A Food Basics store will replace a Metro grocery store in Ottawa’s South Keys neighborhood this autumn, resulting in the loss of jobs for many employees. Metro Inc. stated that the closure of the store on Wednesday is part of a strategic decision to convert it to a Food Basics outlet in order to better serve the community’s needs.
According to a company spokesperson, the shift to a discount banner aligns with the local market dynamics and customer demands. The news came as a surprise to employees at the Southgate Metro, with Justin Braganza, a long-time meat cutter at the store, expressing shock at the sudden announcement made in May regarding the closure. The reason cited for the closure was financial pressure, including increased rent and concerns about the store’s profitability under the Metro model.
Despite questions about rent costs influencing the decision, Metro emphasized that the change was driven by local market factors and customer preferences. The Southgate Metro employed 72 individuals, who, under the terms of their collective agreement, do not have the option to transfer to other Metro locations. Employees interested in working at the new Food Basics store are encouraged to apply for positions, with priority given to former Southgate Metro employees as part of the collective agreement.
While the union representing the Southgate Metro employees declined an interview, it negotiated enhanced options for its members, including job opportunities at the new Food Basics store and improved severance benefits. Legal experts have raised questions about the transition from Metro to Food Basics and potential challenges regarding layoffs due to a shortage of work. Despite the uncertainties, affected employees like Braganza are grappling with the abrupt changes and uncertain future ahead.