Wal-Mart Closes Unionised Tyre Centre

Following the closure of a unionised Quebec tyre and lubrication shop, Wal-Mart has said that costs related to the first labour agreement imposed on any of the world’s biggest retailer’s North American locations were to blame. The closure was enacted because the agreement would have raised operating costs by 30 per cent and forced “dramatic” price increases on products, said the retail giant.

Andrew Pelletier told Bloomberg over the telephone that, “The union contract that was imposed is simply unworkable,” and that the agreement would have seen wages rise by a third – more than ten times the average hourly rate of Quebec companies this year. The Canadian president of the United Food and Commercial Workers, Wayne Hanley, responded that, “if you join a union, they’re going to close your shop… It’s hard to see how the additional labour costs were going to drive up the price of a cheap oil change, while at the same time they rake in multi-billion-dollar profits every year.” The company said that the six workers at Wal-Mart Tire and Lube Express, Quebec would be offered jobs elsewhere.