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.
2:30 p.m.
Conservative
Michelle Rempel Conservative Calgary Nose Hill, AB
Okay.
You also said that the reason for the increase in wages was that you were proud of your employees. Was that a correct characterization of your statement?
2:30 p.m.
President, Loblaw Companies Limited
Yes, absolutely proud, and also for the extenuating situations they were working in....
2:30 p.m.
Conservative
Michelle Rempel Conservative Calgary Nose Hill, AB
Was the decrease in their wages because you are less proud of them now?
2:30 p.m.
President, Loblaw Companies Limited
The wages were not decreased. We just went back to where they were before. As I've highlighted, it was a temporary premium and they understood that.
2:30 p.m.
Conservative
Michelle Rempel Conservative Calgary Nose Hill, AB
So...temporary pride, then, perhaps.
I'm just wondering. You also said in your testimony that you are not putting profit ahead of your employees. If that's the case, and you've seen net earnings increase in Q1, then why decrease the temporary wage increase while we're still in a pandemic?
2:30 p.m.
President, Loblaw Companies Limited
As I highlighted, our Q2 earnings will not be positively impacted by COVID-19.
2:30 p.m.
Conservative
Michelle Rempel Conservative Calgary Nose Hill, AB
I'm just saying, if you're not putting profit.... I mean, you did have a significant increase in Q1. I'm just trying to get a sense. We had the representatives from the employee unions here, and they suggested that we're still in a pandemic so there should be no reason the temporary bump would be decreased.
Maybe I'll ask it a different way. Do you feel that your employees are significantly safer in your stores? Do they have a much decreased risk of contracting COVID-19 now than they did earlier in the year?
2:30 p.m.
President, Loblaw Companies Limited
I think what I said was that the two-dollar premium was never about safety. Paying people more money doesn't make them safer.
2:30 p.m.
Conservative
2:30 p.m.
President, Loblaw Companies Limited
It's the dollars that we spent on protocols, as I highlighted, on safety screens and on the social distancing in our stores that make our employees safer. That continues, and the cost associated with that continues as well.
2:30 p.m.
Conservative
Michelle Rempel Conservative Calgary Nose Hill, AB
I wish you guys would just say that this is about shareholder returns, because, clearly, that decrease is going to go somewhere. I kind of think we're beating around the bush here a little bit.
Would you say that it was perhaps fair to characterize the wage increase as being attributable to concerns around nutrition or people trying not to work as opposed to anything else?
2:30 p.m.
President, Loblaw Companies Limited
As I explained, the two dollars, in my mind, was a thank you and an appreciation for those who did choose to come to work every day and, of course, there were people who had vulnerabilities who could not come to work during that time. Of course, the huge volumes meant that we had to hire a lot more. I think I highlighted that we hired 20,000 people during that period.
2:30 p.m.
Conservative
Michelle Rempel Conservative Calgary Nose Hill, AB
Would you have taken a shift on the floor of one of your stores in March at the current rate of compensation for a front-line grocery store worker?
2:30 p.m.
President, Loblaw Companies Limited
I'm in a different place in my career. I certainly started as a minimum-wage employee. My daughters have all worked—
2:30 p.m.
Conservative
2:30 p.m.
President, Loblaw Companies Limited
I would have. I think our stores were absolutely safe.
2:30 p.m.
Conservative
Michelle Rempel Conservative Calgary Nose Hill, AB
I'll just close with this, because I have to.
Did you guys really have to take $12 million for freezers from the federal government?
2:30 p.m.
President, Loblaw Companies Limited
If the question is about that, we were part of a process and we bid online just like everybody else. It was not for refrigerators. It was to exchange the gases used in the refrigerators, which has an impact on the economy, not on the business...not on the economy, on the environment, not on the business.
2:35 p.m.
Liberal
The Chair Liberal Sherry Romanado
Thank you very much.
We'll now move to MP Erskine-Smith. You have the floor for six minutes.
2:35 p.m.
Liberal
Nathaniel Erskine-Smith Liberal Beaches—East York, ON
Thanks very much.
While Mr. Weston couldn't be here today, unfortunately, I want to read some of his words to start:
I continue to be a strong believer in a progressive minimum wage and would support any government-led effort to establish a living wage.
I'll go around to the three of you. Yes or no, do you agree with that statement?
I'll start with Ms. Davis.