Loblaws Executives Walk Away From the Negotiating Table....Again

Prince Rupert Extra Foods Mediation ground to a halt yesterday when representatives of Loblaws walked away from the negotiating table after rejecting the Union’s latest proposal to settle a new Collective Agreement. The employer left without giving the Union any explanation as to why they were ending talks and with no change to their demand for massive cuts in pay and benefits as part of their plan to convert the store to a “No Frills” banner.

Mediation had resumed on Tuesday, February 16, 2010 after the Labour Relations Board (LRB) found the employer to be guilty of violating Section 11 of the Labour Relations Code.

The LRB finding was based on the fact that the employer had made an inability to pay argument to justify their demands for cuts in pay and benefits, but then refused to disclose financial information to support their claims. The LRB issued an order on February 1st requiring further mediation and also ordered that the employer disclose its financial statements and projections to the Union so the Negotiating Committee could assess whether there was any validity to the employer’s story.

Confidentiality conditions written into the Labour Relations Board decision prevent the Union from describing the details around what these financial documents show. We can say that they conflict with statements made to the Union in bargaining.

In the face of the employers unsavoury tactics the Union Negotiating Committee’s pursuit of a fair settlement continued right through to the most recently tabled proposal which was provided to the employer at 11:59 Wednesday night. Although Loblaws had previously committed to stay late into the evening to negotiate, about ten minutes after receiving the Unions proposal, they simply rejected it and left.

The Labour Relations Board mediator continues to be engaged and the Union remains hopeful that the employer will return to the negotiating table to negotiate a fair settlement for Prince Rupert Extra Foods membership.