Loblaw to bring back Heritage banner

Loblaw is selling a dozen of its 110 Maxi discount supermarkets in Quebec in a move that has raised the ire of the union representing workers there.

The stores will be rebranded as Heritage, a banner discontinued almost 20 years ago, and will be parceled off to new owners that Loblaw described as "affiliates."

In 1995, 42 Heritage supermarkets were converted to Maxi stores by the owner, Provigo. Loblaw bought Provigo three years later.

“Loblaw Companies Limited has recently announced that it has created a new business model for affiliates for 12 of its Maxi stores situated mainly in the Saguenay region of Québec as well as elsewhere in the province,” Anita Jarjour, spokesperson for Loblaw, said in an email.

“Within the coming 90 days, the company will proceed with the sale of these stores to affiliate owners under a new contemporary Heritage banner," she added.

Jarjour wrote that the company is moving forward with prospective buyers and expects to announce within the next three to four weeks how it will proceed. Loblaw would not say how it is finding new ownership for its stores.

Serge Fournier, president of the CSN Union that represents workers at all 12 stores, said his members were caught off guard by the announcement.

“They never told the union,” said Fournier. “They didn’t meet us, they didn’t communicate with us…We don’t have any information. It’s bizarre. It’s a flagrant lack of respect.”

The CSN represents about 600 workers at the stores being sold.

Several sources in the Quebec grocery industry interviewed by Canadian Grocer said that relations between Loblaw and the CSN have not been good and this could be one reason the Maxi stores are being sold to affiliates.

“I think the union issue is very real and wouldn’t be surprised if that had been the straw that broke the camel's back.” said one industry observer who asked that his name not be used.

It's not clear how the new Heritage stores will deal with the CSN contracts, all up for renewal this year between June and December, said the CSN’s Fournier.

One industry executive suggested the new Heritage storeowners would have to negotiate each store’s contract separately.

Meanwhile, the CSN's Fournier noted that employees at three Loblaw stores in the Abitibi-Temiskaming region have been on strike or locked out since 2012 and that no talks are scheduled.