In a response posted online, UFCW Local 401 president Thomas Hesse said employees are not deterred by Cargill’s lockout notice
Cargill issued a lockout notice to workers at one of Canada’s largest meat-packing plants on Thursday, a day after unionized workers at the High River facility voted overwhelmingly against the company’s latest contract offer, putting them in a position to strike as early as Dec. 6.
UFCW Local 401 said 98 per cent of its workers at the Cargill plant in High River rejected the offer Wednesday. The next day, Cargill issued a notice to UFCW Local 401 employees that they intend to lock out all workers as of 12:01 a.m. on Dec. 6.
“This is a complete lockout of all employees represented by UFCW at the above noted location,” read the notice signed by Tanya Teeter, Cargill vice-president of labour relations. “After the commencement of the lockout as described above, the form that the lockout takes may vary.”
In a response posted online, UFCW Local 401 president Thomas Hesse said employees are not deterred by Cargill’s lockout notice.
“They are big and they are bad, but we are not afraid. We will bargain from strength, and we will do what our members tell us to do.”
The near-unanimous rejection of the contract offer shows the need for the employer to rebuild trust in the wake of the COVID-19 pandemic, Hesse said.
“Ultimately, it’s counterintuitive for any worker to want to stand on the street, withdraw their labour, take on all the risks associated with that. That is provoked,” Hesse told Postmedia.
“Cargill has made some overtures and has reached out, and I believe bargaining sessions will galvanize between now and Dec. 6 . . . (But) the workers get to decide. If there is an offer of substantial improvement, the workers will get to reflect on that and vote on that as well, maybe before there’s a strike.”
The testy labour dispute heated up two weeks ago, when union leaders issued Cargill a notice that workers would hit the picket line if a new collective agreement cannot be reached.
A strike would come as prices of red meat approach record highs in North America amid global supply chain struggles. A shutdown at the High River facility would inject more uncertainty into that market, as that plant accounts for roughly 40 per cent of Canada’s beef processing capacity, employing roughly 2,000 workers across two shifts and processing about 4,500 head of cattle daily.
Hesse said he believes the workers have public sympathy during the dispute, raising the possibility of a beef boycott if workers go on strike.
In an emailed statement, Cargill spokesman Daniel Sullivan said the company is optimistic an agreement can be reached before the Dec. 6 deadline. He said the company’s proposal reflects the “tremendous skill and dedication” of plant workers.
“We are willing to keep meeting to avoid any labour disruption, which is in no one’s best interest during an already challenging time,” Sullivan said.
“While we navigate this negotiation, we continue to focus on fulfilling food manufacturer, retail and food service customer orders while keeping markets moving for farmers and ranchers. If necessary, we will shift production to other facilities within our broad supply chain footprint to minimize any disruptions.”
Cargill’s High River plant was the site of one of the largest COVID-19 outbreaks in Canada in the spring of 2020. Three deaths were linked to that outbreak, and almost half of the plant’s workers tested positive for the virus.
Hesse said safety and compensation are issues for workers, but said bargaining to date has largely been driven by emotion and conversations around trust.
Twitter: @jasonfherring
TORONTO – Roots Corp. may have built its brand on all things comfy and cosy, but its CEO says activewear is now “really becoming a core part” of the brand.
The category, which at Roots spans leggings, tracksuits, sports bras and bike shorts, has seen such sustained double-digit growth that Meghan Roach plans to make it a key part of the business’ future.
“It’s an area … you will see us continue to expand upon,” she told analysts on a Friday call.
The Toronto-based retailer’s push into activewear has taken shape over many years and included several turns as the official designer and supplier of Team Canada’s Olympic uniform.
But consumers have had plenty of choice when it comes to workout gear and other apparel suited to their sporting needs. On top of the slew of athletic brands like Nike and Adidas, shoppers have also gravitated toward Lululemon Athletica Inc., Alo and Vuori, ramping up competition in the activewear category.
Roach feels Roots’ toehold in the category stems from the fit, feel and following its merchandise has cultivated.
“Our product really resonates with (shoppers) because you can wear it through multiple different use cases and occasions,” she said.
“We’ve been seeing customers come back again and again for some of these core products in our activewear collection.”
Her remarks came the same day as Roots revealed it lost $5.2 million in its latest quarter compared with a loss of $5.3 million in the same quarter last year.
The company said the second-quarter loss amounted to 13 cents per diluted share for the quarter ended Aug. 3, the same as a year earlier.
In presenting the results, Roach reminded analysts that the first half of the year is usually “seasonally small,” representing just 30 per cent of the company’s annual sales.
Sales for the second quarter totalled $47.7 million, down from $49.4 million in the same quarter last year.
The move lower came as direct-to-consumer sales amounted to $36.4 million, down from $37.1 million a year earlier, as comparable sales edged down 0.2 per cent.
The numbers reflect the fact that Roots continued to grapple with inventory challenges in the company’s Cooper fleece line that first cropped up in its previous quarter.
Roots recently began to use artificial intelligence to assist with daily inventory replenishments and said more tools helping with allocation will go live in the next quarter.
Beyond that time period, the company intends to keep exploring AI and renovate more of its stores.
It will also re-evaluate its design ranks.
Roots announced Friday that chief product officer Karuna Scheinfeld has stepped down.
Rather than fill the role, the company plans to hire senior level design talent with international experience in the outdoor and activewear sectors who will take on tasks previously done by the chief product officer.
This report by The Canadian Press was first published Sept. 13, 2024.
Companies in this story: (TSX:ROOT)
The Canadian Press. All rights reserved.
VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, are set to resume today as a strike that has stopped most services drags into a second week.
No timeline has been set for the length of the negotiations, but Joe McCann, president of the Amalgamated Transit Union Local 1724, says they are willing to stay there as long as it takes, even if talks drag on all night.
About 600 employees of the door-to-door transit service for people unable to navigate the conventional transit system have been on strike since last Tuesday, pausing service for all but essential medical trips.
Hundreds of drivers rallied outside TransLink’s head office earlier this week, calling for the transportation provider to intervene in the dispute with Transdev, which was contracted to oversee HandyDART service.
Transdev said earlier this week that it will provide a reply to the union’s latest proposal on Thursday.
A statement from the company said it “strongly believes” that their employees deserve fair wages, and that a fair contract “must balance the needs of their employees, clients and taxpayers.”
This report by The Canadian Press was first published Sept. 12, 2024.
The Canadian Press. All rights reserved.
MONTREAL – Travel company Transat AT Inc. reported a loss in its latest quarter compared with a profit a year earlier as its revenue edged lower.
The parent company of Air Transat says it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31.
The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.
Revenue in what was the company’s third quarter totalled $736.2 million, down from $746.3 million in the same quarter last year.
On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.
Transat chief executive Annick Guérard says demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty.
This report by The Canadian Press was first published Sept. 12, 2024.
Companies in this story: (TSX:TRZ)
The Canadian Press. All rights reserved.
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