LO-BLOWS

By Taz Adamjee

As of Monday July 12, 2010, more than 97 per cent of Loblaw’s 30, 000 store-level employees voted in favour of a strike in response to Loblaw’s attempts to modify pre-existing contract agreements. To compete in a largely non-union industry, Loblaw has demanded members accept a 25 per cent cut in wages, benefits, and pay scales. From a purely numerical standpoint, the demands seem a tad…ridiculous.

To combat the ever growing pressures from the likes of giants Wal-Mart Canada Corp., Sobeys Inc., and Metro Inc., Loblaw has responded by branding its own supermarket and general merchandise store aka The Real Canadian Superstore. According to Loblaw, earnings have declined over the past five years; by modifying existing agreements, Loblaw hopes to become more efficient when taking on the number of non-unionized competitors. Next year in Ontario will see the first time in the history of the grocery industry more non-unionized than unionized employees. Regardless, you can imagine workers’ frustration over proposals that would cut wages by up to 25 per cent.  

According to a statement issued by Julija Hunter, vice-president of public relations of Loblaw, the company is “striving to reach an agreement that would enable the company to continue to meet the demands of today’s highly competitive retail landscape.” The contracts are defined as "a real competitive disadvantage" and "not sustainable."

Let’s take a step back for a moment. In the grocery industry, most employees start at minimum wage (I was in the industry for four years). Full-time employees tend to receive raises at approximately a dollar a year (often less if the individual stores are franchised), only to be capped at approximately $18-$20 an hour. The only individuals who make more tend to be store managers, or the franchise owners themselves. Raises are often hard to come-by; imagine being a dedicated and loyal employee to the Loblaw Corporation, putting in the years to reach a respectable $20 an hour, only to have 25 per cent of your hourly wage cut. You’re instantly talking about losing $3-$5 dollars an hour, or a staggering $10 000 annually.

“That’s completely unacceptable,” pointed out Kevin Corporon, president of Local 1000A of the UFCW. You’re damned right it is.

The strike vote came after talks between UFCW Canada local unions 1977, 1000A, 175 and 633 and Loblaw last month. According to Scott Penner, president of UFCW Local 1977, negotiations thus far have yet “to make any headway.” But with the company’s sales and profits rising, Loblaw must look for ways to prevent what seems like an inevitable strike as workers seek job security. A solution? Perhaps Loblaw should consider a wage freeze as opposed to cutting wages.

Loblaw’s actions seem analogous to a couple of lines from a song I heard a few years ago:

They want employees to go shopping, cook the food, and put it on the table, but Loblaw won't let employees sit down and eat with them; seems ironic for Canada's largest supermarket.

Both sides met Monday for another round of negotiations. Talks are scheduled to continue until this Friday.