FreshCo and Sobeys: one company, one fight
Are they really separate companies? We don’t think so, and we’re taking action to prove it.
Sure, you’ve probably been to a FreshCo before, Anna, and noticed lower prices on produce or fewer services available to you. All to diminish service to the customers, rake in the profits, and sell the idea that you’re saving big on the same products you’d find at other grocery stores.
But is that truly a deal for customers or just a smokescreen for a business model that cuts corners on workers and service while boosting corporate profits?
FreshCo operates under a franchise model, but some may suggest the puppeteer pulling the strings behind the scenes is the big corporation: Sobeys. That means FreshCo workers face an even tougher challenge when it comes time to negotiate collective agreements. Why? Because it’s not the multimillion-dollar corporation (Sobeys) sitting across the bargaining table. It’s the franchisee. Obviously, franchisees work with limited resources, while big corporations, like Sobeys, have deep pockets and the financial muscle to back them up.
UFCW Local 401 wants to change that in Alberta.
That’s why the union has recently filed something called a Common Employer Application with the Alberta Labour Relations Board (ALRB). This is a legal request asking the Board to recognize that FreshCo and Sobeys are not truly separate companies.
Even though FreshCo stores may appear independent, we believe Sobeys makes the decisions, sets the rules, directs the work, and controls what happens on the ground. If that’s the case, Sobeys should be held accountable at the bargaining table when it comes to negotiating your union contract.
WHAT IS A COMMON EMPLOYER APPLICATION?
A Common Employer Application is used when a big company tries to hide behind a separate brand or franchise to avoid dealing fairly with workers, especially with unions. It’s a way to get the Labour Board to say, “No, you’re actually the same employer, and you can’t dodge responsibility.” This matters because right now, each FreshCo store negotiates separately, store by store, which weakens our ability to fight for better wages, benefits, and job security. When stores are divided, it benefits the corporation, not the workers.
WHAT DOES FRANCHISING REALLY MEAN?
Franchising is a business model where big corporations like Sobeys allow other people to run stores under their brand name, but in many cases, the corporation still controls major decisions like pricing, hours, staffing, and policies. It’s often used to avoid strong union contracts and reduce costs, which usually means cutting corners on workers’ wages and protections. It’s a way for multi-million-dollar companies to keep profits high by keeping workers weak and divided.
WHY DOES THIS MATTER NOW?
We’re living in uncertain times, the cost of living keeps going up, and our paycheques don’t stretch as far as they used to. That’s why it’s more important than ever for workers to stand together.
If you want to read our application to the ALRB, click HERE.
We’re following the lead of UFCW 1518 in British Columbia
Last year, UFCW Local 1518 made a similar Common Employer Application in British Columbia. Sobeys fought that application twice. And twice, the Courts ruled in favour of the union, finding that Sobeys and FreshCo are common employers.
We expect Sobeys to fight our Alberta application just as hard. But we’re ready.
What exactly does this mean for workers at Local 401?
If the Alberta Labour Relations Board agrees that Sobeys and FreshCo are common employers, it could be a game-changer for FreshCo workers across the province. Instead of negotiating separate contracts store by store, all FreshCo workers would bargain together, united under one voice. It would also be a game-changer for Safeway employees, as it would enhance our ability to push Sobeys at two levels instead of one.
Additionally, it would discourage Sobeys from converting Safeway stores into FreshCos, as it would send the message that they cannot easily weaken the union.
That kind of unity gives workers more bargaining power. Sobeys would no longer be able to play stores off one another or isolate negotiations. It means better coordination, stronger support, and more pressure at the bargaining table.
Simply put, we’d be in a much better position to win real improvements in wages, benefits, and working conditions.
Why should I care if I don’t work at Sobeys or FreshCo?
When UFCW Local 401 takes action, your bosses are paying attention. It sends a clear message: they can’t mess with you. It also makes them think twice about trying to restructure the business in ways that strip away your union rights, wages, or benefits.
That’s why it’s so essential we stand together behind Local 401’s strategies and tactics. We need to make it crystal clear to every employer that an injury to one is an injury to all.
It’s easy to feel powerless against big corporations on your own. But 401’s message is a collective one: all of us, united. It reminds the world that workers are never alone.
What Happens Next?
While the legal process plays out, UFCW Local 401 is still preparing for bargaining at each individual FreshCo location. We are at the table with nine of them out of over twenty different stores with different collective agreements.
Safeway bargaining is about to begin, and at those negotiations, we’ll be asking Safeway to guarantee that no stores will be closed and that no more locations will be converted to FreshCos.
In the meantime, we’re not waiting. We’re organizing, supporting members, and getting ready.
Questions or Concerns? Let’s Talk.
If you have any questions about the common employer application, or FreshCo negotiations, please reach out to:
Chris O’Halloran, Executive Director
cohalloran@ufcw401.ab.ca
587-999-6448
We’ll keep you updated as the legal process continues. In the meantime, stay strong and stay informed.
This is about standing up together for your rights, and we’re following the proven path paved by our union comrades at UFCW 1518 in BC.
Posted on: September 04,2025