A Food Basics store is set to replace a Metro grocery store in Ottawa’s South Keys area this autumn, resulting in job losses for numerous employees. Metro Inc. stated that the decision to convert the store was made to better cater to the local market demands and enhance customer satisfaction.
The closure announcement came as a surprise to the Southgate Metro employees, including Justin Braganza, a long-time meat cutter at the store. Braganza, who has worked there for over 30 years, mentioned that they were informed about the closure due to financial pressures such as increased rent and insufficient profitability under the Metro model.
Despite inquiries about the impact of rent costs on the closure decision, Metro emphasized that the change was primarily driven by local market conditions and customer preferences. The Southgate Metro employed 72 individuals, and according to their collective agreement, these employees do not have the option to transfer to other Metro locations.
Employees affected by the transition have expressed concerns about their future job prospects, especially since the roles at Food Basics may differ from those at Metro. The United Food and Commercial Workers union negotiated for enhanced options for its members, including severance benefits and job opportunities at the new Food Basics store.
Legal experts have raised questions about the company’s layoff justification under the collective agreement and the potential for union grievances against the perceived shortage of work. While negotiations could lead to confidential settlements, some employees like Braganza feel disempowered and uncertain about their next steps post-closure.