October 8, 2006

Loblaw
settles with union

Globe and Mail
by MARINA STRAUSS
 

A strike in Loblaw Cos. Ltd.'s key Ontario market has been averted following a tentative agreement reached Friday between the grocer and the union representing supermarket employees.

The United Food and Commercial Workers members will hold meetings next week to decide whether to ratify the proposed settlement, although no details were available.

“After weeks of difficult and complex negotiations and round -the-clock bargaining UFCW Canada and Loblaw Cos. Ltd. have been able to reach a tentative agreement,” said national director Wayne Hanley, along with two other local union leaders.

“This is a good collective agreement for our members reflecting all the dynamics that have been involved in these negotiations.”

Union leaders had warned that the Loblaws, Real Canadian Superstore and Zehrs supermarket employees in Ontario could be out on strike by today, just before the long Thanksgiving weekend.

A key issue in the talks was the company's plan to replace its conventional supermarkets with superstores, and lower the compensation of employees in those stores. Union members had pointed out that in 2003, Loblaw had assured the UFCW that it would not ask for further wage or benefit concessions in future contract negotiations.