Safeway Talks, September 19, 2026

Safeway Makes Final Offer

We’re encouraged to share that we have reached the end of the negotiations with UFCW 401 and the Company has made its Final Offer. We are pleased to hear that the Union will be bringing this offer to you for a vote. This final and best offer reflects the productive and collaborative talks between UFCW 401, your Bargaining Committee and the Company. It includes meaningful improvements for teammates, including job security, wage increases and benefit enhancements.

As UFCW 401 has now shared the agreement with you, it is important that you take time to review the details, ask questions and vote.

If accepted, here’s what the Company’s Final Offer delivers:

Five years of job security for Safeway teammates

• Teammates can feel secure with a five-year agreement that expires in August 2030
• Teammates can also be assured by the Company’s commitment to no FreshCo conversions of Safeway stores during this time.
• If a store closes, we have agreed to an enhanced notice period, enhanced severance and a commitment to meet with the Union.

Wage increases will be maintained

• All appeals, including the challenge to the Supreme Court of Canada related to the wage reopener, would be withdrawn by the Company and no further action will be taken on that matter. This means that top-rated teammates will continue to be the highest paid employees in the unionized Alberta grocery industry.

Signing bonus and wage increases

Top-rated teammates:

• $2,000 signing bonus to be paid within 30 days of ratification
• Wage increases for top-rated teammates in 2027 (2%), 2028 (3%) and 2029 (3%).
• For a teammate making $23.38 now, this works out to $1.92 of increases between now and August 2029 and a rate by the end of the contract of $25.30.
• When factoring in the 5% increases from 2023 and 2024, it amounts to an increase of 18% for that period

In-Scale teammates:

• $500 signing bonus for in-scale teammates to be paid within 30 days of ratification.
• An immediate 3% off-scale increase for in-scale teammates. For a teammate making $15 per hour this would equal to a 45-cent increase.
• Additional lump sum payments of $500 in 2027, 2028 and 2029.
• This is a 3% increase and $2,000 in signing and lump sum payments between now and 2029.

Access to more hours and skills

• Teammates have been asking for more variety in their work and we’re offering new opportunities to support that interest. Teammates can now choose to be cross trained in other departments, giving them the opportunity to work different areas in the store and have access to more hours. Participation is entirely voluntary and opportunities will be based on seniority.

Improved investment in benefit plan and workplace support

• Increased funding for Dental trust benefits ensuring the long-term viability of the benefits provided by this fund.
• Additional funding as required for the Part-Time Health and Welfare trust to ensure the benefits provided by this trust remain funded.

• Free menstrual products will be made available in all employee washrooms over the next six months.

• 60 employees per year (as selected by the Union) to receive paid time off to attend to National Day for Truth and Reconciliation Union activities.

• Ongoing funding of the Walking Steward program.

Retirement allowances

• We’ve heard from many teammates who are considering retirement that some additional support might make their transition easier. We are offering retirement allowances for eligible teammates based on years of service and awarded by seniority. Eligible teammates would receive an allowance of $1,000 per year of service to a maximum of $25,000 upon retirement. This option will be available to at least 200 retiring teammates over the life of the new agreement.

We firmly believe that this Final Offer represents a fair balance that delivers tremendous value for teammates and supports the future of Safeway in Alberta. It provides more job security, improved compensation and enhanced benefits. This is the Company’s best and final offer. There are no more bargaining dates and there will not be another offer. We strongly encourage you to vote to accept it.

It is important that you take the time to carefully review the offer and cast your vote. Direct any questions about where or how to vote to your Union representative. For scheduling matters that may affect your ability to vote, speak with your Store Manager or your Human Resources Business Partner.

We’ll provide you with an update once the results have been confirmed. We look forward to you ratifying the offer so we can move forward with improvements that have been offered and focus on continuing to build a strong future for Safeway!