A deal has been ratified between Loblaw Cos. Ltd. and the union representing 12,000 of its employees after four days of voting.
One week after both sides resumed negotiations and two days before the strike deadline, United Food and Commercial Workers Local 1000A said Thursday that it had reached a six-year agreement that will cover employees at 60 Loblaws Great Food and Superstore locations across Ontario, as well as two standalone Joe Fresh locations in the Greater Toronto Area. The agreement took effect Thursday.
According to the agreement, obtained by The Globe and Mail, the changes to the June 2 proposal that was previously rejected by 61 per cent of the membership include a lump-sum bonus and changes in wage progression.
All active full-time and part-time employees on the top rate of pay as of the date of ratification will receive a lump-sum bonus of $1,500 and $750, respectively, according to the four-page agreement. All other active part-time employees will receive a lump sum of $350. These lump sums will be paid out within three weeks.
The other major change is in wage progression. All part-time and full-time employees at the top rate of pay will receive a 25-cent wage increase on the date of ratification, compared with 40 cents in the previous rejected agreement. Instead, employees will make 40 cents more an hour in year six; it was 30 cents in the rejected offer. The additional five cents left over will be included in the fifth year.
Part-time employees are guaranteed a maximum of $1 over minimum wage with wage progression at five cents for every 650 hours of service.
Full-time employees will top out at an increase of $1.70 per hour over the life of the contract.
The union membership previously said that wages, schedules, benefits and limits on third-party providers were at issue.
In addition to these changes, the Ontario Ministry of Labour will facilitate and sponsor a program intended to bring the company, the union and employees together to discuss concerns "with a view to improving communications and relationships," according to the document.
The amendments also outline a pilot program for part-time employees, including a two-week rolling schedule for eight to 12 months.
"In 2014, all members were invited to, and hundreds of members submitted proposals to us outlining the changes and improvements they would like to see in their collective agreement," the union said in an e-mail.
When reached for comment, Kevin Groh, Loblaw's vice-president of corporate affairs and communication, said the agreement will provide for a better relationship.
"In a competitive market, the terms of the contract provide both our colleagues and our company a fair deal and security," Mr. Groh said. "Ultimately, it sets the stage for an even stronger relationship."
Striking workers at the nine stores in the Windsor area have also ratified the amended agreement, the union said late Thursday.
"The new agreement merges the three existing UFCW Locals 175 and 633 bargaining units that were involved in this set of negotiations into one bargaining unit moving forward," Shawn Haggerty, president of UFCW Local 175, said in a statement posted on the union website. "The contract will now cover 60 Zehrs Great Food, RCSS (Real Canadian Superstore), and Loblaws stores across the province."
This story corrects an earlier version that incorrectly stated part-time employees would be guaranteed a maximum of 30 cents over minimum wage