Government body sets deadline for grocery code of conduct

OTTAWA — Canada's agriculture ministers have given the country's grocers until the end of the year to propose measures to regulate the industry. 

It comes after the ministers heard from a working group created to improve transparency and fair dealings in the grocery industry during a meeting Thursday. 

The ministers are scheduled to meet next in Guelph, Ont., in September.

Calls for a code of conduct increased after Loblaw Companies Ltd. and Walmart Canada imposed higher fees on suppliers in recent months.

They also come after Loblaw, Walmart and Metro Inc. ended temporary pandemic bonus pay programs for employees when lockdown restrictions first eased and shopping behaviour normalized last year.

The chief executive of grocery company Empire Co. Ltd., which reintroduced its pandemic bonus pay as provinces reinstated lockdowns, lauded the move toward a code for grocery chains. 

"We couldn’t be happier with the announcement and the leadership from the FPT Agriculture Ministers," Michael Medline said in a statement. 

"Empire will continue to be an active voice for an enforceable code. It’s time to move with velocity."

This report by The Canadian Press was first published July 16, 2021.

Companies in this story: (TSX:MRU, TSX:EMP.A, TSX:L)

The Canadian Press