Earlier this month, Local 401 of the United Food and Commercial Workers posted an update on their website regarding contract negotiations for warehouse workers.
These 300 or so workers are employed by McKesson Canada at their two warehouses in Edmonton, where they help supply pharmaceuticals, toiletries, health and beauty products, makeup, sundries (including diapers and paper products), candy, and stationery to various retail outlets.
Based out of Québec, McKesson Canada provides a wide variety of healthcare services throughout the country, including being the country’s largest pharmaceutical distributor.
The most recent collective agreement for these workers expired at the end of last year.
Unfortunately, McKesson did not meet with the workers’ bargaining team to start negotiating the new contract until well into 2026, and monetary discussions began only in June.
When the two parties met to negotiate at the end of last month, McKesson tabled what they called their last best offer.
This offer included wage increases in every year of a 5-year contract.
| 1 January 2026 | 3.00% |
| 1 January 2027 | 2.00% |
| 1 January 2028 | 2.00% |
| 1 January 2029 | 3.00% |
| 1 January 2030 | 3.00% |
| 13.00% |
This is less than the 15% they got in their last contract. Because that contract was longer and the increase was larger, the annual average increase was significantly higher: 4.29% compared to 2.60%.
Workers made it clear in consultations with their bargaining committee that they wanted a shorter contract to mitigate the possibility of real wage loss in the event of unexpected economic turmoil, which certainly seems likely in the current global political climate.
And a new contract that is a year and a half longer than the old one is definitely not a shorter contract.
Here are a few other things that McKesson agreed to in an effort to convince workers to take a longer contract.
- Increase meal allowance from $12 to $15
- New 50¢ hourly premium for workers in refrigerated areas
- Increase boot allowance from $240 every 2 years to $300
- Increase dental care contribution from 46¢ an hour to 48¢ an hour
- Increase contribution to UFCW’s education and training fund by 1¢ an hour every year starting in 2028
- Two increases to shift premiums:
| Shift | Current | 2026 | 2029 |
|---|---|---|---|
| noon–18:00 | $1.50 | $1.60 | $1.70 |
| 18:00–06:00 | $2.25 | $2.35 | $2.45 |
They also agreed to change sick leave from 40 hours per year for full-time (non-probationary) workers to a matrix that benefits long-term workers more.
| Length of service | Current | Proposed |
|---|---|---|
| <1 year | 40 hours | 4 hours per month of service |
| 1–10 years | 40 hours | 56 hours |
| 10–20 years | 40 hours | 64 hours |
| 20 years+ | 40 hours | 72 hours |
Finally, they are willing to add legal wards and step-siblings to the definition of immediate family for the purposes of bereavement leave.
Workers voted in person on the 13th and 14th of this month. This was followed by online voting on the 14th and 15th.
According to the the update published a couple of weeks ago, 82% of eligible workers participated in the ratification vote. Of those, 95% chose to reject the employer’s offer.
The next step for the bargaining team is to take these results back to McKesson to see if the employer is willing to move on some of their proposals, even though this was supposed to be their last and best offer.
