For the past year, our Safeway teammates in Alberta have been working hard to provide local families with an essential service that they can count on. We know this is no small feat, but we continue to rise to the challenge and serve our customers with determination and pride. As you know, despite these hurdles, we worked collaboratively with our teammates and UFCW 401 which resulted in a ratified agreement in 2020 – with 90% acceptance – that will help us solidify a strong future in the province.

Making sure that our teammates were positioned for success was important to us, and the agreement contained a number of significant benefits for teammates in converting stores, including:

• An enhanced severance offering (greater than in the previous agreement)
• The option to transfer to another Safeway store, should their location be planned for conversion
• The ability for the 25% most senior teammates in the store, who choose to go to a new FreshCo store, to retain their Safeway economic terms. Those who don’t fall within the 25% most senior will receive a buydown payment and a guaranteed job at FreshCo.

When bargaining with UFCW 401, it was so important to establish conditions that support the introduction of FreshCo stores on existing Safeway pads. We agreed on a process that allowed five months of bargaining and final offer selection arbitration. Not only did the Union ratify the final agreement, but they also received a voluntary recognition agreement for all FreshCo stores in Alberta that didn’t fall on Safeway pads.

We worked together to finalize the new FreshCo agreement as quickly as possible, spending two months bargaining and agreeing to an arbitration hearing for outstanding items. UFCW 401 agreed with the selection of Ms. Norrie as the arbitrator, knowing that she’s highly regarded for being fair and unbiased. The decision issued on February 1, 2021, that UFCW feels is unjust, was the outcome of this arbitration process.

Bargaining with UFCW 401 has been a long process, but from the very beginning, we’ve been open and honest that several Safeway stores are unprofitable. It’s clear that the only way to secure a strong future in Alberta is to introduce a discount option. FreshCo stores allow us to provide customers with the items they want, at the prices they’re looking for, at the same locations where our Safeway stores are currently struggling. Without converting these stores, we have no other option to secure our long-term presence in these markets. While COVID has created a temporary increase in sales, we can’t count on this lift lasting forever, and customers have told us that they prefer to shop at discount grocery stores in several markets.

As we look to the future, we’re confident that we have the hard-working teammates, and the necessary collective agreements, that will help us win together. Thank you for your unwavering dedication to Alberta families during these tough times. Every day, we’re so proud to be on your team.