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Since we began bargaining with UFCW 401 over a year ago, it’s been our goal to ensure that you have all the information you need from both sides of the table to stay up-to-date with the facts. We were disheartened to see that the Union left out some crucial information when recently communicating with you. To clarify, here is an update on recent contract negotiations at Safeway:

• The Company and Union negotiators have been working with a government appointed mediator assigned in April to help us reach a new collective agreement.
• The mediator and the parties scheduled a week of negotiations between June 9 to June 12.
• On Tuesday, June 9 we began discussions on some operational items that need to be addressed in order put us on a level playing field with our competitors.
• On Wednesday, June 10, union negotiators asked the government mediator to “write out” — to end the mediation and take the next step toward a strike. It is not accurate to say that the mediator ended negotiations. The Union ended negotiations.
• You are now being asked to approve a strike vote. After a successful strike vote, there is no legal requirement for your Union to consult with you again before calling a strike.

Within hours of asking the mediator to leave the process, the Union began gearing up for a strike vote, and asking its members to support it. Here are a few comments on that:

• We strongly encourage you to participate in Union meetings, to ask questions to make sure you know all the facts about these negotiations, and to vote in the coming strike vote. If you don’t participate, decisions about your job and the future of Safeway will be made by others.
• If you have any questions for the company, please speak to your store manager and we will work hard to have your questions answered as quickly as possible.
• Strikes and lockouts won’t make the issues we face at Safeway go away. The only thing a labour dispute at Safeway will achieve is pushing our customers away — the last thing any of us should want.
• We need to keep our customers, and recruit new ones, to ensure a safe and secure future for Safeway and for the thousands of families that depend on us. To do that, we need to refresh and reinvest in our Safeway stores, and we need to offer our customers the discount options they are looking for. The way to get there is with a competitive, modern and mutually beneficial collective agreement.
• Whatever happens in the weeks and months to come, at some point we are all going to have to return to the bargaining table. The same issues will still need to be addressed.
• When the Union decides to stop focusing on strikes, it will be a better time to talk. When we start talking, we’ll keep working on the outstanding issues because we must resolve them, to ensure a safe and secure future for Safeway and our teammates.

Again, if you have any questions or comments for us, please don’t hesitate to speak to your store manager. We’ll continue to share information on these negotiations as they go forward.

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.

As we head back to the bargaining table next week, it’s important to us that we remain connected with you, so you have a clear understanding of what we are trying to achieve. Times are challenging, but we are committed to the collective bargaining process and securing a strong future for Safeway in Alberta.

Last week, we presented an offer to UFCW 401 that they have decided to take to their membership for survey. This survey fails to mention the important background information that our offer is based on. Here are some facts you need to know:

 

• More than half of our Safeway stores in Alberta are struggling financially.  Alberta was facing financial challenges before COVID-19 and they will continue or even worsen after COVID-19. The temporary sales spike during this pandemic is not enough to fix the financial challenges that faced the Province before the pandemic, and it is not enough to help us through the next wave of financial hardship in Alberta.

 

• To help UFCW 401 understand our challenges, we want to share store financials with union leadership but UFCW 401 refuses to agree to protect this competitive information. In doing so, they refuse to acknowledge the financial challenges faced by so many of our Alberta Safeway stores.

 

• Even in the face of financial uncertainty, we are still focused on securing a strong future for our Alberta stores by investing significantly in the Safeway banner and introducing our much-needed Discount banner, FreshCo in the right communities. We can only continue to invest in the Safeway banner if we achieve a competitive agreement.

 

• Our competitors have significant advantages in their agreements. We are not asking for anything that is not already standard in the Alberta retail environment. Without a competitive offer, we cannot close these gaps and our stores will continue to suffer.

 

We need a fair agreement that balances the need to serve customers with the Discount format they want, while making sure our teammates are rewarded appropriately for their hard work.

We want to compete, we want to invest, we want to continue to grow. To do so, we must have a competitive collective agreement that allows for long term success.

Please reach out to your store manager if you have questions. We will continue to post updates on Safeway Talks.

We’ve been back at the bargaining table this week with UFCW 401, working towards a fair collective agreement and this is an update on where we are in this process.

We approached this week’s bargaining with our two goals top of mind: first, to invest in the future of Safeway, and second, to introduce FreshCo in the right Alberta markets. Our conversations started positively, and both parties made progress. However, as our discussions continued and we shared our offer, we found ourselves at yet another stand-still with the Union. Unfortunately, we have not come to an agreement. We trust the bargaining process and are committed to continue bargaining with the oversight of a government-appointed mediator, but it appears UFCW 401 is not on the same path.

The fair offer we proposed allows us to continue to build a strong future for our teams in Alberta. It allows us to maintain secure jobs, while operating viable grocery stores to continuing serving our communities. Our offer includes a comprehensive approach to wages with meaningful monetary improvements, and improved benefits that are competitive in the industry.

We know this has been a long process. Since bargaining began over fifteen months ago, we have been laser-focused on our long-term success in Alberta. It has always been our intention to continue investing in the future of Safeway in Alberta, however, this will only be possible under the right conditions and collective agreement. Our ongoing projects to renovate and refresh our stores prove that we’re committed to Safeway. Our plans also include introducing our proven Discount model, and opening FreshCo stores in the right Alberta markets. Our transition plans include fair and appropriate options for the employees. Now more than ever, it is important that we meet the needs of Albertan families in the challenging economic times that will continue to persist.

Though we are looking towards a stronger future, we want you to know that we have not forgotten all that is currently on your plate. You have done an outstanding job serving Albertans as an essential service through the COVID-19 pandemic. We will continue to ensure that amidst the future of bargaining with UFCW 401, our focus on your safety, and the safety of our customers, will not waver.

We ask that you keep yourself informed during this bargaining process. You may notice increased Union activity at your store, in the media, your store’s parking lot, or online. This could include leafleting, demonstrations or distributing items to customers in front of your store. Please use your best judgement when consuming this information. Your Store Managers will continue to be a source of support and are here to help answer the questions you may have at any time. We will also continue to provide updates on Safeway Talks.

We want to continue mediation and hope we can regain the momentum we’ve lost. We’re incredibly grateful for your patience throughout this process and hope we can reach a resolution soon. Remember there is strength in numbers. The best way to secure a strong future on the other side of this crisis is to continue to stand together. These tough times will not last. Our tough team will.

 

For the last 15 months, it’s been important to us that you stay informed with honest and accurate updates from the bargaining with UFCW 401. We remain committed to achieving a fair collective agreement that positions us all for future success.

As we prepare to return to the bargaining table next week, we want to reaffirm our unwavering commitment to transparency. Our focus at the table has not and will not change. We will continue to work towards an agreement that allows us to build a strong foundation for the future of Safeway in Alberta and allows us to introduce FreshCo in the right Alberta markets.

Prior to the COVID-19 global pandemic, factors including falling oil and gas prices and an increase in unemployment, had forced the province of Alberta into an extremely challenging economic position.  While we can’t be certain how long the impacts of COVID will last, we can be sure that once we reach the other side, the Province and our stores, will still face these challenges. Though customers will continue to turn to Safeway for our incredible service, knowledgeable staff and unparalleled product offering, the tough economic climate will leave our communities wanting more discount grocery options. By introducing FreshCo, we can ensure our store network meets the needs of Alberta families in the months to come.

Although we have often spoken of the undeniable need for a discount offering in Alberta, we want to reaffirm to all of you that we are absolutely committed to the Safeway banner.  In fact, we are willing to invest $200 million into the Alberta Safeway stores over the next 5 years.  This can only happen under the right conditions and if we are competitive in the market.

It’s important that we look ahead to our future together. Our focus is a collective agreement that positions us for success for the long haul:

• Our bargaining proposals are fair and competitive, respecting our employees while supporting the success of the business.
• We are committed to working together with UFCW 401 and your bargaining committee on an agreement that ensures we become competitive in Alberta.
• We want to prepare as best we can in the face of the challenging economic times ahead.

Thank you, again, for all that you do in our stores. Your commitment to Albertan communities is inspiring. We will continue to share updates from the bargaining table and encourage you to stay informed as negotiations continue.

By working together, we will always be stronger.