1. Why is my store under the quarterly review when others seem like a better choice?
We have faced some challenges in the BC market, and a number of our stores have been losing money for some time. The Quarterly Review process is beginning with the most challenging stores in BC. This does not mean that these are the only stores that are not profitable. In fact, most of the Safeway stores in BC are currently operating “in the red”. However, to minimize the amount of disruption throughout our operations, we have selected what are clearly the most unprofitable stores in BC to be placed on Quarterly Review.
This process gives us an opportunity to deal with some of the challenges we have been facing at Safeway. Mounting competition in our industry means we need to ensure that we are able to keep our costs down and stores open to continue to provide good, stable jobs for thousands of people.
This Quarterly Review process is an opportunity for the company and the unions to examine and negotiate measures within the Collective Agreement that could be taken to make these stores profitable once again.
2. How long will this process take?
As you are aware, in our Collective Agreements with the UFCW locals 1518 and 247 in BC, we have an opportunity to address our unprofitable stores through the Joint Union Management Quarterly Review Letters of Understanding.
These Letters of Understanding allow us to request a review of the individual performance of stores that are experiencing financial difficulties or whose continued viability is questionable and sets out a 180-day timeline to conclude those discussions.
3. What happens if there is no agreement between you and the union?
If no agreement can be reached on Collective Agreement amendments, the matter may be referred to final offer selection arbitration for final and binding resolution.
4. What happens now?
We will be formally advising the UFCW Locals 1518 and 247 that we will be triggering the Quarterly Review process for certain stores in BC.
We will be organizing meetings with these unions as quickly as possible and are looking for solutions that will immediately begin to help return our stores to a profitable financial situation.
There are many options to be explored. We look forward to working with the unions to come to a solution that will help reduce our operating costs.
4. My store is already under Quarterly Review, why are we on this list?
Following a careful review of all Safeway stores in British Columbia, we have selected 20 stores to be placed under Quarterly Review which includes some already under the Quarterly Review process. The original Quarterly Revision agreements for those stores have not allowed them to return to a competitive position.
5. What is the company doing to help alleviate pressure? Why are you focusing employee related costs?
We value our employees very much. You are the backbone of our stores.
But we have a problem: our stores are not making money and our costs are out of line. If we want Safeway to regain our place as one of Western Canada’s leading grocery stores — a place that provides good, stable jobs for thousands of people like you and me — then our stores simply have to be the best places for our customers to shop.
Outside of labour costs, we have made efforts to become more profitable. For example, we have made some investments, including new commercial programs, a more competitive offering as well as enhanced marketing and pricing support.
Turning this around is a shared responsibility. We are committed to the market and will work together to rebuild a successful Safeway with good, stable jobs for the future.
