Federated Co-operatives Limited (FCL) has reached an agreement with employees who were on strike at two Calgary distribution centres.
The company announced the new four-year agreement with more than 330 Home and Building Solutions Distribution Centre and Food Distribution Centre employees, represented by Teamsters Local 987, on January 9.
The agreement includes the introduction of a second-tier wage scale for new employees at both distribution centres. Feederated Co-op says this wage scale is “key to sustaining FCL's operations and ability to serve retail co-operatives across Western Canada over the long-term.”
Employees will receive a six per cent wage increase over four years, with retroactive pay for work completed back to April 1, 2018. The new agreement also provides enhancements to benefits for all existing and future employees.
Co-op and its employees have been in negotiations since the last collective agreement expired on March 31, 2018.
As reported in Grocery Business previously, the two-tier wage structure has proved to be a major sticking point in negotiations between Saskatoon Co-op and UFCW Local 1400 employees who are continuing their strike action.