Evidence of meeting #28 for Industry, Science and Technology in the 43rd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was employees.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Michael Medline  President and Chief Executive Officer, Empire Company Limited
Sarah Davis  President, Loblaw Companies Limited
Eric La Flèche  President and Chief Executive Officer, Metro inc.

2:40 p.m.

Bloc

Sébastien Lemire Bloc Abitibi—Témiscamingue, QC

Thank you, Madam Chair.

I want to thank the witnesses for joining us. I also want to thank them for emphasizing, in their presentations, the role of their employees.

Like you, I believe that it would have been worthwhile, given the current circumstances, to hear from representatives of Walmart or other major American chains. I want to highlight your transparency, your honesty and your way of presenting your perspective. Perhaps your discussions led to easier decisions. However, I can see that each of you has implemented a very independent decision-making process.

I now want to address the working conditions of employees, particularly the conditions identified on Monday. It was pointed out that, in the 1970s, a job in a grocery store constituted worthy work. A grocery store employee earned enough each year to be able to purchase a house. The Teamsters Canada representative said that 50% of employees represented by the union earn minimum wage. Many grocery store workers therefore have precarious jobs. They are mostly students and part-time workers who have limited or no group insurance and pension plans. In other words, these aren't middle-class jobs.

Many of these front-line workers are working women. In this context, we're not talking about pay equity, and we acknowledge that these jobs are precarious. The COVID-19 pandemic has shown us that these jobs are an essential service. In reference to what my colleague Mr. Erskine-Smith just said, I want to point out that the chief executive officer of Loblaw, Mr. Weston, stated the following:

I continue to be a strong believer in a progressive minimum wage and would support any government-led effort to establish a living wage.

We still need to know what constitutes a living wage. Should this living wage enable a worker to at least buy a home? According to “BILAN-FAIM Québec 2019,” 13.5% of the public earns minimum wage, and people aged 18 to 64 use food banks.

Would you be comfortable knowing that some of your grocery store employees use a food bank in order to eat? I find the irony here a little shocking.

From a legislative standpoint, to provide a better framework for your measures and to ensure equal competitiveness—this expression was used on Monday—would the government need to issue an order in council—this wouldn't be an agreement between you, but a government obligation—to ensure that salaries are increased and that this step is taken?

I'll conclude by saying that Costco initially pays its employees $15 an hour. However, after six years, it can pay them $28 an hour. In the long run, there are benefits to providing a more worthy wage. The whole recruitment process must be very difficult because of the precarious nature of the jobs.

In short, would you be open to the idea of an order in council that would further require companies such as yours to increase the wages of their employees?

I want to hear from the Metro representative first.

2:45 p.m.

President and Chief Executive Officer, Metro inc.

Eric La Flèche

Thank you for your questions, Mr. Lemire.

With regard to the statements made last Monday by the Teamsters Canada representative, I don't know where he obtained this information. We aren't seeing this at all at Metro in terms of statistics. In Quebec, this certainly isn't the case. In our stores, 13% of employees earn minimum wage, not 50%. Obviously, the minimum wage is a subject that goes beyond the context of this discussion. It should be understood that a worthy career is possible in the food industry. First and foremost, at Metro, many of our management colleagues come from the stores. They stayed in the stores and built great careers.

There's a fundamental difference between full-time and part-time work. Full-time workers have pension and insurance plans. They make a good living. They can purchase a house and borrow money to buy a car. In short, they can lead a normal life. On the other hand, depending on the number of hours worked, obviously part-time employees may earn less. These jobs aren't precarious. Instead, they're student jobs, first jobs, transitional jobs and supplementary jobs. We must tell it like it is. Most part-time workers don't plan to pursue a career in the food industry. These jobs are transitional employment for them. Some of our employees have part-time jobs for longer periods, but these employees are far from the majority.

In terms of the order in council, the minimum wage falls under provincial jurisdiction. There are significant differences between the regions of Canada. I think that caution must be exercised in this area. We're in favour of a reasonable and predictable minimum wage and manageable increases that vary according to the cost of living. We've always said this. We're not in favour of sudden and large increases in the minimum wage. We've already seen this in one province. That said, in general, the minimum wage increases over the past few years have exceeded inflation, but they're manageable. We can absorb them without increasing prices for our customers. At the end of the day, we must remain competitive and offer our customers competitive prices.

2:45 p.m.

Bloc

Sébastien Lemire Bloc Abitibi—Témiscamingue, QC

Thank you, Mr. La Flèche.

2:45 p.m.

Liberal

The Chair Liberal Sherry Romanado

Thank you.

We'll now continue with Mr. Masse.

You have six minutes.

2:45 p.m.

NDP

Brian Masse NDP Windsor West, ON

Thank you, Madam Chair.

Thank you to the witnesses for being here today.

I'll start with you, Mr. La Flèche. Is it your normal practice to provide to your competitors “courtesy” emails for management and CEO changes in salaries?

2:45 p.m.

President and Chief Executive Officer, Metro inc.

Eric La Flèche

Absolutely not. We're talking about pandemic premium pay—

2:45 p.m.

NDP

Brian Masse NDP Windsor West, ON

Thank you. That's what I wanted to ask.

Mr. Medline, how about you? Do you trade courtesy emails for changes in salaries of management and CEO compensation?

2:45 p.m.

President and Chief Executive Officer, Empire Company Limited

Michael Medline

No. I don't want our competitors to know what we're doing.

2:45 p.m.

NDP

Brian Masse NDP Windsor West, ON

Ms. Davis.

2:45 p.m.

President, Loblaw Companies Limited

Sarah Davis

No. We would not do that.

2:45 p.m.

NDP

Brian Masse NDP Windsor West, ON

What made sharing courtesy emails about this pay so important this time? It seems odd that you would have a courtesy email going around for the lowest of your earners, but you don't provide a courtesy email for those who are actually receiving the highest compensation in your corporate structures. What made this different?

Maybe Ms. Davis can answer first and we can work our way back.

2:50 p.m.

President, Loblaw Companies Limited

Sarah Davis

For me, the decision had been made. We had been working through this huge pandemic. It was a very unprecedented time that we were working through. As I said, the decision had been made independently and it was—

2:50 p.m.

NDP

Brian Masse NDP Windsor West, ON

That wasn't my question. What was different about sharing that information of raising the salaries? Why did you need that? Why did you really care whether your competitors continued or did not continue with the pay? Why did you feel compelled to share that in any form or context?

2:50 p.m.

President, Loblaw Companies Limited

Sarah Davis

It was public information.

2:50 p.m.

NDP

Brian Masse NDP Windsor West, ON

Okay. It was public information, but you still traded that.

Mr. Medline, why did you feel you had to share that information in a relatively close time frame with your competitors? Why does it matter whether your lowest workers got paid differently from those of your competitors?

2:50 p.m.

President and Chief Executive Officer, Empire Company Limited

Michael Medline

You'd have to ask someone else. I never share it verbally, in writing. I don't share those things. I didn't share the ending of it or the continuing of it—

2:50 p.m.

NDP

Brian Masse NDP Windsor West, ON

I think Mr. La Flèche mentioned that there were courtesy...exchanged. I thought he mentioned you.

Are you in disagreement, then, with Mr. La Flèche?

2:50 p.m.

President and Chief Executive Officer, Empire Company Limited

Michael Medline

Mr. La Flèche and I have a cordial relationship. I have a lot of respect for him as a leader. We talk about things that have nothing to do with the business a lot.

We also talk about “Hey, how are your people?”

2:50 p.m.

NDP

Brian Masse NDP Windsor West, ON

His testimony was not correct, then.

2:50 p.m.

President and Chief Executive Officer, Empire Company Limited

Michael Medline

He may have mentioned hero pay. We never discussed what we pay in hero pay together. We never discussed ending it. I would never indulge in that. By the way, just so you know—

2:50 p.m.

NDP

Brian Masse NDP Windsor West, ON

No. Thank you, Mr. Medline.

2:50 p.m.

President and Chief Executive Officer, Empire Company Limited

Michael Medline

—we were not alone in [Inaudible—Editor].

Thank you for the question.

2:50 p.m.

NDP

Brian Masse NDP Windsor West, ON

Mr. La Flèche, did I get that wrong? I thought you mentioned that you shared courtesy information about the pay with your other competitors. Is that not correct?

2:50 p.m.

President and Chief Executive Officer, Metro inc.

Eric La Flèche

No, I didn't share courtesy information. I was direct. I asked a question about what their intentions were regarding maintaining or ending it. The answer I got was, “The decision is not made yet. We'll let you know if and when we make a decision.”

2:50 p.m.

NDP

Brian Masse NDP Windsor West, ON

Well, why would you even care?