A Food Basics store is set to replace a Metro grocery store in Ottawa’s South Keys area this autumn, leading to the displacement of numerous employees. Metro Inc. disclosed that the decision to convert the store was made to align better with customer demands in the region. The company stated that adjustments to their store network are regularly conducted based on various factors, such as local market conditions and store performance.
The announcement came as a surprise to workers at the Southgate Metro, including Justin Braganza, a veteran meat cutter at the store for over three decades. Braganza, also a volunteer steward with the United Food and Commercial Workers union, mentioned that they were notified of the closure in May due to financial challenges, including increased rent and concerns about the store’s profitability under the Metro brand.
Despite inquiries about rent costs influencing the conversion, Metro emphasized that the decision was primarily influenced by local market dynamics and customer preferences. The Southgate Metro employed a total of 72 individuals, with the company confirming that, as per their collective agreement, these employees do not have the option to transfer to other Metro stores.
The transition to the new Food Basics store will see the hiring of a minimum of 10 part-time and five full-time employees from the former Southgate Metro staff who apply for positions at the new location. However, the different wage structures between Metro and Food Basics have left some employees, like Braganza, concerned about their future job prospects due to potential role disparities.
The United Food and Commercial Workers union negotiated enhanced options for affected workers, including job opportunities at the Food Basics store and improved severance benefits. Legal experts highlighted the potential for labor disputes and the complexities surrounding company decisions to rebrand or close down operations, with avenues for unions to challenge such actions.
Braganza expressed his disappointment and the challenges faced by employees in finding new employment, highlighting the emotional toll of parting ways with colleagues and customers they have built relationships with over the years.