Metro Inc has reached a tentative agreement with the union representing roughly 550 workers at its produce distribution center in Laval, Quebec, ending a strike that began March 30. The deal includes a 22% salary increase over five and a half years, with a 6% raise retroactive to last September and an additional 4% upon return to work. Workers vote on the agreement September 24.
The strike cost Metro an estimated $64.2 million in lost profits and direct costs in Q3 alone, contributing to an 11.3% drop in adjusted EBITDA for the quarter. The Laval facility supplies more than 350 supermarkets in Quebec, and the disruption forced the company to lean on contingency distribution support from a Toronto facility.
Even with a deal in place, unwinding contingency plans and restoring normal produce distribution could stretch into the next fiscal year. Category managers and buyers sourcing through Quebec retail channels should watch for potential service fluctuations as operations normalize.