Nearly 400 Safeway warehouse workers to lose jobs

It wasn’t a summer surprise 391 Summit Logistics employees were expecting.

On Monday, the Summit workers who staff the Safeway warehouse at 7155 11th Ave. in south Burnaby received layoff notices telling them Canada Safeway won’t be renewing its commercial agreement with Summit Logistics; as a result, Summit will cease operations at the end of February, 2011.

The layoffs will affect 31 managers and 360 union members.

In the form letter that Glenn Welsh, senior director of operations, sent to employees, he said "the site closure will impact all management, as well as Summit employees who are members of Retail Wholesale Union Local 580.

"In the time between now and Feb. 28," Welsh continues, "Summit has a responsibility to continue to distribute Safeway’s products in the same efficient manner as in the past. We ask for your cooperation and support for our intention to carry out this site closure in a professional manner."

"It was a shock when it happened but when you think about it, it’s not really all that surprising," said Shawn Lakusta, assistant provincial representative for the Retail Wholesale Union Local 580. "Whenever you have a third-party business, you know the company (Safeway) can change distributors."

While the warehouse has been in operation since the 1950s, Summit didn’t take over the warehouse and trucking contract until 1996.

According to Lakusta, Safeway informed Summit they were moving their warehouse to Langley and using a company called Cold Logic Corp.

Lakusta said many of the union members were disappointed at the news, but the one silver lining is that the closure came with a six-month notice.

"It would have been a lot harder if the guys had come into work and the doors were locked," said Lakusta. "I guess the goal now is to do everything in an orderly manner."

"The union will do what we can to place them in jobs on other sites," he said. "We will also look at whatever legal means we have as well."

The closure means that the 44-acre property, when redeveloped, will have the potential to change the entire south Burnaby area.

Coun. Paul McDonell, when informed of the closure on Tuesday morning, said part of the property has been earmarked for parkland.

Calls to Canada Safeway’s public affairs and media relations line were not returned by deadline.