Sobeys' Anti-Worker "Project Sunrise"Even before the pandemic, Sobeys was making record profits as it has continued its anti-worker offensive named "Project Sunrise." Reporting on fourth quarter earnings on June 18, Sobeys reported earnings per share were up from $0.45 to $0.66, and annual dividends up 8.3 per cent, with Project Sunrise exceeding its targets for 2020. Sobeys parent company, Empire Company Limited, announced an increase of 43.2 per cent in adjusted net earnings (profits) from $126.5 million to $181.2 million for the fourth quarter ended May 2, 2020. In the same period store sales increased by 18 per cent.
Medline speaks about the "team," suggesting that success of the rich in growing their empires and amassing ever greater fortunes means success for all. But the reality is revealed as he boasts about the company's "cost cutting" measures, which have included the loss of hundreds of jobs and the conversion of Safeway stores into FreshCos, with significant concessions imposed on the workers. "This is one of our proudest quarters in Empire's 113 year history," said Michael Medline, President and CEO, Empire. "Our 127,000 teammates across the country gave their all to keep our customers safe and healthy and our grocery shelves stocked during the unprecedented coronavirus pandemic. Due to their herculean efforts, our Company saw significant market share increases. Our team has also surpassed our Project Sunrise turnaround targets. This three-year transformation is one of the most significant turnarounds in Canadian retail history." Precarious work, casualization and involuntary part-time work, with lack of rights such as paid sick leave, health benefits, and security in retirement are the consequences of the "success" of the filthy rich who control the wholesale and retail food trade, their greed, empire building and ruthless competition. The Weston family, for example has a net worth of $8 billion, the Walton family who control Walmart a net worth over $US190 billion. Costco had an annual revenue of $152 billion in 2019. The pandemic has shown even more starkly that the prosperity of narrow private interests does not lead to the prosperity of all, and the necessity for the workers and people to take control of the decisions which affect them and their society. A new direction for the economy is needed to provide food security for Canadians and uphold the rights of workers who produce, process and distribute food.
This article was published in Article Link:   Website: www.cpcml.ca Email: editor@cpcml.ca |
Company
President Michael Medline says the company "still has a long way to go"
in its "cost-cutting" plan. Empire is planning
to expand in Ontario where it has recently acquired the Farm Boy
stores. Empire already has 100 FreshCo stores across Canada,
and expanding its "discount" FreshCo banner in western
Canada by converting Safeway stores is a key part of this operation.