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Metro Southgate store to become Food Basics, leaving dozens unemployed

Metro Inc. is converting its Southgate grocery in Ottawa's South Keys neighbourhood to a Food Basics discount format, resulting in the termination of 72 employees.

Metro Inc. announced that its Southgate location in Ottawa's South Keys area will be rebranded as a Food Basics discount grocery, citing market conditions and customer needs. The closure, communicated to staff in May, led to the termination of 72 employees, many of whom were surprised by the decision. The company stated that former workers may apply for jobs at the new store, which is required to employ at least ten part-time and five full-time staff who were previously at the Metro location.

Because Food Basics operates under a different wage system, any seniority would be considered only within its own pay scale, offering limited reassurance to employees like Braganza, who noted his role as a meat cutter would not exist at the discount banner. The United Food and Commercial Workers union negotiated enhanced severance and job-placement options for affected members. Legal experts suggest the company could face grievances if the claimed work shortage is challenged.

Why it matters

The conversion threatens jobs for dozens of workers and highlights tensions between corporate restructuring and employee rights.

In this story

store conversiondiscount groceryjob lossesseniorityseveranceunion negotiationsmarket conditions