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ARTICLE · 04 DECEMBER 2014

Wal-Mart Could Not Thaw The "Statutory Freeze" By Closing Its Store

Where a retail store is performing very well, with objectives being met to such an extent that bonuses are being promised to employees, would a reasonable employer close that store?

CanadaEmployment and HR

Where a retail store is performing very well, with objectives being met to such an extent that bonuses are being promised to employees, would a reasonable employer close that store?  The Supreme Court of Canada determined in the U.F.C.W., Local 503 v. Wal-Mart Canada Corporation decision released on June 27, 2014 that the answer is no when the closure occurs while a collective agreement is being negotiated.   

This grievance, along with several others based on different arguments by the United Food and Commercial Workers Union ("UFCW"), was brought against Wal-Mart after it closed its Jonquiere, Quebec store on April 29, 2005.  The UFCW was certified as the bargaining agent for the store in 2004. This was the first Wal-Mart store in North America to complete the certification process and become unionized. The parties were unable to reach a collective agreement and the UFCW applied on February 2, 2005 to the Minister of Labour to appoint an arbitrator to settle the

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