National Grocers will not sweeten its severance package for 107 of the 125 employees being laid off this weekend at the company's Lorne Street warehouse, Derik McArthur, union leader, said.
This is despite a recent public rally, with participation by other union members including Steelworkers Local 6500 and CAW 598, and letters from politicians and union leaders, he said.
McArthur is president of the Retail, Wholesale and Department Store Union.
“Our representative met with the company April 19," McArthur said. "He was told the company was not prepared to change its offer.”
The company is giving its employees the lowest possible legal severance package, which is one week of pay times years of service, but capped at 26 years or about $26,000. When Loblaws Companies, the company that owns National Grocers, closed other warehouses in southern Ontario and Quebec recently, employees received three to four weeks of pay times years of service, up to $115,000, McArthur noted.
Greater Sudbury Mayor John Rodriguez has written two letters to Galen Weston, CEO of Loblaw Companies to complain about the treatment of local workers by the company. Federal NDP leader Jack Layton also wrote to protest, McArthur said. "They don't seem to care,” McArthur said of Loblaws.
The exact closure of the warehouse is expected April 24, but the union is still unsure about the exact timing.“The warehouse is empty now," McArthur said. "They have brought in security guards. The company is treating the guys like they are criminals.”
Loblaws replied to NorthernLife.ca by e-mail, and confirmed they were not making any changes to the offered severance package.
The company owns many local food retailers in Greater Sudbury, including Independent Grocer stores, Valumart stores and Real Canadian Superstore in New Sudbury.McArthur would not say whether a boycott would be organized at those stores by the National Grocers employees or by other union members.
“Hopefully we can force (the company) back to the table,” McArthur said. He said the union's bargaining committee will meet this week to discuss its next steps.
