Metro Inc. has rejected a union counteroffer aimed at ending a strike at its produce distribution centre in Laval, Que., saying the proposal does not offer a path to a sustainable settlement.
The grocer said it reviewed the counteroffer, which the union presented June 25, and found it does not provide a basis for a responsible and sustainable settlement. Metro pointed to a significant gap between the two sides on monetary issues.
Negotiations stall over wages
The strike began March 30 and involves unionized employees at the distribution centre, transportation and head office. Metro had presented a global settlement offer on June 11 that it said included significant increases, particularly in the first 12 months of the new collective agreement. Employees rejected that offer June 18 on the union’s recommendation.
“We are very disappointed that the union came back with an offer that in no way reflects the broader labour market or the competitive reality of our industry, especially after a 13-week strike,” said Marc Giroux, chief operating officer. “Our priorities are clear: serve our customers, support our operations and reach a negotiated agreement that is responsible and viable in the long-term. We invite the union to work constructively toward a reasonable settlement that will bring an end to this strike and allow operations to resume in a stable and predictable environment for all.”
The two sides have negotiated for several weeks with help from a conciliation officer appointed by the provincial labour minister, Metro said.
Strike disrupts produce supply
Metro said it put a contingency plan in place when the strike began to keep produce on shelves at its 300 stores in Quebec. After a few weeks of ramp-up, the plan stabilized and now supports consistent store replenishment, the company said.
The strike disrupted the supply of fresh produce to those stores, especially in the early weeks, Metro said. It estimates that lower food sales, lost margins and added contingency costs will reduce its third-quarter earnings.
Earnings hit in third quarter
For the first 14 weeks of the 16-week quarter, which ends July 4, Metro reported:
- Food same-store sales: down 1.5 per cent from the same period last year
- Estimated adjusted net earnings per share: $1.22 to $1.27, compared with $1.52 a year earlier
Metro called the impact temporary, tied to the disruption and extra costs from the strike and contingency measures. The company said the estimate is preliminary and could change, and that it will provide a further update at the latest when it releases its third-quarter results on Aug. 12.
