Union objects to company's 'close or convert' position
A British Columbia Labour Relations Board ruling has further muddied the already contentious labour dispute between Extra Foods in Prince Rupert, B.C., part of Loblaw Companies Ltd., and UFCW Local 1518.
In a recent ruling, the board ordered the company to repay workers whose hours were reduced earlier this year, in what it deemed an illegal lockout.
The two sides have been negotiating for nearly a year. At the heart of the dispute is Loblaw’s desire to convert the store to its discount “No Frills” banner and impose that store’s collective agreement. The UFCW says workers would see their wages drop from $18 to $20 per hour, to less than $12.
“Loblaws has refused to bargain on anything but that position. That's the key issue,” says Andy Neufeld, UFCW Local 1518 director of communication.
Last fall, Extra Foods told employees the store would be closed in January 2010 unless workers agreed to the No Frills agreement. The union ordered a strike vote for January 12 and, according to the LRB ruling, on the day before, Extra Foods started reducing its stock.
Sales decreased and the store eventually cut its staff by about half. Night crew staffing went from 170 hours per week to 72, produce workers saw their hours cut from 80 to 18 and general staff hours fell from 70 hours per week to four.
“We think they were trying to intimidate the members,” says Neufeld. “It’s quite likely they were trying to send a message that unless they bowed to their demands, these were the circumstances they were going to face.”
A month later, the store gave employees a letter stating “there will not be strike pay because there will not be a strike. Our store will either close or convert.” In the LRB ruling, Extra Foods says it cut back on inventory as a “prudent financial decision” because the store’s franchise owner would have to absorb the cost of inventory upon closing.
In February, the store also filed a last-offer application.
The board considered the timing of the reduction in hours and stock, the pending last-offer vote and a letter sent to employees in February stating they would be asked to decide the future of the store –– “you will decide if we close or convert to No Frills.”
It ruled the partial closure of the store was illegal because employees had not yet voted on the final offer and, if they had voted in favour, the store would have stayed open.
Neufeld is satisfied with the ruling. He expects the 50 workers affected will earn back close to $50,000.
“It recognizes that employers who should be at the negotiating table bargaining in good faith –– when they pull these kinds of heavy-handed stunts –– it’s a lot more effective to come to the table,” he says.
In a prepared statement, Craig Ware, director of corporate affairs, Western Canada, Loblaw Companies Ltd., said the company has “worked diligently and in good faith with UFCW Local 1518.”
He added, “As it exists now, this Extra Foods location is no longer viable to operate. Unfortunately continued efforts to reach an agreement with the union have been unsuccessful. As a result, this Extra Foods location will close permanently on June 2, 2010.”
The UFCW and Loblaws are involved in a similar dispute at the Extra Foods store in Maple Ridge, B.C. over the same issues.
“We have Safeway and Save On-Overwaitea Food Group — the dominant players in the industry — and we have contracts with them that are substantially better and those companies are doing just fine,” Neufeld says. “Loblaws, in the view of us out in B.C., they’re simply trying to impose a lower-cost contract and suck even more money back to the head office in Toronto.”
