July 16, 2009
by Purchasingb2b staff
Toronto—Employees at the Zellers disribution centre in Scarborough, Ont. went on strike early this morning. The dispute was caused by “extensive company demands for major wage and benefit concessions,” according to a press release from Canadian Auto Workers.
The demands have sparked outrage among the 325 warehouse workers, said Dwayne Gunness, president of CAW Local 1000.
"Our negotiating committee has worked very hard over the past days to settle this contract without taking strike action," Gunness said.
The company has proposed wage cuts of $8 per hour for material handlers, to increase the use of temporary employment agency workers and to eliminate severage pay language while cutting vacation entitlement, according to Stephen Moses, CAW chairperson at the Zellers warehouse.
"Our members were offered a one per cent wage increase over the course of a three year agreement, which is absolutely unacceptable," Moses said.
The employees’ contract expired at the end of May.