MONTREAL — Metro Inc. says the ongoing strike at its Laval, Que., fresh produce distribution centre is weighing on its third-quarter sales.
The grocer said its adjusted earnings per share is estimated to be between $1.22 and $1.27 for its third quarter, compared with $1.52 in the same quarter a year ago.
Metro said its food same-store sales for the first 14 weeks of its 16-week third quarter were down 1.5 per cent, compared to the corresponding weeks last year.
The company has been incurring incremental costs from its contingency plan to keep fresh produce on store shelves as the strike drags on.
Metro said in a news release Thursday that it implemented the contingency plan as soon as the strike began on March 30, and after a ramp-up period, it is enabling “consistent and reliable store replenishment.”
The company will report its third-quarter earnings Aug. 12.
Metro said the union rejected its latest offer presented earlier this month, which it said included “significant increases, particularly in the first 12 months of the collective agreement” for wages and working conditions, and that the offer was comparable to similar roles in the market.
The union came back with a counteroffer Thursday, which the grocer said it could not agree to.
“We are very disappointed that the union came back with an offer that in no way reflects the broader labour market or the competitive reality of our industry, especially after a 13-week strike,” Marc Giroux, Metro’s chief operating officer, said in the news release.
He said the company invites the union to “work constructively” toward a settlement that will bring an end to the strike.
The union, in a statement late Thursday, called the company’s rejection of the offer deplorable and accused it of “turning a deaf ear” to worker concerns.
“We know Metro has the means to meet our financial demands,” said union president Matthieu Lafontaine in the statement.
“By acting this way, (CEO Éric LaFlèche) bears sole responsibility for this protracted dispute.”
Metro’s Laval distribution centre employs 550 unionized workers and provides fresh produce to about 300 stores in Quebec.
