Loblaw ending pandemic pay wage premium for frontline workers – 640 Toronto

Loblaw and other major Canadian grocery brands are beginning to cancel their temporary $2-per-hour pandemic pay increases for front-line employees. The largest supermarket chain said in a note to staff this week that stores have “settled into such a good rhythm.”

A Toronto employment lawyer and associate at Samfiru Tumarkin LLP. He joined host Alex Pierson on Global News Radio 640 Toronto to discuss the wage premium, an employee’s rights when a company changes their pay, and options for front-line workers who may soon see their premium pay drop.

Can an employer remove a temporary wage premium or ‘pandemic pay’ from employees in the middle of the COVID-19 pandemic?

Generally speaking, there are no circumstances where an employer is required to provide a raise to an employee.

By providing a $2 incentive to staff during the COVID-19 pandemic, Loblaw (and other Canadian grocery stores) did something for their front-line employees that they legally did not have to do.

It appears that the company also made it clear that the incentive was temporary, for a period of 14 weeks. There was an understanding between employer and employee (and United Food and Commercial Workers Canada, the union representing Loblaw workers) that the change in pay was not a permanent one, and that their pay would return to pre-incentive levels.

Can a company remove a pay raise?

The rules surrounding pay raises are more clear, outside of a temporary situation during a pandemic.

Once a pay increase has been agreed upon by both employee and employer and implemented, it can’t be taken away by the company. A decrease in pay would be considered a change to the terms of employment, which is the framework of a business relationship between a company and a worker. An employee can treat a significant change to the terms of employment as a constructive dismissal. Their employment would be terminated, resulting in full severance pay.

If your employer makes an unwanted change to your job (pay, benefits, hours of work, duties or job title) during or after a pandemic, you should contact our experienced team to find out what your options are.

Other areas covered during this interview:

• Employers must establish rules and protocol for temporary pay increases and incentives
• Loblaw employees receiving bonus pay after wage premium ends
• Options for frontline workers who are not happy with removal of wage premium

Learn more about your rights during the coronavirus pandemic through our Coronavirus (COVID-19) Knowledge Centre, where you can find resources about your employment rights during COVID-19.