Experts criticize Sobeys’ treatment of employees at Safeway…
If you want an objective opinion, here is it.
An article published by the CBC yesterday is drawing increased public attention to Sobeys’ actions over the past few weeks.
In the article, McGill University professor Barry Eidlin is notably direct in his description of how Sobeys has acted toward its own employees.
Eidlin reflects that in his labour relations research, he has never heard of a retroactive claw back of wages in either the United States or Canada, noting that it is “beyond the pale” or over the top and unacceptable.
“It’s just not how collective bargaining is done,” Eidlin is quoted as saying, also noting that Sobeys communicating it would roll back wages if its offer wasn’t taken, in effect, holds the measure over workers’ heads. Eidlin clearly agrees that Sobeys has inappropriately threatened its employees.
“I couldn’t agree with Professor Eidlin more,” says President Thomas Hesse. “In my more than forty years of advocating for workers, I have never seen an employer do this. It is a disturbing symbol of these times where billionaire bullies feel like they must get their way regardless of the consequences.”
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“All you have to do is watch the news. The President of the United States says Canada should become a fifty-first state, and if we don’t, he’ll impose 25% tariffs on our economy,” adds Hesse. “Trump is accompanied by his buddies Elon Musk and Jeff Bezos in threatening Canada. Sobeys has taken a page from this playbook.”
Senior lawyer Stephen Torscher casts doubt on Sobeys’ ability to collect the increases it had paid as part of the union-won award from arbitrator Mia Norrie.
“They paid an amount that they were ordered to pay because of the arbitration and now that got reversed. I don’t know that you would necessarily call that an error, and I think they might have problems having that sort of thing upheld,” said Torscher, who specializes in labour and employment law on behalf of employers.
Sobeys confirms and retreats under union pressure… It is urgent that you read this
Dragged by Local 401 to the Alberta Court of Appeal, Sobeys has now confirmed it will not garnish wages or unilaterally collect increases previously paid to Safeway workers.
In a written statement now provided to the Albert Court of Appeal, Director of Labour Relations – Retail, Morgyn Ahrens, confirmed that:
“Sobeys does not intend to unilaterally recover overpayment made to employees as a result of the Arbitration Award.
In the past, when overpayments have occurred to employees, the practice has been for Sobeys to contact the employee to advise them of the amount and circumstances of the overpayment. Sobeys has also advised employees of their options for repayment and sought to work with employees to establish a repayment plan where necessary.
Sobeys anticipates that it will act according to its past practice in this case and will follow the following steps to collect overpayments:
- Sobeys will contact each employee who has received an overpayment as a result of the Arbitration Award;
- Sobeys will advise each employee of the amount of the overpayment;
- Sobeys will request authorization from employees to deduct the amount of the overpayments (which may occur on a payment plan over time);
- If employees refuse to repay the overpayments, Sobeys does not intend to either take unilateral deductions or to discipline employees. Sobeys would commence a grievance to recover the overpayments, which grievance would follow the process set out in the Collective Agreement.
- In the event that a resolution of the grievance is not reached between the parties as part of the grievance process, then the grievance would be referred to arbitration and an arbitrator or board of arbitration would be convened to hear the grievance.
- Ultimately, the arbitrator or board of arbitration would issue a decision on the repayment.”
“Clearly, the Company has heard the pushback of their employees through their union on this issue,” says President Thomas Hesse. “They say one thing in their stores. But when we drag them to the Court of Appeal, they retreat. Employees need to stand strong with their union. Sobeys has rattled workers but this is not over. Workers need their union now more than ever.”
Their resulting clarification is helpful to our members during this stressful time. We reiterate, if they ask you to repay monies you should JUST SAY NO!
Click here to read Ahrens’ full statement (affidavit) for the Alberta Court of Appeal.
Employees are disgusted
Local 401 President Thomas Hesse is quoted extensively in the article. Hesse is a well-known spokesperson for workers in Alberta media and has appeared on Canada AM and national television programs like Power and Politics.
“UFCW Local 401 President Thomas Hesse said his members wanted a wage increase that would help them better keep up with the cost of living in Alberta, as well as safer workplaces and better benefits.
Hesse also claimed the union asked for a guarantee from the company to not close stores and to not convert Safeway locations to Sobeys-owned discount supermarket FreshCo, out of concern it could lead to lower wages for workers. He said the company declined to promise these measures.
Now, Hesse says, workers are upset with the wage rollback being suggested.‘Employees are disgusted with them,” Hesse said. “Some of them are talking about quitting, talking about going on strike.’
‘To hold this gun to people’s heads without some economic rationalization, without the business being in trouble, a wealthy, very profitable company … it’s criminal and it’s really going to hurt people in a rainbow of ways,’ Hesse said.”
It is not surprising that this story has and will continue to get media attention. The cost of living remains a defining feature of the affordability crisis for grocery workers and customers alike.
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What’s going to happen now?
If you have further questions about Sobeys’ threats, you can call 1-855-HELP-401 toll-free from anywhere in the province to get answers from your union.
Additionally, we are already beginning to prepare for bargaining, notice for which can be served as early as April.
Once notice is served, the Company will be required to meet with your union under law and all the rules under the Alberta Labour Relations Code will apply, including the possibility of taking a strike vote and potential job action.
“Regardless of how you voted on the offer, now is the time to come together and prepare to bargain strong together,” says President Hesse.
“Sobeys engaged in a classic divide and conquer strategy. They have the same lawyers as Cargill and it shows in their actions,” adds Secretary Treasurer Richelle Stewart. “They made one offer to about 3,000 senior employees and an entirely different offer to approximately 3,000 newer employees who are still making their way up the wage scales.”
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“That was completely intentional,” continues Stewart. “The Company was trying to turn Safeway workers against one another and their union in order to get their offer accepted.”
“It was a pick your poison vote,” outlines Hesse. “If you voted yes, you avoided their threats but got stuck with a deficient four-year deal during inflationary times. If you voted no, you got the chance to fight back but faced their threats of rolling and clawing back wages. It was an impossible decision for many.“
While many activists campaigned to further their opinions and beliefs, Local 401 did not recommend either acceptance or rejection.
“The No Campaign was very strong. But those who preferred to vote yes also expressed their views,” notes Hesse. “The vote result is out, but in many ways, it is time to leave it behind, to Come Together, and to push Safeway for a better offer for everyone.”
“It’s time for Round 2! Is there a second offer? Is there a third offer? It’s impossible to predict. But at this time, we need to be stronger than ever. Sobeys cannot sit back and laugh as employees fight with each other and their union. They need to feel the pressure now that comes from a united voice,” reflects Hesse.
Click here to read the CBC article.
What’s most important now is that Safeway workers Come Together to bargain strong once the Company is legally required to come back to the bargaining in just a handful of weeks. At the bargaining table, we’ll be pushing to get every lost penny back, to improve wages, and to build a better future.
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You will see that a Vice President of Sobeys’ parent company, Empire Group, is quoted in the article. His portfolio includes crisis management on behalf of the Company.
“Sobeys has brought a crisis to its hard-working employees. These are good people who do not deserve this,” say President Hesse and Treasurer Stewart. “We vow there will also be a crisis for Sobeys if they keep this up. Maybe their crisis will bring them to their senses.”
Posted on: January 30,2025