This week, we returned to the table with UFCW 401 and the Safeway bargaining committee for four more days of collective bargaining with the assistance of a government appointed mediator. We were committed to continuing mediation and working to finalize a competitive and fair collective bargaining agreement.
After only one and a half days of negotiations, the Union has decided to ask the government appointed bargaining mediator to “write out” effectively ending mediation. By asking the mediator to take this step, the union has triggered the legally-required 14-day “cooling-off” period before calling for a strike vote, which will likely occur in the last week of June. Following a strike vote, where the majority of employees who participate authorize a strike, the Union can begin a strike by providing 72 hours notice. There are no further steps required before a strike can begin.
By ending mediation, UFCW negotiators are walking away from a competitive offer that included:
- Significant investment in the Safeway banner in Alberta, building a more profitable and secure future
- Significant annual lump sums payments for all top-rated employees throughout every year of the agreement
- Signing bonuses for all employees
- Wage increases for approximately 2,000 employees who are currently being paid minimum wage
- Benefit improvements for those currently on the Company Benefit Plan.
The last offer we proposed to the Union was competitive and fair, especially in light of the uncertain economic conditions that Alberta is facing and the continued poor financial performance of many Safeway stores. We are disappointed that during a time of unprecedented stress and anxiety, UFCW 401 has made the decision to end the mediation process.
In the coming days, you will see more activity around the store as we engage our business continuity plans and prepare for a potential strike. This could include inventory changes to adjust for strike or seeking replacement workers. We encourage you to speak with your Store Manager if you have any questions.
Please continue to stay tuned to Safeway Talks as we commit to keeping you updated throughout this process.