The Liberals and the NDP want to haul grocery store czars in for questioning over alleged wage fixing, says Blacklock’s Reporter..Legislators and the Commissioner of Competition have proposed to outlaw collusion between employers on workers’ pay..“Have them come back and explain their issues over pandemic pay,” New Democrat MP Brian Masse (Windsor West, Ont.) told the Commons industry committee..Masse said he wanted “testimony by the executives” of the nation’s leading grocery chains..“This sector has a history of anti-competitive behaviour resulting in investigations from the Competition Bureau, penalties and requested changes to the Competition Act to bring in more transparency and accountability,” Masse wrote in a separate letter to the committee..Liberal MP Nathaniel Erskine-Smith (Beaches-East York, Ont.) said he agreed grocers should be summoned for a grilling..“If there is an opportunity to revisit that important issue around wage fixing I would certainly welcome the opportunity,” said Erskine-Smith..Loblaw Companies, Sobeys and Metro Inc. on the same day, June 11, 2020, announced the elimination of $2 hourly bonuses for employees who staffed supermarkets amid panic buying in the first months of the pandemic..Sobeys had called it “hero pay” for workers who kept stores open..Executives questioned at 2020 hearings admitted exchanging phone calls on pandemic matters, but denied fixing wages..“We would never do that,” testified Michael Medline, CEO of Sobeys. “Let me be absolutely clear. We did not coordinate our decisions with other retailers.”.“We don’t have regular communication with our competitors,” said Eric La Fleche, CEO of Metro Inc..“You must understand we are very careful that everything we do is within legal boundaries.”.Sarah Davis, then-president of Loblaw Companies, testified she “spoke to our largest union” about the bonus on June 8, 2020, the next day telephoned the CEO of Metro on the matter and on June 11 notified competitors by e-mail..“It was a courtesy to let them know we had made that decision,” said Davis..The 1985 Competition Act forbids collusion “to fix, maintain, increase or control the price for the supply of a product” under threat of $25 million fines and 14 years’ imprisonment..There is no law against wage fixing..“Gaps in our cartel law mean those conspiracy provisions do not protect workers from egregious agreements between competitors that fix employees’ wages and restrict workers’ job mobility,” Commissioner of Competition Matthew Boswell said last October 20 at a Canadian Bar Association videoconference..“I can tell you that in the 10-plus years I have served the public interest in competition matters I have encountered these problematic issues and many others.”.“It’s a new era,” said Boswell. “The pace of change is speeding up as is the urgency to re-examine our laws.”
