Loblaw and union reach tentative deal to avert strike

Delayed picketing to start July 11 if pact is voted down

Less than two days before a July 5 deadline, Loblaw and its workers in three Ontario locals have a tentative deal to avoid a strike affecting 69 stores across Ontario.

The agreement reached Friday will be voted on between Sunday and Wednesday by members of United Food & Commercial Workers (UFCW) Local 1000A; if they reject it, the deferred strike at the affected Loblaw’s Great Food and Real Canadian Superstores could start July 11.

The deferral comes after continued talks between Loblaw and Local 1000A to prevent a strike, which could have seen 12,000 workers walk off the job at 61stores throughout the GTA, Peterborough, Kingston, Ottawa and London.

The strike would have come on the heels of 1,600 workers who have al- ready commenced job action at Loblaw-owned stores in Windsor and the surrounding area. Represented by different UFCW locals, they too will vote on Friday’s agreement.

According to the UCFW, key issues in the dispute have included wages, work schedules, benefits, and limits on third party providers.

Loblaw Cos. Ltd. reported a big jump in profit in its latest quarter as it benefited from major strategic moves, including the purchase of Shoppers Drug Mart, the country’s largest drugstore chain. Canada’s largest grocery company said its net income was up 21.7 per cent from the same time last year, rising to $146 million and its adjusted net income was up 96.7 per cent to $301million.

Loblaw also raised its quarterly dividend by 2 per cent to 25 cents per common share, starting in July.

Loblaw is in fierce competition with non-union rival Walmart, which has been adding more food to its general merchandise stores.