full-service offering to be in a better position to serve our customers’ changing needs. We need to get our costs down and increase our flexibility to compete.

Our customers’ tastes are changing and we need to change with them to remain competitive. Customers are telling us that they want more options to do their shopping.  They continue to demand our conventional full-service stores but they are also asking for a more price-competitive Discount format. Giving our customers what they want is the best way to win them back and grow our overall business.

Through the first phase of Project Sunrise, we have structured our office teams to ensure that support for full-service retail operations is strong and not distracted by our Discount roll-out in Western Canada. A dedicated team will be responsible for managing the Discount roll-out.

The strong case for expanding our Discount format in Western Canada

The expansion of FreshCo in Western Canada comes as a direct result of customer demand. We’ve conducted detailed customer and market studies and found that there is strong opportunity for Discount in Western Canada.

Today, Discount grocery is the fastest growing brick and mortar segment of the grocery market.

Eighty-seven per cent of Sobeys Inc. stores across the country operate in a conventional grocery format, whereas Discount stores, like FreshCo, now make up nearly 44 per cent of the Canadian food retail market.

In short, customers are shifting heavily to Discount grocery shopping. In order to keep our stores open and provide good, stable jobs for our employees, we must be in a position to meet this clear customer demand.

Our goal is to build more stable stores, stores that create good jobs and opportunities for our people.

Working together for a successful future

We all share a vested interest in growing our business together. We need to work together to build a stronger Safeway.

Over the past year, the Company has made tough decisions and changes to focus on winning back our customers and strengthening our stores. We need to move quickly to respond to customer demands in order to be successful.