CanadaB次元官网网址檚 competition laws should be changed to prohibit cartel-like practices and wage-fixing deals in the countryB次元官网网址檚 grocery sector, a new report by the House of Commons industry committee presented in the lower chamber on Wednesday said.
The report comes a year after CanadaB次元官网网址檚 big three grocers B次元官网网址� Loblaw Companies Ltd., Metro Inc. and Sobeys parent company Empire Company Ltd. B次元官网网址� all cut temporary pandemic-related pay bonuses within a day of each other last June.
The move prompted the committee to hold hearings on the issue and invite senior grocery executives to explain their decisions.
While the food retailers admitted to communicating with each other about ending their respective wage premiums of about $2 an hour, they denied co-ordinating the termination of the pay bumps.
Metro president and CEO Eric La Fl猫che said he reached out to his counterparts at Loblaw and Sobeys to gather information B次元官网网址� not to obtain a tacit agreement on wages.
B次元官网网址淭he more information I have on what others are doing, how they are treating their employees and how much they are paying and for how long, is valid information that I tried to get,B次元官网网址� he told the committee last July.
But competing grocers communicating about wages at the executive level risks B次元官网网址渁 slippery slope towards cartel-like conduct,B次元官网网址� Matthew Boswell, commissioner of competition at the Competition Bureau, testified during the committeeB次元官网网址檚 hearings.
Yet the bureau lacks the power under the Competition Act to prosecute such behaviour and faces significant resource constraints, he said.
CanadaB次元官网网址檚 competition legislation diverges from laws in the United States, where federal competition authorities can criminally prosecute wage-fixing agreements, Boswell told the committee.
The bi-partisan committee recommended Ottawa align Canadian competition legislation with American legislation in order to criminally prosecute such agreements.
B次元官网网址淒oing so would clarify competition-related obligations for businesses active in Canadian and American markets, and facilitate co-operation between competition authorities in Canada and the U.S.,B次元官网网址� the report said.
B次元官网网址擳he Canadian Press
