Loblaws and John Lederer Rule Canadian Retail Market - For Now!
Loblaws and Loblaws Presdent John Lederer are ruling the Canadian retail world at this time. In a move that is sure to win approval on Toronto's Bay Street, Lederer is taking dead aim at the UFCW Union. Lederer is determined to cut his single biggest expense - wages - by converting Zehrs, Loblaws and Fortino stores into RCSS and No Frills stores and in doing so he'll either limit the effectiveness or completely break the union.
For those of you reading this, that currently work for Zehrs - well you don't. You are working for LCL (Loblaws Companies Limited). The executives at Zehrs are merely puppets on a string. (Ken Code, you should be ashamed) There is no Zehrs - only LCL. Forget about loyalty. Things are NOT the way they used to be. Things will NEVER be the way they used to be . . .
With four announced Zehrs store conversions to the No Frills banner, many jobs are at stake both now and in the immediate future. Sure there are those with enough senority to bump into other stores. But what happens to those that get bumped out the door? What happens in a few years when there are no Zehrs stores to bump into?
Yes, I can hear you saying, "But, we can still go to work at No Frills."
Sure you can. But at what cost?
Here is the offer to the part time employees, as I see it. (Feel free to write and correct me if I'm mistaken.)
A part time employee with 10 years senority will be offered 1.5 weeks pay for every year of service to a maximum of $10,000.00 If the employee is making $400.00 per week and actually has 10 years of service he would receive $400.00 x 1.5 x 10 = $6000.00 to transfer to the No Frills. After taxes and other deductions the employee would receive approximately $4,000.00. This is the good news.
Employees with 10 Years Service will Lose $6.69/Hour
Here is the bad news. The employee with 10 years service, who is likely at top rate of $15.19 per hour will slot in at the 2601 hourly rate at No Frills. According the the chart provided by the union, the hourly rate for employees at 2601 hours is the princely sum of $8.50 per hour. A drop of $15.19 - $8.50 = $6.69 per hour!
A 44% Wage Cut
So, we work for years to get to a decent wage rate and along come our pals at Loblaws and stab us in the back. While the cost of everything - housing, gas, cars, clothes and yes, Food - RISES, Loblaws wants to CUT our wages!
What is our union doing about this mess? What they usually do - not much. they have launched complaints with the Labour Relations Board. While the company has been planning this action for months if not years, it seems that our union president has been planning his retirement and our secretary-treasurer has been planning his next meal. If we lose these cases, we are in big trouble folks.