Canadian warehouse workers sign historic first collective agreement with Walmart

Warehouse workers in Mississauga, Ontario, have officially signed the first collective agreement with retail giant Walmart, a breakthrough that labor organizers describe as a 'historic and powerful step.' The deal, reached in May 2024, includes wage increases, guarantees on working conditions, and a one-time payment to settle complaints of unfair labor practices.

Lana Payne, president of Unifor — Canada‘s largest private-sector union — emphasized: 'These members were determined to win workplace democracy and they persisted. Their courage, determination, and decision to sit down at the bargaining table with one of the world’s largest corporations is why they made labor history.'

Workers at the high-volume distribution center — which serves one of Walmart’s most important Canadian markets — began their unionization drive in 2024. It took two years before both sides reached an agreement.

Payne said the victory is part of a deliberate union strategy targeting the most influential parts of the business. While retail stores have unionized in the past, the powerful distribution hubs — which supply more than 100 physical stores and handle online orders — remained largely unreachable.

'We felt we needed to focus serious effort on the entire supply chain. This win will create momentum for the entire warehousing sector,' Payne said.

In the Mississauga case, Walmart raised wages for workers in other areas but not for the unionized distribution center. Under the new collective agreement, Walmart will pay a lump sum to resolve complaints about unfair labor practices. The company has not yet issued an official comment.

The dramatic transformation of the economy in recent years has increased the power of technology and e-commerce companies, altering the nature of worker organizing, Payne observed.

'Current labor laws are not strong enough to deal with giant corporations that can resist unionization. The situation today is no different from what workers faced 70 years ago, when unions made breakthrough advances with auto, steel, or mining workers.'

Unifor has opened a second front in the fight: an Amazon facility in British Columbia, a province with labor laws more favorable to union organizing. Recently, the British Columbia Labor Board ruled that Amazon had unlawfully withheld planned wage increases for workers at that facility, even though it raised wages at all other Amazon facilities in the area. The company may have to repay more than 1 million Canadian dollars in back wages.

Amazon said it had misread the labor law and believed it 'prevented us from changing wage rates for employees at the warehouse.' However, the board‘s decision means those previously excluded employees will soon receive 'updated compensation.' Spokesperson Eileen Hards stated: 'Taking care of our employees is always our priority, and that remains true as we continue to follow the legal process and bargain in good faith with the union.'

Jim Stanford, an economist and director of the Centre for Future Work, said Amazon and Walmart are among the most powerful companies in price setting — not only with consumers but also with suppliers and workers. 'There is an incredible contradiction between Walmart being one of the largest, most profitable companies in the world, and many of its workers having to go to food banks because they can‘t afford groceries. But with a union and a labor contract, workers have a chance to win a fairer share of the wealth they create.'

Stanford noted a 'shift in attitudes' in recent years, as workers realize employers can exploit them, make jobs more precarious, and reduce compensation. Despite challenges, recent successes are likely to fuel more union campaigns. 'Workers around the world have struggled for years to extract a share of Walmart’s profits in the form of higher wages and better jobs — it‘s a David-and-Goliath battle because of Walmart’s power and anti-union stance. But this collective agreement is clear proof. There are things that fundamentally change how working life happens, and it will make a big difference for these workers.'