Shares of Loblaw (CSE:L) rose slightly on Friday as Canada’s largest grocer and reached a truce with 1,600 employees at nine stores in southwestern Ontario who went on strike.
The workers, employed by Zehrs, Great Foods and Real Canadian Superstore shops accepted a new collective agreement after going on strike last week in Windsor, Kingsville, Chatham, Leamington and Sarnia.
"In a competitive market, the terms of the contract provide both our colleagues and our company a fair deal and security. Ultimately, it sets the stage for an even stronger relationship," said Loblaw in a statement:
The International Union of United Workers of Food and Trade has indicated that employees have therefore resumed work.
The end of that strike has given Loblaw some breathing room as it has managed to avoid the strike from spreading to 60 additional stores, affecting more than 12,000 workers.
After four days of voting, they have accepted an agreement between the Loblaw management and union representatives late last week.
Loblaw enjoyed higher than expected earnings for the first quarter, beating analysts’ predictions thanks also to a 37.8 percent rise in sales after acquiring the Shoppers/Pharmaprix drug store chain.
Loblaw has also benefited from the general rise in food prices and less competition in recent months thanks to the shutdown of the US based dept. store chain Target.
Loblaw was trading at C$63.56 on Friday in Toronto.