The report’s recommendations, if adopted, would expand the competition watchdog’s powers to look at how companies deal with their employees and suppliers, not just their customers.since last year, when it summoned the heads of the top supermarket chains — Loblaw Cos. Ltd., Sobeys’ parent Empire Co. Ltd., and Metro Inc. — to explain why they cancelled their respective $2-per-hour bonuses for frontline workers on the same day in June 2020.
Davis, meanwhile, sent a “courtesy email” to inform her competitors of Loblaw’s decision to cut its pandemic pay, “recognizing that after telling 200,000 employees, the news would be public immediately.” The bureau’s powers only cover cartel-like behaviours that fix consumer prices, not input prices, due to a 2009 amendment that exempted so-called “buy-side” agreements between competitors.
The report recommended the federal government amend the Competition Act to “prohibit cartel-like practices related to the purchase of goods and services, including wage-fixing agreements” between competitors.
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