As shared with you in August, top-rated teammates were awarded their second wage increase. This said, Safeway continues to challenge the Arbitrator’s ruling on the Wage Reopener, and there may need to be difficult decisions taken.

It can’t be reiterated enough that the wage increases for top-rated teammates have negatively impacted the profitability of the stores and resulted in many locations becoming unprofitable. Safeway is now in an extremely uncompetitive position compared to the rest of the Alberta grocery industry.

As a result, the organization is required to assess if further action is needed to address this challenging position. All options are being considered including closures, conversions, and hours reductions — any of which could result in the potential loss of jobs.

Having to make any of these choices would be extremely difficult, and the organization doesn’t take the evaluation process lightly given the potential magnitude of impact. It’s because of this reluctance to make any of these tough choices that Safeway has no other option than to continue to challenge the Arbitrator’s ruling.

Further updates and details on the judicial review process and any difficult choices that must be made will be shared with you.