News

Sears Contract on the Fritz

Canada's last company appliance repair workers walk picket line.

By Tom Sandborn, 11 Feb 2008, TheTyee.ca

Torn Sears credit card.

Lockout protester.

"Sign the contract now or get out!" That, say unionized appliance repair workers for Sears Canada in Burnaby, was the message they got from company negotiators at the end of last September. Unwilling to sign the management document on a few hours notice and without time to get direction from their members, negotiators for 70 members of International Brotherhood of Electrical Workers Local 213 were served with a lockout notice effective Oct. 1, 2007.

Since then the majority of Sears appliance repair workers have been walking a chilly winter picket line outside the Sears building in a Burnaby industrial park on Underhill Ave. off the Lougheed Highway. Strikers told The Tyee on Feb. 6 they thought that Sears was trying to break their union but they indicated they were willing to stay out on the line until they got an acceptable new contract. The pickets say their union's call for a public boycott against Sears until the company settles has been supported by former Sears' customers and the province's unions.

"Like the old saying goes," grumbled stocky, mustachioed Bill Soltys, pelted by wet snow on a dark afternoon, "we only have to hold out one more day than they do." Soltys, picket captain the day The Tyee dropped by the line, said he had worked for Sears more than 13 years.

Vince Power, Sears Canada's national director of corporate communications, said he had not heard anything about the boycott having much impact on the firm's business, and declined to comment on the union's tactic.

"We respect all our workers," he told The Tyee." We are eager for a conclusion to this dispute."

'Not going back until we win'

"We're the only unionized Sears workers in B.C. and the only company appliance repairmen in Canada," Soltys said. "The contract they tried to force on us in September would have meant we had no guaranteed raises over the term of the agreement, took away our Boxing Day statutory holiday and split our work week so no one could count on two days off in a row. It upped the amount of overtime the company could get from us without paying overtime pay. We're not going back until we win."

Sears spokesman Power, speaking from Toronto, says that Soltys and the rest of the locked out IBEW workers have got it wrong. He claims that most of what was in the company's offer in September simply mirrored current company practice, and did not represent any change in conditions for the appliance technicians. The only innovation in the company proposal, he said, was a change in overtime pay that would allow the company to work technicians an extra half hour a day at straight time rather than overtime rates.

"After all," Power said, "you have to realize that Sears is operating in a very competitive business climate. We're only trying to bring the Burnaby techs into line with practice across the rest of the company."

Raise amount in dispute

One of those practices the unionized techs want to change in their new contract is the way pay raises are determined. At Sears, according to Power, all raises are set by the company after assessing the firm's annual profits and the wages being paid by competitors, not on the basis of a union contract.

He said that the Sears system awarded its appliance techs in Burnaby a four per cent raise. IBEW Local 213 assistant business manager Rav Ghuman told The Tyee that, contrary to Power's claim, the majority of the Burnaby techs only got a 2.49 per cent raise under the company-controlled system, and no raise at all in 2006.

"We are definitely not going to accept a concessionary agreement that represents a step backwards for our members," Ghuman said.

Sears Canada is a publicly traded Canadian company with over 37,000 employees. Its gross revenues typically come to over $6 billion a year. Seventy per cent of the company stock is held by Sears Holdings (the American parent firm) and 30 per cent is in active play on the TSX.

Few Sears workers unionized

The appliance technicians in Burnaby are a minority within the company. Only three per cent of the Sears workforce in Canada is unionized. Asked whether this low percentage of unionized workers reflected an anti-union policy at Sears, Vince Power told The Tyee it was "just the history of the company. We're certainly not anti-union."

According to Power, year-end figures for 2007 are not yet available, but at the end of the third quarter in 2007, just as the Burnaby lockout began, Sears reported gross revenues of $4.03 billion for the preceding nine months, and net earnings of $102.9 million. For the same nine-month period in 2006, he said, revenues were $4.06 billion and earnings $60.6 million.

Power also provided The Tyee with figures for recent full-year earnings for Sears Canada. In 2002, he said, company profits were $138.7 million. In 2003 earnings were $140.9 million; in 2004, $133.1 million; in 2005, $129.9 million, and in 2006, $169.1million.

Coffee, donuts and other support

Sheltering beneath a dripping tarp in the snow, occasionally saluted by horn blasts from passing pickup trucks, Bill Soltys, Phillip Marciniak and Edgar Eng say they have been encouraged by public support during the long winter slog on the picket line.

"The B.C. Federation of Labour had us as guests of honour at their convention," remembered Eng with a quiet smile. "They know we're fighting to keep Sears from gutting our existing contract. They passed a resolution supporting us, and that meant a lot."

"People come by with coffee and donuts and fruit pretty often," said Soltys, "and the support from the IBEW and other unions has been wonderful. Sometimes I get choked up when I think about it."

This draws enthusiastic nods from Eng, a tall quiet Sears veteran about the same age as Soltys. Their companion in the snow, Phillip Marciniak, in his 20s, is a lot younger. This is his first labour struggle, and he seems as determined as the old guys.

"People and their families are getting cheated here," he says. "It's all about more money for the company, and we don't get anything."

Boycott called

The B.C. Federation of Labour has called for a boycott of Sears until a fair settlement is reached. As well, the provincial labour group donated $20,000 to help support the IBEW members during their lockout.

Meanwhile, 12 of the 70 IBEW workers at Sears have gone back to work and are working behind the picket line. The 12 are currently facing disciplinary action from their union local.

As a Tyee reporter drove away from the snowy picket line, another pickup truck blew down Underhill toward Lougheed, slush flying up from its wheels and a supportive horn blaring. A moment later, a non-union 18-wheeler slowed and crossed the picket line into the Sears lot.

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17  Comments:

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  • zalm

    4 years ago

    Dickens still rules

    ...but who'd a thunk it in Canada?

    As appliance prices top $4000 at Sears and profits increase all out of proportion for higher-end appliances, it's hard to remember just five years ago it was almost impossible to find anything at Sears at half that price. People are willing to pay good money, and contribute to the company profits at an obscene rate (margins in the appliance business top 40% on so-called "high end" appliances, ie anything with stainless steel on it, compared to 17% on regular brands) but the company feels the need to cut wages in order to boost quarterly profits.

    Where have we seen this before?

    Coincidentally, at the other appliance service places. At (name withheld so Beers doesn't have to censor me), a large repair firm contracted to by a large BC/Alberta wholesale appliance outfit that builders use, pays its people $25 for the first service call to a warranty appliance repair. They are paid nothing - read my lips - nothing, for each subsequent warranty repair related to the same call (defined as within 30 days).

    So when the Korean manufacturer's fridge I bought had a faulty board which manifested itself as a cold fridge and warmish freezer, it took an hour for the tech to troubleshoot the defrost problem on the board, then went away to order a new one, and then another hour a week later to install the new one. All for which he was paid $25, and provided his own car, gas, insurance and tools.

    This kind of thing is completely against the BC Labour Code, even though the company calls him a "contractor", but the guy'd rather switch than fight. He's attending BCIT at night to get out of appliance repair.

    Similar problem with the high-end stove I bought. Only this time I'd had enough of the injustice of it, and delayed the call-back for a month until the company's computer program decided that this was an entirely new repair, and got a service tech out to properly replace the door springs and mounts which were bent in transit. At least the tech got paid by the hour for this one.

    Stay out boys, until Sears caves. They will, or this society won't be worth living in....

  • zalm

    4 years ago

    Idiot of the Year

    I received a snorting e-mail from a friend who notified me that Fazil Mihlar, the Vancouver EDITED FOR LEGAL CONCERNS-- TYEE MODERATOR has nominated Walmart for a Nobel Prize.

    Same principle - people who are getting stoned out of their wages by powerful companies are supposed to feel grateful, or at least anaesthetized, by being able to buy junk cheaper at Walmart than elsewhere. EDITED FOR LEGAL CONCERNS -- TYEE MODERATOR

  • Frank

    4 years ago

    Sears

    I've been boycotting Sears since I found out about this in November.

  • alive

    4 years ago

    about the editors

    hey Zalm, do not feel bad that the editors deleted your remarks about Wallmart; my post was totally removed and all I wrote about was the need for workers to unionize.

  • Stump

    4 years ago

    Quote:the need for workers

    Quote:
    the need for workers to unionize.

    They sure do. Maybe someone should send CEP around to the Tyee offices? With mill closures left and right we need all the members we can muster. Or is the Mighty Fish already a union shop?

  • NoLeftNutter

    4 years ago

    Extinct?

    Quote:
    "We're the only unionized Sears workers in B.C. and the only company appliance repairmen in Canada," Soltys said.

    That’s no coincidence, just one more small herd of dinosaurs waiting for extinction. Give up boys, you can’t win…..

  • hunter

    4 years ago

    These guys don't stand a

    These guys don't stand a chance. Not unlike the telus workers who had their collective asses handed to them on a platter along with being sold out by their union leadership, it's all about being "more flexible", or being "more competitive." It's really about the new corporate mantra EBITDA. That and keeping the shareholders real happy no matter who gets hurt in the process. It's a race to the bottom.

  • Frank

    4 years ago

    NLN

    Quote:
    That’s no coincidence, just one more small herd of dinosaurs waiting for extinction. Give up boys, you can’t win…..

    Let a US-based company decide what the world will be, not what Canadian workers think it should be. What a sad comment.

  • RickW

    4 years ago

    Unprecedented Prosperity...

    ...according to any number of governments in this country.

    But share the wealth? NEVER!!

  • ME2

    4 years ago

    Query to Mr Beers

    Hey, Mr Beers:

    Since, theoretically at least, under the provisions for free speech, we are allowed to voice our OPINIONS without provoking a libel suit, what would be wrong with prefacing a potentially litiginous statement with the qualifier "In my opinion...."?

    Over my many years of making such statements, the stratagem has served me well.

  • Stump

    4 years ago

    libelicious

    I feel for the Tyee. The laws are bizarre w/r/t independent comment on the Internet.

    I can't imagine Canwest would get sued if I opened a newspaper box and scrawled "G. Campbell Eats Puppy Poo" on the front cover of every Sun in the box... which is a not completely ridiculous example of holding a publisher responsible for other people's comments. Further, nobody sues a building owner when their walls are scrawled with offensive graffiti.

    Having said that, it's a little ironic that on of B.C.'s most experienced media figures (Mr. Mair) is the person giving the Tyee the most legal grief, while the man posting as Grumpy has pretty much called Kevin Falcon an incompetent buttmunch on numerous occasions. I guess it's harder to make a legal case when the poster reveals an unpleasant truth!

  • North of Hope

    4 years ago

    But share the wealth? NEVER!!

    I also hear that the workers at Save-On-Foods may be in for a struggle. In my opinion, it must be the high cost of gas that drives the owners to pressure the workers, after all it takes a lot of gas to run a big yacht.

  • David Beers

    4 years ago

    Administrator

    libel and unions

    thanks for the various questions Stump and ME2. Answers:

    Tyee staff are unionized.

    Putting "in my opinion" in front of a statement doesn't automatically exempt it from libel prosecution, but does help clarify that it is not necessarily presented as reported fact.

  • Stump

    4 years ago

    Quote:Tyee staff are

    Quote:
    Tyee staff are unionized.

    Ah, that explains the high quality of the Tyee. Nothing like a fair wage and a little respect to motivate folks.

    Thanks for the answers Mr. Beers.

  • billybud

    4 years ago

    lockout

    First and formost i would like to thank Mr.Sandborn for the article.Your support and understanding will not be forgotten.As for the noleftnutter,we are not dinosaurs.Our techs,our union local I.B.E.W.#213,the B.C.Fedeation of Labor,the I.B.E.W.Canada wide,the I.B.E.W International,the Canadian Federation of Labor and the whole labor movement is here to stay.You may stand alone and give up so easily but,we do not.We do not tuck our tails and run,we move forward and grow.To hunter,i walk the picketline every day and see strong and proud Telus workers drive by in their service vehicles and private vehicles.They blow their horns,they wave,they cheer,they give us a thumbs up and they stop by to talk,bring us coffee and food while we freeze on the line.I have yet to meet a Telus worker who looks beaten or broken or has had their asses handed to them.You can race to the bottom,we will climb to the top and i will help anyone else who wants to get there.

  • mike c

    4 years ago

    sears lock out

    Locked out tech from Sears Burnaby. Pay raises are done according to company policy, it discriminates on minority employee. example, year PDA were introduce, company had a caucasian and a minority do the training for rest of the techs. That year only the caucasian got a pay raise, nobody else, the minority did not get pay raise. A lady who is doing data entry a minority, training a caucasian lady on data entry. When pay raise came the minority lady got less the caucasian lady she is training. Is this company policy Mr Vince Power? That's why we want structure pay raise, so it would be fair to everyone. We are the employees doing the work bringing in the money. we should get a share of the money made.

  • RickW

    4 years ago

    N of H

    You mean (gasp!) there are no green yachts....!? Whatever is a rich man to do?

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