A10 - The Terrace Standard, Wednesday, June 12, 1996

‘SAFEWAY

Canada Safeway Limited *

| June 5, 1996

AN OPEN LETTER TO SAFEWAY EMPLOYEES:

We regret that our stores are closed and you are on the picket line. It would have been our preference
that the stores remained open until you had an opportunity to vote. Your Union, for whatever reason,
decided otherwise. |

WHAT IS THIS DISPUTE ABOUT?

It is about the U.F.C.W. signing agreements with some of our competitors which gives them
significantly lower costs compared to what the Union has negotiated with us.

With these substandard U.F.C.W. agreements intact, these competitors continue to expand and
threaten your jobs and our future.

What we-have proposed is an Agreement which is designed to lower our. costs over time and does
not allow a further widening of the labour cost disparity which now exists. _

We did not create this disparity, nor did you — but it is the single biggest threat to our future and
your jobs.

@ THERE ARE NO CONCESSIONS FOR CURRENT EMPLOYEES. WE HAVE
WITHDRAWN ALL WAGE AND BENEFIT ROLLBACKS.

- THIS OF FER ALLOWS CURRENT EMPLOYEES TO KEEP WHAT THEY HAVE
NOW, WHICH IS ONE OF THE RICHEST CONTRACTS IN CANADA.

@ OUR OFFER CONTAINS A COMPLETELY VOLUNTARY BUYOUT WHICH
_ ALLOWS US TO HIRE NEW EMPLOYEES AT LOWER RATES, SIMILAR TO
THE AGREEMENT YOUR UNION HAS WITH OTHER COMPETITORS.
THESE NEW EMPLOYEES WILL ONLY REPLACE HOURS WORKED BY
EMPLOYEES WHO TAKE THE BUYOUT

@ AFTER THE BUYOUT, AS SALES INCREASE OR AS EMPLOYEES LEAVE,
THESE HOURS WILL BE AVAILABLE TO YOU.

® THIS IS NOTA CASE OF GREED OR MISTREATING OUR EMPLOYEES. WE
ARE LOOKING TO PROTECT OUR SALES AND OUR LONG TERM
VIABILITY IN THE B.C. MARKETPLACE.

| l urge you to think carefully about your vote on our Offer. It affects all of our futures.

This is an extremely serious matter which should be decided by ALE employees. Please take the time
to vote. |

Grant Hansen
President & Chief Operating Officer
Canada Safeway Limited