No deal reached with UFCW 401

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!

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!

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.

UFCW 401 is not putting you first

We’re disappointed by the recent advertisements put out by your union, UFCW 401. Not only are they riddled with false statements intended to damage our reputation, but are meant to take attention away from what matters most right now — understanding Safeway’s offer and getting prepared to exercise your right to vote on it.

We can’t stand by and accept the union’s slander. This is why we’ve sent the below letter to UFCW 401 leadership and we will respond to their defamatory public campaign with legal action.

It’s unfortunate that your union is not acting in your best interest.

We encourage you to ask them why.

 


 

January 8, 2025

To: Thomas Hesse, President, UFCW Local 401

Re: Alberta Safeway

We are disappointed to see that UFCW 401 has resorted to advertisements filled with inflammatory rhetoric and blatantly false statements. We cannot understand why the union that claims to represent workers’ best interests would actively engage in conduct that would dissuade Albertans from shopping in our stores? Fewer customers mean fewer available hours. It makes no sense that you would take actions that would hurt our teammates. We demand that you discontinue these harmful activities immediately.

It is unlawful to make false allegations with the intent to damage a reputation or brand so as a result, we will be responding with legal action.

We will also set the record straight with our teammates. Rather than spending teammate dues advocating for their best interests, UFCW 401 is wasting resources on advertisements that will result in negative impacts to our teammates as well as the long-term wellbeing of our business.

The facts are clear: Top-rated Safeway teammates are the highest paid unionized grocery employees in Alberta. Our offer enables teammates to maintain those wage rates while the rest of the market catches up. Why would the union encourage members to vote against an offer that allows them to continue to be top wage earners?

Our offer balances the needs of all teammates while addressing the long-term health of Safeway’s business in Alberta. Contrary to the union’s approach, we remain committed to

transparent and truthful communication and will be encouraging our teammates to vote “yes” on the deal before them.

If the offer is rejected, top-rated teammates wages will be reverted and they will be left with an uncertain outcome from the various different legal proceedings ahead of us. For the in-scale teammates, they lose out on any guarantee of additional money in the coming years. Our offer allows teammates to maintain what they have now and provides certainty for the next four years. Pushing them towards any other outcome makes no sense for any of our teammates.

Best regards,

Andrew Follwell, VP Labour Relations

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

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

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.

Update on bargaining with UFCW 401: A disappointing outcome

This week, we’ve been in negotiations with your union and bargaining committee. Unfortunately, we weren’t able to come to an agreement. We’re extremely disappointed in this outcome as we made every effort to work collaboratively with your union to find a path forward, together.

We came prepared to engage in meaningful dialogue and presented an offer that provided something for all teammates. Our offer even ensured that top-rated and overscale teammates would maintain the wage increases they were given in 2023 and 2024, keeping them as the highest paid retail unionized employees in the Alberta market.

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.
  • In-scale teammates would receive $500 lump sum payments in August 2025, August 2026, August 2027 and August 2028.
  • Increased dental trust funding.
  • Retirement allowance offering of $1000 per year of service.

Take a look at the full offer we tabled today.

This offer is market leading for unionized grocery retail in the province. We now must give our competitors time to catch up to our wages to ensure the long-term sustainability of the Safeway business in Alberta.

We strongly encourage you to connect with UFCW 401 and ask them to allow you to vote on this offer.

Sitting Down With UFCW 401

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

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.

Safeway Judicial Review: Frequently Asked Questions

Teammates,

We have been receiving many questions since our last Safeway Talks communication. Many employees are asking why the Company challenged the November 20, 2023, Final Offer Selection (FOS) decision, in the first place. As we have mentioned previously, the FOS decision put significant financial pressure on our business and if left unaddressed, would have continued to impact the competitiveness and long-term viability of Safeway.

The FOS decision was overturned in part because of inaccurate and irrelevant information submitted by your Union. The court recognized that the Arbitrator’s wage decision was “based on facts not supported by the evidence.” Further, the judge recognized that the Arbitrator’s decision was “unreasonably” based on market comparators of which “none are part of Sobeys’ competitive climate.” 

We had no choice but to take action on the FOS decision to protect the Safeway business.

We have contacted your Union and provided a number of dates for the parties to meet and discuss a resolution that could benefit all parties.

We urge you to fill out the Union’s survey; encouraging the Union to meet with the Company.

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.

We will continue to keep you updated as we proceed. In the meantime, here is an FAQ document that addresses the questions that have come to our attention.