Category: Provinces

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.

Working together to secure our future is important

Posted on by Varinder Singh

We wanted to reach out to you directly, because UFCW 1518 has been distributing inaccurate information about what’s happening in Safeway stores. The Union has distributed pamphlets at our stores attacking the company, incorrectly stating that Sobeys has commenced an illegal lock-out by announcing the closure of 10 Safeway locations.

It’s important to set the record straight. We have not commenced a lock-out.

The store closures were announced because those stores were facing financial difficulty. Employees are not being “locked-out”. We can only continue to strengthen our stores if we work together.

Making tough decisions for a stronger Safeway: Our industry is facing major changes and we have the responsibility to make difficult decisions that will move us forward and create a strong future in the province.

Pushing customers away won’t solve our issues: The union has been handing out pamphlets at Safeway stores that attack the quality of our stores. This action will only serve to push customers away, and that is bad for jobs, bad for job security, and bad for the long-term future of Safeway.

Working together, we have addressed many challenges: We did face challenges during the recent ownership turnover, as every member of our team knows. Every member of our team, in and out of our bargaining units, worked hard to address those challenges. We can’t thank you enough for all you’ve done as part of this process.

Customers are demanding discount options: The tough decisions we’ve made will help us get to a more secure position to grow our business. Expanding our Discount format FreshCo stores will give our customers in British Columbia an option for a simpler, value-based shopping experience without going to a competitor. It’s an option we know they want and we want to provide.

Our customers are changing and we have to adapt. The fact is we must keep up with what our customers want if we’re going to return our business to solid ground so we can continue providing good, stable jobs for our valued Safeway staff.

Keep coming back to safewaytalks.ca for updates.

Mediator Vince Ready releases recommendation for Saskatchewan Collective Agreement

Posted on by Varinder Singh

We wanted to let you know right away that Vince Ready, the mediator who was selected by Safeway and RWDSU, has come back with his recommendation for your collective agreement.

Nothing is more important to us than operating healthy stores and saving jobs. With this in mind, we are carefully reviewing this report and will provide an update soon.

As you know, we have been unable to negotiate a new contract with RWDSU for a number of years. The right labour deal will go a long way to provide certainty for our employees and flexibility for us to address changing consumer preferences.

Keep checking in on Safeway Talks for updates.

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.

An important message for all British Columbia Safeway employees on the FreshCo announcement

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 four 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
  • Set the record straight on the current status of bargaining and other issues

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 – reorganizing our office teams to operate as one national, functionally-led organization – 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 through the Discount roll-out in Western provinces, 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’ 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 options through our conventional full-service stores and a Discount offering. This is the best way to grow our overall business and win back our customers.

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 bricks 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.

Update on the status of bargaining and other issues

Change of this magnitude is not easy on our team and we know you have questions. We want to ensure you to have the all facts to make clear decisions. Recently, there has been misinformation circulating about Company announcements and the status of bargaining.

In the interest of being clear and transparent, here are the details of the Company’s position:

  • The Company has tried on a number of occasions to engage the Union by asking UFCW 1518 to set bargaining dates for the reopener negotiations. The Union has not agreed to do so, arguing they will not agree to dates until they receive extensive financial information. Our position has been clear: the Company will provide and discuss relevant financial information when the parties meet to negotiate. As a result of this impasse, the Company has had to take the unprecedented step of going to British Columbia’s Labour Relations Board for assistance in setting dates for bargaining.
  • For almost six months, the Company has tried to engage with the Union in the Quarterly Review process to discuss the status of 19 underperforming stores in B.C. Unfortunately, these attempts have been unsuccessful as the union would not engage in the process. The Quarterly Review process is set out in the Collective Agreement, and the Union has not recognized this responsibility. As part of the Quarterly Review process, the Union would have received financial disclosure on the 19 stores in question months ago.
  • It has been well known in the industry that the Company was contemplating expanding our Discount format. In the UFCW’s own letter to the membership, it noted that Michael Medline, President and CEO, Empire Inc., stated publicly months ago that the FreshCo expansion was being considered. Despite this, the Union has indicated that it was “blindsided” by news of the FreshCo expansion.
  • Over the course of the last year, the Company has met with UFCW 1518 leadership on an ongoing basis, having many frank discussions about the state of the Company and possibilities for the future, including the possible expansion of a Discount banner like FreshCo. As a result, this latest announcement should come as no surprise to UFCW 1518.
  • The Company was not in a position to provide UFCW 1518 with firm details on the FreshCo expansion decision until the decision was reported publicly. The FreshCo expansion is a material announcement and we are a public company. As such, securities regulations would not allow us to discuss this internally without informing the market first. The Union is aware of this rule. It is our goal to be as transparent as possible with UFCW 1518 and you, our employees.

Working together for a successful future

We all share a vested interest in growing our business together. We are striving to return to profitability – profitability that will serve both the Company and our employees’ best interests.

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. An important part of this process is having the necessary conversations with employees and unions to discuss moving forward with these plans.

The only way to move forward together is to get to the bargaining table and start the important work of building a stronger future together.

If you have any further questions about this information, we encourage you to submit them on safewaytalks.ca. We are committed to continue communicating with you as more information is made available and will connect again soon.