After more than a month of strike at its automated distribution center in Terrebonne, Sobeys management now claims to be reassessing its entire network of warehouses in Quebec.
The Canadian Press was able to read a letter sent by Sobeys management to all owners, managers and general managers, mentioning this “contingency plan” which had to be deployed following the strike of some 190 workers at the Terrebonne distribution center. “Despite our desire to work in Quebec, we are currently reassessing our entire network of warehouses in the province,” senior management wrote in the missive.
The purchase of land located in other provinces is also under study, in order to ensure a continuous supply of stores, it is stated in this contingency plan. “Several optimization options with our networks in Ontario and the Maritimes, as well as the purchase of land located in other provinces are being studied, in order to ensure the best possible level of service and to avoid any interruption of service in the future”, it is also written there.
Senior management mentions the fact that following the labor dispute in Terrebonne, it has already had to call on its other centers in Ontario and the Maritimes, in order to maintain supply to the stores.
Via email, the media relations department explained their perspective: “We are always looking for ways to improve our supply chain and distribution center network. If there’s one thing the pandemic has taught us, it’s that a strong and resilient supply chain network is critical to our success. Many issues have caused us to re-evaluate our network, and a work stoppage is another example,” he wrote.
“To continue to support our stores and our customers in Quebec, we are leveraging our neighboring warehouses in Quebec, Ontario and the Atlantic,” he adds.
“We are used to”
As for the United Food and Commercial Workers union, local section 501, lawyer and negotiator Kim Bergeron welcomed the information “without surprise”, in a context where labor relations are difficult. “Threats, we’re used to it,” she says. She believes this Terrebonne warehouse is essential, “the most competitive”, according to her, and modern, “which has cost the employer millions”.
Sobeys management says pay for these warehouse workers reaches nearly $30 an hour at the top of the scale. Mand Bergeron confirmed the amount of $29.50 per hour.
Management says union demands mean a 25% increase in the first year, which would amount to $25 million. These requests “are significantly higher than the market average”, criticizes the management. “The union’s demands will not allow us to remain competitive on the Quebec market,” argues Sobeys management.
On the union side, Mr.and Bergeron replies that the Terrebonne strikers want to obtain parity in terms of working conditions with their colleagues in Boucherville, and parity in terms of wages with the workers of a warehouse who reached an agreement during the pandemic. She did not confirm the percentage increase claimed.
The union’s demands will not allow us to remain competitive on the Quebec market
Sobeys defends itself: “We have a reputation for being fair, but tough negotiators, and we are disappointed that we could not reach an agreement with the UFCW 501. As a national retailer, we negotiate approximately 50 collective agreements every year. We have not had a strike for over ten years. »
In the province, Sobeys is best known for its IGA brand. The UFCW union is affiliated with the FTQ.