Note To Mr. Weston

Please see my previous post for elaboration on Mr. Weston's dubious practices.

Is He In Hiding?

Given that he is never seen publicly anymore, I am beginning to wonder if Galen Weston Jr,  the president of Loblaw Companies Ltd., is in witness protection. If not, given the extortionate prices he has presided over in recent years, it might not be a bad idea. 

Not content with the record profits his company is accruing, he is helming a couple of more initiatives to squeeze even more money from his operations, while simultaneously inviting even more odium from both taxpayers and the consuming public.

The CBC reports one of theses avenues is via the Loblaw-owned Shoppers Drug Mart chain. Corporate pressure is being exerted to up profit-levels through medication reviews.

Medication reviews are meetings between a pharmacist and a patient to go over their prescriptions and ensure they're taking the right combination of medicines. Anyone who takes at least three medications for a chronic condition, is living in a licensed long-term care home, or is receiving treatment for diabetes is eligible for a medication review in Ontario under the province's MedsCheck program.

"The pressure was extremely intense," said Curtis, a pharmacist and former associate store owner whose franchise agreement was terminated in the last six months. 

"They were essentially monitoring performance records weekly and if you were not hitting your weekly billing numbers, you were requested to come up with business plans and somehow come through with those billing dollars at the end of the day."

Emails to pharmacists belie the denials issued by the company about this practice.

In a December 2023 email to associate owners in Ontario — where Shoppers has most of its stores — a vice president reiterated the company's ongoing plan to "accelerate the care we are providing" through medication reviews before the end of the year. The plan included adopting higher weekly targets (known internally as "run rates") to prepare owners to meet new targets set out for 2024. 

 "Over the next 48 hours, I will be reaching out to you directly to speak with you and understand your commitment to meeting this run rate and providing these services to your patient population, and what your plan is to meet the run rate by the end of this week," the email said.

Associate owners get a cut of the professional services billed by their pharmacies. Records show the company offered an incentive of 10 per cent on top of that cut for a period at the end of 2023 if owners exceeded their target plan. 

Is this a victimless 'crime'? Hardly, because here in Ontario, payment for the reviews would be through OHIP, meaning all taxpayers are on the hook for this abuse.

This February, Shoppers Drug Mart pharmacies across Ontario brought in a collective $1,869,300 in revenue for professional services in a single week, according to internal records. Medication reviews accounted for more than 75 per cent of that revenue — $1,423,900. 

This is not the only measure Loblaw is taking, however, as the following video explains. 

As my wife said, what if you only browse and don't buy anything? How do you get out of the store?

One can only suggest that Mr. Weston look to his own house before applying the label of "criminal suspect" to his customers. 

 

Heroes No More

The more things change, the more they stay the same, eh? Things like corporate greed, for example.

The public was much heartened when grocery store magnates granted pay boosts to front-line line workers as an acknowledgement of the risks they were facing during the ongoing Covid-19 pandemic. However, that corporate 'largess' has now ended.

Despite soaring first-quarter profits ... Loblaw Companies Ltd. president Sarah Davis said stores and distribution centres are experiencing a “new normal,” now that COVID-related safeguards have been in place for several months.

“With this stability and with economies reopening we have decided the time is right to transition out of our temporary pay premium,” Davis said in the note.

The Metro, Sobeys and Walmart chains are following suit in this retrenchment, a retrenchment that seems especially cruel given that Covid-19 is by no means conquered, and an effective treatment continues to elude the world. In other words, those same front-line workers lauded as heroes but a short time ago continue to be at risk as they perform their crucial work.

The Toronto Star expresses its disappointment in people like Galen Weston by reminding us of his words when he enacted the wage premium:

“Supermarkets and pharmacies are performing well ... And the leaders in our business wanted to make sure that a significant portion of that benefit would go straight into the pockets of the incredible people on the front line.”

Loblaw Companies Ltd. saw its first-quarter profits soar to $240 million, compared to $198 million in the same quarter last year. No doubt expenses have increased because of COVID-19 safeguards, but it’s hard to fathom how these stores are no longer benefiting financially, as Loblaw claims.

Star readers also weigh in on this shameful reversal. Herb Alexander of Thornhill writes:

Galen Weston is quoted as saying now “is the right time to end the temporary pay premium we introduced at the beginning of the pandemic.”

I wonder which information source led Weston to this conclusion. I just checked; COVID will be not be ending soon.

So it seems this is not the time to be pulling money out of the pocket of his staff, who continue to make him richer by working on the front lines in his stores.

Weston, said to be the scion of the third-richest family in Canada, is quoted as saying he “would support any government effort to establish a living wage.”

This tells me two things about Galen Weston: First, he concedes that he is currently not paying a living wage. Second, he will only pay a living wage if government forces him to.

And Wesley Turner of St. Catharines, Ont. offers this:

Major grocery chains Metro, Loblaws and Walmart, in the early days of the pandemic, awarded their hard-pressed employees an extra $2 per hour to continue working in what were dangerous conditions.

Their work inevitably exposed them to many possible sources of infection from COVID-19, and workers who had to use public transportation faced even more sources of infection.

They were frequently described as “heroes” for maintaining an essential service, providing food and other necessities to all.

So have they ceased to be “heroes?” Has the danger of catching COVID-19 ended? Are all safe to travel and work in grocery stores?

It would seem so in the eyes of their employers who can now lower labour costs and gain more profits. It looks like this increase in wages was no more than a gesture, motivated not by generosity, but by fear that employees would not come to work at the risk of their lives.

That danger remains and so should the wage increase. Indeed, a permanent wage increase would show that those companies really do value their “heroic” employees.

The response to the Covid-19 pandemic has offered many moments when the best of human nature has shone forth. However, the actions of Galen Weston and his fellow-travellers are also a stark reminder that only rarely do the better angels of our nature prevail in the corporate world.

A Rare Moment of Praise For The U.S.

Despite being deeply cynical about Amercian poltics in general, and Barack Obama in particular, a rare opportunity to praise both has just arisen. Although relatively modest in scope, in response to the terriblly unsafe working conditions in Bangladesh that have cost so many workers their lives and maimed countless others, the U.S government has moved to suspend Bangladesh’s special trading privileges to force that country to improve the situation.

Although the greatest source of these dangerous conditions is the clothing industry, it will, unfortunately, be only minimally affected by the suspension, for reasons explained here. Nonetheless, it is hoped the move will put pressure on both Canada and the EU to take appropriate measures to further 'encourage' the Bangladeshi government to clean up its act:

Since the April disaster, Canadian labour activists have tried to convince Ottawa to use its tariff program to force Bangladesh to improve safety and establish workers’ rights.

The pressure is now on Canada, said Hassan Yussuff, secretary-treasurer of the Canadian Labour Congress.

“I applaud the U.S. decision. I hope Canada and the EU follow,” Yussuff said from Ottawa.

Alas, such a hope, at least as it applies to Canada, appears to be a forlorn one. It would seen that Mr. Harper and his corporate handlers have never met a situation of desperate workers it has not tried to exploit, hence its fond embrace of the Temporary Foreign Worker Program, its changes to E.I., its efforts to weaken unions domestically, etc. etc.


A finance ministry official told the Star that Canada is “concerned about working conditions in the global ready-made garment sector” and supports efforts to improve standards.

BUT

It does not appear Ottawa has any plans to follow the American lead, calling the move largely “symbolic” as it doesn’t apply to the garment industry.


No doubt Corporate Canada and Mr. Harper (separated at birth?) will soon unleash a torrent of rhetoric about constructive engagement through trade to improve the conditions of workers abroad. No doubt Galen Weston will continue with his sanctimonious rhetoric. And no doubt countless lives will continue to be lost in Bangladesh and elsewhere if no one else picks up where the Amertican example leaves off.