Documents reveal Ottawa's efforts to get Loblaw, Walmart on board with grocery code
It was evident to the federal government as early as last fall that Loblaw and Walmart might be holdouts to the grocery code of conduct, jeopardizing the project's success.
Documents obtained through access to information legislation shed new light on the federal government’s efforts to convince the two retailers to sign the grocery code of conduct, with cracks appearing in the months leading up to a House of Commons meeting where the grocers said they couldn't sign the near-complete code.
“There are ongoing federal efforts to seek commitment from key players, including large retailers like Walmart and Loblaws, to participate in the code,” read a briefing note prepared on Sept. 22 for a meeting between federal agriculture and agri-food minister Lawrence MacAulay and Quebec agriculture and food minister André Lamontagne.
The document, obtained through the Access to Information Act, says participation by some of the largest retailers — namely Loblaw and Walmart — is “still to be determined.”
The code of conduct is intended to set out agreed-upon rules for negotiations between industry players, including retailers and suppliers. It would also include a dispute resolution process.
It was meant to be voluntary, but it's always been acknowledged that it needs all the major players on board to work, said Francis Chechile, a spokesman for MacAulay, in a statement.
Until last fall, the code appeared to be progressing well, said Chechile, noting that federal, provincial and territorial governments had been closely monitoring progress and engaging with stakeholders including Loblaw and Walmart.
“By late October, it had become evident that the hesitation from Loblaw and Walmart was such that it posed a risk to the successful implementation of a code with full industry participation," said Chechile.
On Dec. 7, leaders from Loblaw and Walmart told the House of Commons committee studying food prices that they couldn’t commit to signing the code in its current form, citing concerns it would raise prices.
At the meeting, Loblaw chairman Galen Weston said he stood by a letter the company had sent a month earlier to the committee developing the code. The letter said that Loblaw was worried the code could “raise food prices for Canadians by more than $1 billion."
The Dec. 7 committee meeting served as public confirmation of the two grocers' unwillingness to sign on to the code as drafted, said Michael Graydon, CEO of the Food, Health and Consumer Products of Canada association and leader of the group that's been developing the code. However, he also said there were indications for him around October that this might happen.
As the code neared completion, plans were underway to launch a grocery code adjudicator office.
But after the Dec. 7 comments by Loblaw and Walmart, progress on the office stalled. Work to hire an adjudicator is on hold, and a funding request for the office is in limbo, said Graydon.
However, even before indications of the two grocers' reticence became apparent to Graydon and the federal government in October, officials were working to get the retailers on board, the documents show.
Deputy minister of agriculture Stefanie Beck, two representatives from Loblaw and three other government officials met on Sept. 22 to discuss several issues, primarily sustainable agriculture, according to a briefing note.
But they also planned to talk about the code. The briefing note said government officials should “underscore the federal desire that all large retailers commit to the grocery code of conduct.”
“Loblaws has not taken an active role in the industry-led process to develop a grocery code of conduct and they have been reluctant to publicly confirm support for the code until the industry proposal is finalized,” the note reads.
The federal, provincial and territorial ministers had a call on Nov. 27 to discuss the code and the possibility that the two major retailers might not adopt it, according to a briefing note.
Though the code is meant to be voluntary, recently there have been talks of making it law instead to force everyone to participate.
MacAulay has said that the government is “actively examining all federal options,” including legislation.
And in a letter mid-February, the House of Commons committee urged Loblaw and Walmart to sign on, saying if they didn’t, it would “not hesitate to recommend that the federal and provincial governments adopt legislation to make it mandatory.”
Graydon is still hopeful.
“I don't think it's dead in the water; I think there is some really strong desire to try to find a solution,” he said.
The group is looking at whether some of the language of the code could be changed to bring more clarity, or more prescriptiveness, said Graydon — “and there seems to be openness, at least from one of the retailers, to have those conversations.”
Conversations with Loblaw have given the committee a chance to explain aspects of the code and see whether a solution can be reached, he said.
“My sense is they're legitimate in their approach to try to find a solution.”
Loblaw spokeswoman Catherine Thomas said in an email the company is an “active participant in the ongoing industry process” and is optimistic a code can be finalized that everyone can support.
Walmart Canada spokeswoman Sarah Kennedy directed The Canadian Press to previous public statements about the code by the retailer, including one from October in which the company said it’s “conscious of adding unnecessary burdens that could increase the cost of food for Canadians.”
A more recent statement from mid-February states that Walmart supports initiatives promoting fairness and reciprocity, and benefiting consumers.
“While we have significant concerns about the code in its current form, we will continue to work constructively with the industry on this topic.”
Proponents of the code have pushed back on claims that it could lead to higher retail prices.
The documents also show that the industry steering committee requested around $1.8 million in government funding to support the implementation of the not-for-profit grocery code adjudicator office.
A memo to the deputy agriculture minister digitally signed on June 6, 2023 describes the request for a non-repayable contribution from federal, territorial and provincial governments to support the office for its first two years, “until its revenue model is implemented and becomes self-sufficient.”
“The majority of funding is going to come from large retailers and large manufacturers,” said Graydon, though the group has planned for scenarios in which not all major players sign on right away.
“Hopefully, it's the opposite, everybody's in, everybody's early, we get the funding that we require, and we can reduce the requirements in regards to any sort of contribution from government,” he said.
Chechile confirmed that “officials are awaiting the outcome of industry discussions before taking further steps” related to the funding request.
— With files from researcher Ken Rubin in Ottawa
This report by The Canadian Press was first published April 26, 2024.
IN DEPTH
Budget 2024 prioritizes housing while taxing highest earners, deficit projected at $39.8B
In an effort to level the playing field for young people, in the 2024 federal budget, the government is targeting Canada's highest earners with new taxes in order to help offset billions in new spending to enhance the country's housing supply and social supports.
'One of the greatest': Former prime minister Brian Mulroney commemorated at state funeral
Prominent Canadians, political leaders, and family members remembered former prime minister and Progressive Conservative titan Brian Mulroney as an ambitious and compassionate nation-builder at his state funeral on Saturday.
'Democracy requires constant vigilance' Trudeau testifies at inquiry into foreign election interference in Canada
Prime Minister Justin Trudeau testified Wednesday before the national public inquiry into foreign interference in Canada's electoral processes, following a day of testimony from top cabinet ministers about allegations of meddling in the 2019 and 2021 federal elections. Recap all the prime minister had to say.
As Poilievre sides with Smith on trans restrictions, former Conservative candidate says he's 'playing with fire'
Siding with Alberta Premier Danielle Smith on her proposed restrictions on transgender youth, Conservative Leader Pierre Poilievre confirmed Wednesday that he is against trans and non-binary minors using puberty blockers.
Supports for passengers, farmers, artists: 7 bills from MPs and Senators to watch in 2024
When parliamentarians return to Ottawa in a few weeks to kick off the 2024 sitting, there are a few bills from MPs and senators that will be worth keeping an eye on, from a 'gutted' proposal to offer a carbon tax break to farmers, to an initiative aimed at improving Canada's DNA data bank.
Opinion
opinion Don Martin: Gusher of Liberal spending won't put out the fire in this dumpster
A Hail Mary rehash of the greatest hits from the Trudeau government’s three-week travelling pony-show, the 2024 federal budget takes aim at reversing the party’s popularity plunge in the under-40 set, writes political columnist Don Martin. But will it work before the next election?
opinion Don Martin: The doctor Trudeau dumped has a prescription for better health care
Political columnist Don Martin sat down with former federal health minister Jane Philpott, who's on a crusade to help fix Canada's broken health care system, and who declined to take any shots at the prime minister who dumped her from caucus.
opinion Don Martin: Trudeau's seeking shelter from the housing storm he helped create
While Justin Trudeau's recent housing announcements are generally drawing praise from experts, political columnist Don Martin argues there shouldn’t be any standing ovations for a prime minister who helped caused the problem in the first place.
opinion Don Martin: Poilievre has the field to himself as he races across the country to big crowds
It came to pass on Thursday evening that the confidentially predictable failure of the Official Opposition non-confidence motion went down with 204 Liberal, BQ and NDP nays to 116 Conservative yeas. But forcing Canada into a federal election campaign was never the point.
opinion Don Martin: How a beer break may have doomed the carbon tax hike
When the Liberal government chopped a planned beer excise tax hike to two per cent from 4.5 per cent and froze future increases until after the next election, says political columnist Don Martin, it almost guaranteed a similar carbon tax move in the offing.
CTVNews.ca Top Stories
NEW 'She was waiting for you': The story of how a B.C. man found his birth mother in England
After his adopted parents died, Dave Rogers set out to learn more about his birth mother. DNA results and a little help from friendly strangers would put him on a path to a small town in England.
Macklem tries to stay out of the fray as MPs do their best to use him to score points
Bank of Canada governor Tiff Macklem navigates a political minefield every time he testifies before the House of Commons finance committee.
Montreal man on the hook for thousands of dollars after a feature on his Tesla caused an accident
A Montreal man is warning Tesla drivers about using the Smart Summon feature after his vehicle hit another in a parking lot.
Israeli army tells Palestinians to evacuate parts of Gaza's Rafah ahead of an expected assault
The Israeli army on Monday ordered tens of thousands of Palestinians in Gaza's southern city of Rafah to start evacuating from the area, signalling that a long-promised ground invasion there could be imminent.
Actor Bernard Hill, of 'Titanic' and 'Lord of the Rings,' has died at 79
Actor Bernard Hill, who delivered a rousing cry before leading his people into battle in 'The Lord of the Rings: The Return of the King' and went down with the ship as the captain in 'Titanic,' has died.
Dash cam catches moment suspected drunk driver hits parked car, sends it careening into North Shore flower shop
Police say it’s fortunate no one was injured or killed in a collision at North Vancouver’s Park and Tilford shopping centre Saturday evening that sent one vehicle careening into a flower shop and another into a set of concrete barriers outside a Winners store.
A Holocaust survivor will mark that history differently after the horrors of Oct. 7
This year's Holocaust Remembrance Day, which begins on Sunday evening in Israel, carries a heavier weight than usual for many Jews around the world.
India's foreign minister reacts to murder charges, claims Canada welcomes criminals
India's Foreign Affairs Minister accused Canada of welcoming criminals from his country in response to the RCMP's recent arrests in a homicide that has roiled tensions between the two countries.
15-year-old boy stabbed in Ottawa on Thursday dies
A 15-year old boy who was critically injured after a stabbing in Nepean on Thursday has died of his injuries, Ottawa's English public school board said Sunday.
Local Spotlight
15-year-old boy stabbed in Ottawa on Thursday dies
A 15-year old boy who was critically injured after a stabbing in Nepean on Thursday has died of his injuries, Ottawa's English public school board said Sunday.
'A tiny city:' Pro-Palestinian campus protesters organize for another week
Pro-Palestinian activists have set up tents at universities in Toronto, Ottawa, Vancouver and Montreal, following a wave of similar protests at campuses in the United States linked to the Israel-Hamas war.
Twin Alberta Ballet dancers retire after 15 years with company
Alberta Ballet's double-bill production of 'Der Wolf' and 'The Rite of Spring' marks not only its final show of the season, but the last production for twin sisters Alexandra and Jennifer Gibson.
B.C. mayor stripped of budget, barred from committees over Indigenous residential schools book
A British Columbia mayor has been censured by city council – stripping him of his travel and lobbying budgets and removing him from city committees – for allegedly distributing a book that questions the history of Indigenous residential schools in Canada.
Three Quebec men from same family father hundreds of children
Three men in Quebec from the same family have fathered more than 600 children.
Here's how one of Sask.'s largest power plants was knocked out for 73 days, and what it took to fix it
A group of SaskPower workers recently received special recognition at the legislature – for their efforts in repairing one of Saskatchewan's largest power plants after it was knocked offline for months following a serious flood last summer.
Quebec police officer anonymously donates kidney, changes schoolteacher's life
A police officer on Montreal's South Shore anonymously donated a kidney that wound up drastically changing the life of a schoolteacher living on dialysis.
Canada's oldest hat store still going strong after 90 years
Since 1932, Montreal's Henri Henri has been filled to the brim with every possible kind of hat, from newsboy caps to feathered fedoras.
Road closed in Oak Bay, B.C., so elephant seal can cross
Police in Oak Bay, B.C., had to close a stretch of road Sunday to help an elephant seal named Emerson get safely back into the water.