Fraser Valley/Stellerton NS – Safeway is now owned by Sobey’s. That happened in December 2017, when Sobey’s announced it would convert 25 per cent of Safeway’s in Western Canada.
Abbotsford and Chilliwack will be part of the changeover. In fact, in BC alone, Abbotsford, Aldergrove, downtown Chilliwack, Ladner, Maple Ridge, Mission, Broadmoor and Blundell in Richmond, and Strawberry Hills and Newton in Surrey. They will become the discount brand – Fresh Co.
The Company Media release can be found here.
The owners announced progress implementing a labour decision provided by a Special Officer appointed by the Government in British Columbia. The decision sets terms that provide a framework to improve store profitability and enable conventional Safeway stores to compete on a level playing field in B.C. The decision also advances the Company’s plans to expand FreshCo into Western Canada.
“We are in the midst of turning around our Western Canadian stores. We have improved our standards, execution and marketing,” said Michael Medline, President and CEO of Empire. “We are extremely proud of the progress our teammates in the region are making. This decision in B.C. is a major building block in improving our customer service, employee relations, profitability and flexibility in the West.”
The decision by the Special Officer in B.C. allows for the Company to offer voluntary buyouts to eligible long-service B.C. Safeway employees. These buyouts provide flexibility and stability for the Company to better manage labour and operational costs in B.C. The Company estimates the cost of the buyouts will be approximately $35 million depending on take-up of the offer by employees and will be charged to operating earnings during the third quarter of fiscal 2019.
In BC, some 610 termination notices were issued as the transition takes place. 146 in Abbotsford on South Fraser Way and 115 at the downtown Chilliwack location.
A member of the BCGEU told FVN on condition of anonymity that the UFCW
United Food and Commercial Workers International Union and the
Bakery, Confectionery, Tobacco Workers and Grain Millers’ International Union may have something to say before the layoffs happen.
