Union attacks Wal-Mart for closing garage Operation had collective agreement

The Gazette

Friday, October 17, 2008

Union leaders accused Wal-Mart Canada Corp. of disregarding Quebec's labour laws and the Canadian Charter of Rights and Freedoms, after the world's largest retailer yesterday closed its first garage with a collective agreement.

"It's clear to us that this was an anti-union act," said Louis Bolduc, vice-president of the Quebec Federation of Labour. "The government, through the auspices of the Department of Labour, should intervene to ensure that companies like Wal-Mart - and others - respect the law."

It's not the first time Wal-Mart has faced allegations of union-busting in Quebec. In 2005, the retailer came under fire for closing a unionized store in Jonquière, arguing that the outlet wasn't profitable.

Yesterday, Wal-Mart said it was forced to close its unionized Tire & Lube Express in Gatineau because the five garage workers' new contract had driven up costs by one-third.

The retailer has found new positions for the five employees.

In August, a Quebec arbitrator imposed a collective agreement that gave the workers a 33-per-cent raise - a hike in costs that the retailer said would have to be passed on to customers. Bolduc asked how Wal-Mart could argue the raises were too steep when the retailer pays higher wages to garage workers in Montreal.

But Yanik Deschênes, a spokesperson for Wal-Mart Quebec, said the garages operate on such tight margins that any increase in costs is hard to absorb.

Over the last two years, the retailer has closed eight Tire & Lube outlets in Canada - and is poised to shut another one in Brampton, Ont. - because the garages weren't making money.

"These closings had nothing to do with union activity," Des-chênes said. "There's no business that will agree to run a department that's not profitable."

Wal-Mart Stores Inc. posted second-quarter profit of $3.45 billion U.S., or 87 cents a share, up 17 per cent from $2.95 billion, or 72 cents a share, a year earlier.

Wal-Mart's shares rose $4.57 to $54.62 yesterday in New York.

In Quebec City, Labour Minister David Whissell asked for a detailed report on the garage closing, a spokesperson said. "The minister will take the time to analyze the situation," Marisol Schnorr said.

The retailer is in arbitration with United Food and Commercial Workers Canada to draw up a first contract for employees at a Wal-Mart in St. Hyacinthe.

The closing doesn't mean the retailer would automatically shut the St. Hyacinthe store, Deschênes said. "Everything is different," he said. "Right now, we are continuing the arbitration process."

Although the closing of the garage affected only a handful of workers, it's a symbolic blow to the union, which has been attempting to unionize Wal-Mart stores across Canada and the United States.

"The message being sent to employees is even if you have a collective agreement - obtained after three years of negotiation and arbitration - we are going to close the store anyway," said Bolduc, also a United Food and Commercial Workers Canada spokesperson.

Fuente:© The Gazette (Montreal) 2008