MONTREAL (AP) -- A Quebec arbitrator imposed a labor contract Friday at a unionized Wal-Mart outlet there, marking the first such deal involving the retail giant in North America.
While other Wal-Mart stores have been unionized, a group that is critical of the company's labor policies called it a "landmark" collective agreement.
Wal-Mart Watch director David Nassar issued a statement Friday congratulating the local United Food and Commercial Workers Canada union and workers at Wal-Mart's Gatineau, Que. tire and lube operation, saying it was "the first Wal-Mart location in North America with a collective agreement in place."
Wal-Mart Quebec spokesman Yanick Deschenes would not immediately comment on the details of the arbitrator's 43-page decision.
"At first glance, this will have a significant impact on our business model, which is to offer the best prices to our clientele," Deschenes said.
In his decision, arbitrator Alain Corriveau wrote: "The employer does not want to modify his business model.
This is likely the reason why negotiations stalled and why the parties could not reach a deal at the end of the first labor agreement."
Corriveau wrote that except for salaries, the nine automobile technicians at the Gatineau store had already agreed on most elements in the collective agreement.
The outlet, near Ottawa, has 250 employees.
The arbitrator also ruled the salary scale proposed by the union was "reasonable, realistic and fair."
Meanwhile, Guy Chenier, president of the union representing the Wal-Mart workers, said the three-year contract immediately brings their salaries up to 11.54 Canadian dollars an hour ($10.88) from 9.25 Canadian dollars.
It calls for them to make 15.94 Canadian dollars an hour in 2010.
? 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
While other Wal-Mart stores have been unionized, a group that is critical of the company's labor policies called it a "landmark" collective agreement.
Wal-Mart Watch director David Nassar issued a statement Friday congratulating the local United Food and Commercial Workers Canada union and workers at Wal-Mart's Gatineau, Que. tire and lube operation, saying it was "the first Wal-Mart location in North America with a collective agreement in place."
Wal-Mart Quebec spokesman Yanick Deschenes would not immediately comment on the details of the arbitrator's 43-page decision.
"At first glance, this will have a significant impact on our business model, which is to offer the best prices to our clientele," Deschenes said.
In his decision, arbitrator Alain Corriveau wrote: "The employer does not want to modify his business model.
This is likely the reason why negotiations stalled and why the parties could not reach a deal at the end of the first labor agreement."
Corriveau wrote that except for salaries, the nine automobile technicians at the Gatineau store had already agreed on most elements in the collective agreement.
The outlet, near Ottawa, has 250 employees.
The arbitrator also ruled the salary scale proposed by the union was "reasonable, realistic and fair."
Meanwhile, Guy Chenier, president of the union representing the Wal-Mart workers, said the three-year contract immediately brings their salaries up to 11.54 Canadian dollars an hour ($10.88) from 9.25 Canadian dollars.
It calls for them to make 15.94 Canadian dollars an hour in 2010.
? 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
