Sobeys Capital Incorporated v United Food and Commercial Workers, Local No 401

Background:

• Sobeys sought judicial review of an arbitration decision regarding wage increases for certain employees at its Alberta Safeway stores. These employees are represented by the United Food and Commercial Workers (UFCW), Local No. 401.
• The collective agreement included a wage reopener provision for the last two years (2023-2025), requiring arbitration if negotiations failed.
• Arbitration required the arbitrator to select one of the final offers presented by either Sobeys or UFCW.

Arbitration Decision:

• Sobeys proposed a 1.5% wage increase in 2023 plus a $1000 lump sum (total 2%) and a 2% increase in 2024.
• UFCW proposed a 5% wage increase for each year.
• The arbitrator selected UFCW’s offer.

Sobeys’ Arguments:

• Alleged procedural unfairness and failure to consider required factors like economic and competitive climate.
• Sobeys highlighted that Superstore, its key competitor, had significantly lower wage increases.

Court’s Decision:

• The court ruled that the arbitrator's decision was unreasonable. Justice Poelman found that the arbitrator did not give proper weight to the competitive climate of Sobeys' business, particularly Superstore’s wage structure.
• The decision was quashed, and the matter was referred to a new arbitrator for determination.
• No specific monetary award was granted in this judicial review.