Union alleges Walmart freezing wages of unionized workers

Company 'strongly disagrees' with union claim, citing 'compliance with the law'

Union alleges Walmart freezing wages of unionized workers

Unifor – Canada’s largest union – has accused Walmart of freezing wages to retaliate against employees who recently formed a union.

On Dec. 3, the union filed a complaint with the Canada Industrial Relations Board, citing violations of the Canada Labour Code (CLC).

Punitive wage freezes during union certification processes are prohibited under sections 24(4) and 50(b) of the CLC, noted the union.

Unifor also alleges Walmart:

  • distributed anti-union materials
  • held captive audience meetings to spread misleading information
  • encouraged workers to revoke union membership.

“Exercising your basic rights is not a punishable offence in a democracy,” said Unifor National President Lana Payne. “The spike in unionization at Walmart facilities in Canada is evidence that workers at Walmart are ready to improve their job security, wages, and working conditions.”

Walmart ‘strong disagrees’ with union claim

A Walmart Canada spokesperson told Daily Hive over email that they are aware of the labour practice complaint filed by Unifor against the company.

“We strongly disagree with this claim and are proud of our focus on our associates, including our history of direct communication with our people,” reads the statement, according to the report. “All actions we have taken have been in good faith and in compliance with the law.”

This comes as workers from more and more Walmart locations are looking to join the union, said Unifor. In September, Walmart Canada warehouse workers in Ontario were allowed to unionize, followed by drivers in Surrey, B.C.

Also, the process of negotiating a first contract for the unionized workers in Mississauga and Surrey is underway, said Unifor, which represents 320,000 workers.

Recent wage increases at Walmart

The union also talked about the recent wage increases announced by Walmart as a key ingredient in contract negotiations.

In September, Walmart Canada announced $92 million in pay increases for eligible supply chain hourly and frontline management, and retail hourly associates. That followed a $53-million investment in higher wages for its hourly store associates.

“Walmart’s non-union wage increases simply demonstrate where we ought to begin union wage talks,” said Payne. 

Earlier this year, Walmart Canada announced plans to lay off "several hundred" employees due to changes in some parts of its business. It also introduced material handling robotics and automation technologies in the workplace, saying these will keep “operations bustling” and improve ergonomics for associates.