By Ketki Saxena
Investing.com -- Earlier today, Metro (TSX:MRU) Inc reported third-quarter profits that significantly exceeded analysts' predictions - which has sparked fresh criticism from the union representing thousands of striking workers across numerous Toronto-based supermarkets.
The company disclosed on August 9 that its third-quarter earnings had surpassed market expectations, with sales soaring almost 10% year-on-year to reach $6.4 billion. The quarter ended with impressive profits of $346.7 million - a significant 26% increase - partly due to a favourable tax ruling.
On an adjusted basis, Metro's quarterly profit amounted to $314.8 million, marking an increase of 10.9%. Furthermore, the adjusted earnings per share stood at $1.35, exceeding projected figures of $1.29.
In reaction to this announcement by Metro on August 9th, Unifor (Canada’s largest private-sector union) argued that grocery clerks should receive "their fair share" from these substantial profit gains.
"Frontline grocery workers need Metro to come back to the table with an improved wage offer," said Paul Whyte, Unifor spokesperson in his statement."
However Eric La Flèche – CEO of Metro – is seeking a deal with the union that allows the grocery chain to maintain competitiveness within the grocery industry amidst persistent food inflation forcing customers to become increasingly price-conscious.
This deadlock between both parties has resulted in the closure of twenty-seven stores for more than ten days and is anticipated to continue indefinitely based on comments made by both sides.
Negotiations between representatives from Metro and Unifor Local 414 have not resumed since July when members rejected the proposed deal leading them to walk off work.
The union claims its members are seeking increased wages within the first contract year replacing pandemic bonus pay received by grocery employees amounting to two dollars per hour; Metro's stance at the time was that, in the words of union negotiators, that “there’s no more money" - a contention that has sparked fresh rounds of criticism in light of today's earnings call.