Metro contract talks hit deadlock

Labor negotiations between Metro and its striking workers in Quebec have stalled after both sides rejected each other’s latest contract proposals. The dispute centers on a new agreement for employees at the company’s Laval produce warehouse, where workers have been on strike since March 30.

The strike has already cut into Metro’s profits. For the first 14 weeks of its 16-week third quarter, which ends July 4, same-store food sales dropped 1.5% compared to the same period last year. The company now expects adjusted net earnings per share of $1.22 to $1.27 for the quarter, down from $1.52 a year ago, citing lost sales and the costs of its contingency plan.

The striking workers are affiliated with the Confédération des Syndicats Nationaux (CSN) and include employees at the warehouse, as well as some at Metro’s headquarters and support center. The retailer has relied on a contingency plan to keep its 300 Quebec stores supplied during the work stoppage.

On June 18, workers overwhelmingly rejected Metro’s offer by a 95% margin. The union responded with its own proposal on June 25, which the company called unrealistic. Marc Giroux, Metro’s chief operating officer, said the counteroffer “does not provide a basis for a responsible and sustainable settlement,” particularly on monetary issues.

“We are very disappointed that the union came back with an offer that in no way reflects the broader labor market or the competitive reality of our industry,” Giroux said.

The union’s priority is securing wage increases that keep up with rising living costs. Frederic Gervais, a member of the negotiating team and a longtime Metro employee, said wages under the previous contract rose an average of 2.25% annually over five years—far below the inflation workers have faced for housing, groceries, and other expenses.

“A lot of people are having a really hard time making ends meet,” Gervais said. “30 bucks an hour doesn’t cut it.”

Talks began last December, but Metro’s June 18 proposal was its first formal offer. The union’s counter was quickly dismissed, and the company broke off negotiations, according to Gervais. A third-party conciliator, who he said supported the union’s position, has been involved in recent discussions.

He described Metro’s approach as “absolutely deplorable” and accused the company of trying to intimidate workers. “If they’re waiting on the workers to bend and bend and bend just to give in to their intimidation tactics, that’s not going to happen,” Gervais said.

Meetings had been limited to about once a week. Metro is scheduled to release its third-quarter earnings on August 12.