The United Food and Commercial Workers (CFCW) union is seeking a strike mandate after conciliation talks with more than 100 Loblaw-owned stores in Ontario broke down.

It is understood that the major barrier to a settlement is Loblaw’s demand for wage and benefit cuts at the conventional Loblaws and Zehrs stores and concessions at the large format Real Canadian Superstores and Great Food stores.

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A spokesperson for the union told just-food yesterday (23 June): “On June 18 the company informed the union it would not move from its demands for wage and benefit concessions. The bargaining committees of all four UFCW Canada Local unions were unanimous in rejecting this position as unacceptable.

“As such, the conciliation talks aimed at reaching a new labour agreement covering nearly 30,000 members of UFCW Canada …broke off with no progress towards a settlement.”

Further conciliation talks scheduled for the week of 5 July have been cancelled, the union said, adding that it is requesting a “no-board” report from the Minister and will be conducting strike votes around the province beginning the same week.

Talks are expected to resume the week of 19 July with a mediator from the Ministry of Labour, CFCW said.

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Julija Hunter, vice president of public relations for Loblaw said it is “hopeful” that the union will continue to negotiate.

“We are striving to reach an agreement that would enable the company to continue to meet the demands of today’s highly competitive retail landscape. In many contracts we pay 10% more than competitors and have 15% less flexibility. That’s a real competitive disadvantage. That’s not sustainable,” Hunter said.

He added that in Ontario, 2011 will be a “watershed year” for the industry with more non-unionised labour than unionised labour for the first time, based on footage added.

“Our desire is for an outcome that will allow us to continue to service our loyal customers, while ensuring a sustainable business model in which we can support our employees,” Hunter said.