Category: Uncategorized
Frequently Asked Questions – Alberta Safeway Judicial Review Next Steps
Updated December 2, 2024
Q: What is a Final Offer Selection (“FOS”) and how did it affect me?
A: Final Offer Selection (FOS) is the legal process that was written into the Collective Agreement after the last round of negotiations. The language in the Collective Agreement was agreed to by the Union and the Company and was ultimately ratified by employees in 2020.
The FOS language in the Collective Agreement states that if the Company and the Union are unable to come to an agreement regarding top-rate and overscale wages for the 2023 and 2024 wage reopener, an Arbitration will occur. The Arbitrator essentially acts as the ‘judge and jury’ and must choose between the Union’s wage position or the Company’s wage position.
The Final Offer Selection Decision came out on November 20, 2023.
Q: What is a Judicial Review and why did the Company pursue it?
A: A Judicial Review is an application to the Court to have an arbitration award overturned. We challenged this award because 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 Judge overturned the FOS decision 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.
Q: What did the Court order?
A: The Court overturned the FOS decision and ordered the FOS be reheard. In the Judge’s ruling, he specifically noted that the Arbitrator unreasonably based the decision on market comparators which were not part of our competitive climate. In addition, the Arbitrator based her decision on inaccurate information provided by the Union with respect to one of our competitors.
Q: If the Company reverts wages back to pre FOS rates, can they legally collect the over payment and for what period of time?
A: Yes. With the overturn of the FOS decision, it means the decision is no longer in place and the Company can revert wages to what they were prior to the award. In addition, the Company can collect the over payment from August 2023 up to the date of the Judicial Review (October 18, 2024).
Q: The Union has stated they are appealing the Judge’s decision, what does this mean?
A: The Union has made an application to the Court of Appeal. This means that another hearing will take place. The Union is asking that the Court of Appeal reinstate the Arbitrator’s ruling or, in the alternative, have the FOS go back to the same Arbitrator.
Q: How long can the Appeal process take?
A: Hearing dates for matters such as these typically take a long time to get booked. Our best guess is that we will be booking dates into the fall/winter of 2025.
This is yet another reason why we believe it is in the best interest of all teammates for the Company and the Union to meet to discuss a resolution that could benefit all parties involved.
Q: Who are the relevant competitors for Safeway in Alberta?
A: There are many competitors in Alberta in the grocery industry. In the full-service grocery segment, the major competitors are Sobeys, Safeway, Walmart, Real Canadian Superstore, Co-Op and Save On, amongst others.
Q: Why isn’t Metro in Ontario a relevant comparator?
A: Metro operates grocery stores in Ontario and Quebec. They do not compete in the Alberta grocery market.
Q: When is the earliest that bargaining for a new Collective Agreement could commence?
A: The parties can voluntarily agree to commence bargaining for a new Collective Agreement at any time. But the only way one party can force the other to the table is by serving a notice to commence collective bargaining. The Collective Agreement provides that the earliest either party can serve notice to commence collective bargaining is 120 days prior to the expiry of the Agreement (August 9, 2025), which would be April 11, 2025.
Q: When is the earliest a strike could occur?
A: A legal strike can only take place after a legal strike vote has occurred. A legal strike vote can only take place after all of the following has occurred: a notice to commence bargaining has been provided, the Collective Agreement has expired (August 9, 2025) and bargaining has occurred.
Q: Will the Company revert wage rates and take back overpayments?
A: We need to act quickly to address this challenging situation. We have advised UFCW 401 that we will hold off on taking any action on wages until January 26, 2025, in order to provide time for the parties to find a solution. If one cannot be found, the wages would revert on January 26, 2025, and the Company will seek to collect the overpayments.
Q: How will the collection of the overpayments work?
A: The Company will follow its normal process of sending individual letters to employees, outlining the overpayment and providing various options for repayment.
Q: I don’t want my wage rate to change or an overpayment to be collected, what can I do?
A: It is very important you speak with your Union representative and encourage them to negotiate 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: Can the Union call a strike before the Collective Agreement expires if the Company starts to collect the overpayments from the top-rated and overscale employees?
A: No, even if the Union believes the Company’s collection activities are illegal, it cannot call a strike. The Labour Relations Code does not permit a union to strike whenever it thinks an employer has done something wrong. There are legal procedures for raising objections that must be followed. That’s why our Collective Agreements have a grievance procedure.
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.
Frequently Asked Questions – Alberta Safeway Judicial Review Next Steps
Q: What is a Final Offer Selection (“FOS”) and how did it affect me?
A: Final Offer Selection (FOS) is the legal process that was written into the Collective Agreement after the last round of negotiations. The language in the Collective Agreement was agreed to by the Union and the Company and was ultimately ratified by employees in 2020.
The FOS language in the Collective Agreement states that if the Company and the Union are unable to come to an agreement regarding top-rate and overscale wages for the 2023 and 2024 wage reopener, an Arbitration will occur. The Arbitrator essentially acts as the ‘judge and jury’ and must choose between the Union’s wage position or the Company’s wage position.
The Final Offer Selection Decision came out on November 20, 2023.
Q: What is a Judicial Review and why did the Company pursue it?
A: A Judicial Review is an application to the Court to have an arbitration award overturned. We challenged this award because 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 Judge overturned the FOS decision 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.
Q: What did the Court order?
A: The Court overturned the FOS decision and ordered the FOS be reheard. In the Judge’s ruling, he specifically noted that the Arbitrator unreasonably based the decision on market comparators which were not part of our competitive climate. In addition, the Arbitrator based her decision on inaccurate information provided by the Union with respect to one of our competitors.
Q: If the Company reverts wages back to pre FOS rates, can they legally collect the over payment and for what period of time?
A: Yes. With the overturn of the FOS decision, it means the decision is no longer in place and the Company can revert wages to what they were prior to the award. In addition, the Company can collect the over payment from August 2023 up to the date of the Judicial Review (October 18, 2024).
Q: The Union has stated they are appealing the Judge’s decision, what does this mean?
A: The Union has made an application to the Court of Appeal. This means that another hearing will take place. The Union is asking that the Court of Appeal reinstate the Arbitrator’s ruling or, in the alternative, have the FOS go back to the same Arbitrator.
Q: How long can the Appeal process take?
A: Hearing dates for matters such as these typically take a long time to get booked. Our best guess is that we will be booking dates into the fall/winter of 2025. This is yet another reason why we believe it is in the best interest of all teammates for the Company and the Union to meet to discuss a resolution that could benefit all parties involved.
Q: Who are the relevant competitors for Safeway in Alberta?
A: There are many competitors in Alberta in the grocery industry. In the full-service grocery segment, the major competitors are Sobeys, Safeway, Walmart, Real Canadian Superstore, Co-Op and Save On, amongst others.
Q: Why isn’t Metro in Ontario a relevant comparator?
A: Metro operates grocery stores in Ontario and Quebec. They do not compete in the Alberta grocery market.
Q: When is the earliest that bargaining for a new Collective Agreement could commence?
A: The parties can voluntarily agree to commence bargaining for a new Collective Agreement at any time. But the only way one party can force the other to the table is by serving a notice to commence collective bargaining. The Collective Agreement provides that the earliest either party can serve notice to commence collective bargaining is 120 days prior to the expiry of the Agreement (August 9, 2025), which would be April 11, 2025.
Q: When is the earliest a strike could occur?
A: A legal strike can only take place after a legal strike vote has occurred. A legal strike vote can only take place after all of the following has occurred: a notice to commence bargaining has been provided, the Collective Agreement has expired (August 9, 2025) and bargaining has occurred.
Q: Will the Company revert wage rates and take back overpayments?
A: We need to act quickly to address this challenging situation. We have advised UFCW 401 that we will hold off on taking any action on wages until January 26, 2025 in order to provide time for the parties to find a solution. If one cannot be found, the wages would revert on January 26, 2025 and the Company will seek to collect the overpayments.
Q: How will the collection of the overpayments work?
A: The Company will follow its normal process of sending individual letters to employees, outlining the overpayment and providing various options for repayment.
Q: I don’t want my wage rate to change or an overpayment to be collected, what can I do?
A: It is very important you speak with your Union representative and encourage them to negotiate with the Company.
We urge you to fill out the Union survey; encouraging the 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 wages 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: Can the Union call a strike before the Collective Agreements expires if the Company starts to collect the overpayments from the top rated and overscale employees?
A: No, even if the Union believes the Company’s collection activities are illegal, it cannot call a strike. The Labour Relations Code does not permit a union to strike whenever it thinks an employer has done something wrong. There are legal procedures for raising objections that must be followed. That’s why our Collective Agreements have a grievance procedure.
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.
Safeway Reaches Out to UFCW Local 401
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.
Brett Kissel announces First Ever Drive-In Country Music Concert together with Safeway Canada, in support of Food Banks Alberta
Tough times don’t last, tough people do. Those words have never been more relevant as the world faces the challenges of the unprecedented COVID-19 pandemic. Together with Safeway Canada, Brett Kissel is proud to announce ‘Brett Kissel – Live at the Drive-In,’ a first of its kind social distancing drive-in country music concert taking place on Saturday, June 13th at the main parking lot of the River Cree Resort and Casino outside of Edmonton, Alberta. Safeway Canada’s support ensures one hundred per cent of the event’s ticket-sales will go to Food Banks Alberta. The unique concert will also be streamed live across Canada, with media partner details to be announced.
“Music, and specifically country music, serves as a soundtrack to our lives. Obviously, the last few months have been an incredibly difficult chapter in all of our stories here in Canada and throughout the world,” said Kissel. “Through performing this one-of-a-kind drive-in show, I want to use live music to bring some light and happiness to people. I want to say thank you to all of those who have been on the front lines during this pandemic and to do what we can to make a difference supporting those in need. I want to support everyone through something that I miss – that we all miss, very much – live country music.”
‘Brett Kissel Live at the Drive- In’ concert is one-way Safeway Canada is supporting local communities through its Community Action Fund. Initiated at the beginning of the COVID-19 pandemic, the Community Action Fund empowers 1,500 stores across the country to inject millions of dollars into Canadian communities. The fund has helped deliver food and critical funds to food banks and a range of other community organizations in need across Canada.
“When Brett reached out about creating a first of its kind drive- in country concert, the idea resonated strongly with our team at Safeway. Brett’s song ‘Tough Times Don’t Last, Tough People Do’ has inspired our frontline teammates throughout this crisis. At Safeway, we want to ensure that our community partners, such as Food Banks Alberta and others across the country, are not forgotten during this crisis,” said Sandra Sanderson, Senior Vice President, Marketing, Sobeys Inc. “We hope this unique social-distancing music event will inspire Canadians to help one another during these tough times and give back to the most vulnerable people in our communities.”
Concert attendees will also be encouraged to ‘text to donate’ to Food Banks Alberta and Safeway Canada will match donations up to $25,000 over the course of the concert. Safeway is proud to contribute millions of dollars in food and funds each year to address hunger across Western Canada.
Organizers have worked alongside Alberta Health Services and Health Canada to ensure that all health guidelines and safety measures for proper social distancing are in place and adhered to for the safety of all concert guests, performers, and staff. Full event information and health guidelines are available online at drivein.brettkissel.com.
Tickets for this very special performance go on sale on Monday, May 25 at 10:00 a.m. via Ticketmaster (www.ticketmaster.ca). Admission for the 60-minute performance is $50.00 per vehicle, plus applicable fees, and taxes. Additional performances may be added later.
Join us in support of the Rich Valley Arena – voting starts tomorrow!
For the last 13 years, Kraft Hockeyville has launched an annual search for the most deserving hockey arenas in local Communities across Canada that are in need of renovations and repairs.
After reviewing countless submissions, Kraft narrows down the entries to the very best of the best, and four finalists go head-to-head in a final round of public voting to determine who will be crowned the next Kraft Hockeyville. The lucky winner takes home $250,000 to upgrade their local arena and the chance to host an NHL pre-season game. Pretty cool, right?
Even cooler is that our very own neighbour, the Rich Valley Arena, has been selected as a finalist in the 2019 Hockeyville contest! And we can help them win!
Our country’s passion for hockey runs deep in Alberta, and we know how important the Rich Valley arena is to your community. After a heartbreaking season of operational issues and little funds to support repairs, there’s no one more deserving than Rich Valley. We need your help to make sure they come out on top!
Voting opens tomorrow, Friday, March 29 and will remain open until 8:30 p.m. ET this Saturday, March 30. Don’t be shy – you can vote as many times as possible during the voting period!
Our Stony Plain, St. Albert and Spruce Grove Safeway stores are also on-board to support and will be driving awareness throughout the voting period with in-store marketing, cashier prompts at point-of-sale, and contest prizing.
We know that the arena has always been a staple in Rich Valley. It is a meeting place – it brings the community together, unities families, and maintains a deep-rooted love for the sport of hockey. We’re confident in the power of our Safeway network and know that we can achieve great things together. Let’s join forces, lend a hand to our neighbours in need and start voting!
Stay up-to-date with us at www.safewaytalks.ca.
An update on UFCW 832 negotiations
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