Employees at a Wal-Mart Stores Inc. outlet in Gatineau won an arbitrator-imposed contract on Friday, becoming the giant retailer's only location in North America with a collective agreement in place.
The contract, imposed after binding arbitration ended in June, affects only eight employees at Wal-Mart's tire and lube garage on Maloney Boulevard.
Union reaction
The new contract is worth three dollars more per hour for the workers. Union leaders with the United Food and Commercial Workers Canada fear the decision may see Wal-Mart close the shop's doors.
"People should be entitled to unionize," said Jacques Charron, a former union negotiator. "However, with most employers, you will have some repercussions one way or another."
In 2005, Wal-Mart closed its Jonqui�re, Quebec store only days before an arbitrator was to impose a contract.
Employees torched their uniforms and publicly mocked the company, alleging the world's largest retailer violated Quebec labour laws and the Charter of Rights and Freedoms.
Wal-Mart reaction
An official at the Canadian subsidiary of Arkansas-based Wal-Mart, the world's largest retailer, would not comment on speculation that the company would shut down the unit, saying only that it aimed to maintain an "efficient" operation.
"We need to take time to carefully review and consider the decision that's been rendered by the arbitrator, and its implications for our business. We'll be examining the matter very carefully," said spokesman Andrew Pelletier.
"Our priority is to be able to run an efficient operation in the Gatineau TLE to ensure we can deliver on our commitment to provide customers with the everyday low prices they've come to expect," he said.
Union challenge
The Supreme Court of Canada agreed on Aug. 7 to hear a challenge from former employees at the Jonqui�re store, who charge they unfairly lost their jobs because of their union activism.
It is a case that could become stronger if Wal-Mart chooses the same strategy in Gatineau.
"I think it's difficult for Wal-Mart because this time we have a collective agreement in our end and it's difficult so we go to the Supreme Court with Jonqui�re too," said Charron.
Ironically, the fear of a closure is being fueled by a new, larger Wal-Mart nearby. It has a non-unionized auto shop.
Meanwhile, the union at the Maloney Blvd. shop wants the collective agreement enforced. If the workers do not see higher wages on their paycheques in two weeks, the union said it will file a grievance.
With a report by CTV's Jonathan Rotondo and files from Reuters
