Loblaws Companies is being accused of favourtism after it was revealed management staff at its recently closed National Grocers warehouse are being paid an "enhanced" severance package, according to the president of the union representing the 107 employees who lost their jobs in the closure.
The operation closed its doors Friday April 23, with employees receiving just under two month's notice.
“Once again, Loblaw Companies Limited (owner of National Grocers) stoops to a new low,” Derik McArthur, president of the Northern Joint Council of the Retail, Wholesale, and Department Store Union, said.
“Our union has learned that the retail food giant is secretly paying its warehouse management staff enhanced severance of three weeks pay for each year of service up to a maximum of $75,000, while the company is only prepared to pay the workers severance based on employment standards — the lowest possible amount allowed by law,” noted McArthur.
“This definitely confirms our suspicions of Loblaw (Companies) targeting the average worker and northern Ontario workers.”
McArthur said workers have been offered a severance package of one week of pay multiplied by years of service up to a maximum of 26 weeks or capped at about $26,000. They also got an extra week of pay because the company had not given them a full eight weeks notice of the closure of the warehouse.
But Norma Cascanette, wife of Wayne Cascanette, said her husband was expecting more.
“My husband has worked for the company for 37 years," she said. "He did not receive the same treatment that other laid off Loblaw Company workers received where the severance package was enhanced.” She said other workers in other locations received three and four weeks pay times years of service and the cap was as high as $115,000.
“This means Wayne, at his age, 58, has to go out and look for another job.”
Sudbury MP Glenn Thibeault and federal NDP leader Jack Layton raised the issue in the House of Commons on Tuesday, April 27.
“Loblaw's prides itself as being a socially responsible, Canadian-owned company — but it is selling its workers short,” Thibeault said in a press release.
“Last year, they announced their plan to spend $1 billion on store improvements — apparently Loblaw has money for building renovations, but not a fair severance deal for employments who gave 20 to 30 years of their lives to the company,” Thibeault added.
Both Thibeault and Layton sent a letter to Loblaw president Galen Weston, asking him to reconsider their decision and provide these employees the fair treatment one would expect from a well-respected Canadian company, Brian Band, Thibeault's communications director, said.
“They spoke directly with Bob Chant, a senior vice president with Loblaw," Band said. "He has a direct line to Weston. Glenn also raised the issue in the House yesterday (April 27), but the federal government has not responded as yet. It is our hope that Galen Weston will get the message that this is a serious issue being raised locally and in the House of Commons.”
Mayor John Rodriguez has also sent two letters to Weston, protesting both the closure of the warehouse and subsequent loss of jobs as well as the severance package offered to workers.
McArthur said he is waiting for a response from the company. He would not rule out picketing and protects of company owned stores either locally or in southern Ontario.
“Not all the stores involve unions. We are just working out the logistics now. We have asked the laid off National Grocers workers to sign up for possible actions.”
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