Employees at a Metro grocery store in Ottawa’s South Keys area are facing job losses as the store will be transformed into a Food Basics outlet this autumn.

Metro Inc. confirmed the closure of the store on Wednesday, citing the decision to convert it to a Food Basics store to better align with the local market and customer demands.

In a statement to CBC, a company spokesperson mentioned that they regularly evaluate their store network considering various factors such as local conditions and store performance. The shift to a discount banner was deemed appropriate based on the prevailing market trends.

Despite Metro’s rationale, the news came as a surprise to employees at the Southgate location, including Justin Braganza, a meat cutter with over three decades of service. He revealed that they were informed of the closure in May due to financial pressures, including increased rent and concerns over profitability.

While Metro emphasized that the decision was driven by market dynamics and consumer preferences, the move left 72 Southgate Metro staff without the option to transfer to other Metro establishments under the terms of their collective agreement.

Employee Transition and Concerns

Under the collective agreement for the new Food Basics store, a minimum of 10 part-time and five full-time former Southgate Metro employees who apply to work at the new location will be considered for hiring. The spokesperson clarified that seniority from their Metro tenure would influence their remuneration within the Food Basics structure.

However, Braganza expressed unease about his prospects, noting the inapplicability of his meat cutting skills at Food Basics and the uncertainties faced by colleagues, including those reliant on work permits for their stay in Canada.

Additionally, some Metro customers expressed disappointment, highlighting concerns about the treatment of long-serving employees amid corporate transitions.

Union Support and Legal Perspectives

The United Food and Commercial Workers union negotiated improved options, including job placements and enhanced severance, for affected members transitioning to the new Food Basics store. Legal experts highlighted the potential for grievances over work shortage claims and anti-union actions, which could lead to prolonged disputes and litigation.

While settlements between unions and employers could resolve such conflicts, confidentiality agreements often accompany these arrangements, limiting public disclosure of the terms.

Braganza lamented the situation, emphasizing the vulnerability of workers in such scenarios and the emotional toll of parting ways with colleagues and customers, likening it to a disbanding family.