Wal-Mart Canada store signs contract with workers

16 August 2008

Mumbai: A Wal-Mart Stores Inc outlet in Canada has signed a contract with its workers – making it the retailer's only outlet in North America to sign a collective agreement with workers – following the award imposed by an arbitrator.

The agreement, however, affects only eight employees at the retailer giant's tyre and lube garage at the Gatineau store across the river in Ottawa, Quebec.

The contract, imposed by a Quebec government arbitrator, is for three years and provides the eight employees with an improved wage scale, annual hikes and a mechanism for dispute settlement.

The Canadian subsidiary of Wal-Mart signed the contract to avert a shut-down of the small unit and maintain efficiency of operation.

Wal-Mart earlier had to close a store in Jonquiere, Quebec, perhaps the first in North America to obtain union certification, in 2005.

Last week the Supreme Court of Canada had agreed to hear a challenge from former employees at the Jonquiere store, who charge they unfairly lost their jobs because of their union activism.