Refinery CEO rebukes Unifor’s actions
Two parties in bitter, months-long dispute heading back to mediation
Federated Co-operatives Ltd. CEO Scott Banda rebuked Unifor’s actions in the ongoing Regina refinery lockout at the company’s annual general meeting, even as the two parties head back to special mediation in an effort to resolve the months-long labour dispute.
Banda’s speech to delegates began with themes of environmental sustainability, employee diversity and highlighting the company’s strong finish to the fiscal year — but the tone suddenly shifted when discussing employee compensation and Unifor Local 594, which represents workers at FCL’S Regina refinery.
The union and FCL have been locked in a bitter months-long labour dispute largely hinged on pensions.
The union served a strike notice in December and members have been locked out since.
The dispute between the union and the employer has been marked by blockades and protests outside FCL businesses across Western Canada.
The conflicts have been compounded by volleys of rhetoric, with the union claiming the company has neglected its promise to workers and criticizing its use of temporary workers at the refinery.
“It has been a constant barrage over the past three months,” Banda said. “And at every turn we have met them and resisted their tactics.”
The company has countered by describing Unifor’s blockades as illegal and suggesting the union’s actions are not conducive to bargaining. Banda rejected the premise that his own comments would have that effect.
“There’s been a lot of theatrics on the other side and we’re just not interested in playing those games,” Banda told reporters in Saskatoon on Monday.
Unifor spokesman Ian Boyko said the union would not comment on Banda’s statements, citing talks overseen by special mediator Vince Ready that were set to resume Monday. Ready, an experienced mediator, was appointed by the province last month.
Union members protested outside TCU Place in Saskatoon over the weekend, but were not present Monday during the AGM.
Unifor 594 spokesman Scott Doherty told the Saskatoon Starphoenix last month that the union’s blockades were intended to maintain “economic pressure” on the company throughout talks.
Banda said Unifor’s actions have not affected the company’s retail sales, though he acknowledged blockaded businesses were “another story.” He stressed there was no shortage of the refinery’s products.
For the 2019 fiscal year, FCL reported revenues of $9.2 billion — a slight drop from its record-breaking $9.6 billion in 2018. The company’s earnings similarly dropped from $1.1 billion to $959 million. It returned $649 million of its profit back to member co-ops, down from $789 million in 2018.
In his address to nearly 300 delegates, Banda suggested that amount would have been higher if it were not for the pension guarantees for refinery workers. The rest of Banda’s speech dealt largely with financial highlights and questions of social responsibility, particularly how the threat of climate change would create new regulatory and moral obligations for the energy sector. President Sharon Alford stressed employee diversity and well-being in her address, encouraging delegates to open their doors to different demographics of employees.
According to the company’s consolidated financial statements, sales from energy fell $430 million over the last fiscal year and net income fell more than $70 million.
“The biggest challenge we have in business is certainty,” Banda said. “What is that regulatory and policy environment (for fossil fuels) going to look like?”