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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.

Update on bargaining with UFCW 401: A disappointing outcome

Posted on by Daniela Travierso

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

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.

Safeway Judicial Review: Frequently Asked Questions

Posted on by Daniela Travierso

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.

Safeway Reaches Out to UFCW Local 401

Posted on by Megan Buston

Teammates, as we shared with you, a judge overturned the 2023 Wage Reopener decision and ordered that the matter be heard again in a new arbitration.

The 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”.  

The Arbitrator’s original decision may only apply to those at the top of the scale or higher, but it has already put financial pressure on our business and if left unaddressed, will impact the competitiveness and long-term viability of Safeway, creating risk to teammate hours and jobs.

We know this is tough news to hear and this isn’t something we are taking lightly. This is why we have reached out to your Union asking them to meet with us. Please see below the letter sent to UFCW Local 401. We really hope UFCW 401 cares about what matters to you and that they make this a priority so we can find a path forward that works for everyone.

______________________________________________________________________

November 3, 2024

 

Re: Alberta Safeway

To: Thomas Hesse, President, UFCW Local 401

 

Tom,

We appreciate you responding to our request to meet. As we discussed in our meeting this past Tuesday, it’s clear that the Arbitrator’s decision has put financial pressure on our Safeway business and if left unaddressed, will continue to impact our competitiveness and long-term viability, creating risk to our teammate hours and jobs. Like we talked about, the company has no choice but to act quickly to protect the Safeway business.

This letter is to re-confirm that we would like to meet with Local UFCW 401 to work on a path forward.  While we are in discussions and as long as we are working together we are prepared to hold off on reverting wage rates and collecting the overpayment from team members until January 26th, 2025. We are hopeful that between now and January 26th, 2025, we are able to reach a fully ratified settlement that addresses the wants of our teammates and the Company’s significant competitive disadvantage. As we discussed, we will need to be focused to a very limited number of topics, including the extension of the collective agreement. Our labour relations team is prepared to meet and we have cleared our calendars to meet with you. Below we have provided all the dates we are available.

  • November 12th, 13th, 14th, 15th
  • November 18th, 19th, 20th and 21st
  • December 9th ,10th, 11th, 12th, 13th
  • December 16th, 17th, 18th, 19th, 20th

Timing is critical and we must find a solution that works for everyone.

Decision Made: Challenge of the Wage Reopener Ruling

Posted on by Daniela Travierso

As you are aware, we challenged the Arbitrator’s ruling on the Wage Reopener and we’re committed to keeping you informed on the process. As a reminder, we challenged this ruling because it put us in an uncompetitive position in the Alberta market, with top-rate wages more than 8% higher than our major competitors. We had no choice but to continue to work through the process to protect our Safeway business.

Today, we received news that the Judge determined that the Arbitrator made multiple errors in their decision, including the error of relying on wage settlements that were not part of Safeway’s competitive environment and information that was factually incorrect.  As a result, the Judge has overturned the Arbitrator’s decision and has ordered that the matter be heard again in a new arbitration.

The court recognized the errors and we are optimistic that the new Arbitrator will focus on the Alberta market and the competitive landscape in which we operate.

We recognize that this decision will cause uncertainty for our top-rated teammates. We assure you that we will share more on our path forward in the coming days.

Let’s fundraise — our Family of Support checkstand campaign starts today!

Posted on by Daniela Travierso

Today we kick off our fifth annual Family of Support fundraising campaign (September 19 – October 6) in support of Canadian children’s hospital foundations.

Since 2020, Family of Support has raised and donated $17 million to 13 children’s hospital foundations. These funds have helped to:

  • add dozens of treatment spaces
  • train nearly 13,000 mental health professionals and community care providers
  • treat and assess over 150,000 children and youth

These assessments are the first step to help connect kids with the right support, while the training of providers helps ensure sound, evidence-based care. The number of patients served reflects our commitment to support our partners as they meet the surging demand for mental health care.

Watch our revamped Clear the Clouds TV spot that shares the difference we’re making. These aren’t just numbers or stats — these are lives changed.

A big thank you to you, our Safeway teammates, for leading the charge in raising crucial funds to help provide mental health support for kids when they need it most. Every dollar raised will stay local, directly benefiting children’s hospital foundations in your community.

We’re so grateful for everything you continue to do to make this campaign a success!

Resources:

  • Learn more about Family of Support at familyofsupport.com.
  • Sign up year-round for our Healthier Tomorrows Giving Program, where you can donate directly from your paycheque to your choice of over 30 charities, including the 13 children’s hospital foundations we’re supporting through Family of Support.
  • Your wellbeing, and the wellbeing of your family, is so important to us. If you’re feeling overwhelmed or need support, please visit sobeysmentalwellbeing.com. For immediate help, text WELLNESS to 741741 or call 911 if you or someone you know needs urgent assistance.

Why challenge the Arbitrator’s ruling?

Posted on by Daniela Travierso

As shared with you in August, top-rated teammates were awarded their second wage increase. This said, Safeway continues to challenge the Arbitrator’s ruling on the Wage Reopener, and there may need to be difficult decisions taken.

It can’t be reiterated enough that the wage increases for top-rated teammates have negatively impacted the profitability of the stores and resulted in many locations becoming unprofitable. Safeway is now in an extremely uncompetitive position compared to the rest of the Alberta grocery industry.

As a result, the organization is required to assess if further action is needed to address this challenging position. All options are being considered including closures, conversions, and hours reductions — any of which could result in the potential loss of jobs.

Having to make any of these choices would be extremely difficult, and the organization doesn’t take the evaluation process lightly given the potential magnitude of impact. It’s because of this reluctance to make any of these tough choices that Safeway has no other option than to continue to challenge the Arbitrator’s ruling.

Further updates and details on the judicial review process and any difficult choices that must be made will be shared with you.

Last chance! Share words of encouragement for our athletes to win a Feed The Dream lunchbox!

Posted on by Daniela Travierso

As the much-anticipated Paralympic Games kicked off last Wednesday, we picked things back up with our Feed The Dream lunchbox contest. And in the midst of all the excitement, our Team Empire Paralympic athletes have earned three medals so far!

If you haven’t entered the Feed The Dream lunchbox contest yet, this is your last shot! You have until the Paralympic Closing Ceremony on September 8 to share words of encouragement for our Team Canada Paralympic athletes.

Just head on over to the Teammate Hub to enter today!

And remember, if you entered the contest during the Olympic Games, but haven’t yet won a lunchbox, you’re still in the running to win (no need to enter again!). Following the Paralympic Games, 500 additional lunchboxes will be randomly awarded, on top of the 500 given out during the Olympic Games.

While you’re on the Teammate Hub, don’t forget to:

  • Read the heartfelt notes of support written by your own teammates.
  • See what our Feed The Dream Correspondents are up to in Paris and follow along on their journey.
  • Take our monthly Trivia Challenge. You could score yourself a Lululemon Team Canada prize pack or Scene+ points.

Good luck, team!