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To: Kelowna, Vernon and Cranbrook Superstore Meat Production Employees

Re: Central Meat Cutting Facility

As you are probably aware, Westfair Foods announced on October 13 that they would not be proceeding with the planned Meat Cutting Facility. The Company asked us, as well as representatives from UFCW Locals 401 and 1400, to attend a meeting to discuss the retention bonuses they had committed to paying. The Company also wished to discuss a plan to introduce a new training program for Meat Production employees.

It is the intent of the Company to make changes to the retention bonuses promised to employees hired prior to the May 2005 plant announcement, as outlined in the letter the Company mailed you dated October 13, 2006. The Company presented these proposed changes to us verbally, all of which would be considered inferior to their initial offer. The Company no longer wish to pay out the "current employee lump sums" that were implemented on May 8, 2005 but rather a premium to be based on hours worked- combined with a reduced lump sum which would only be paid if the employee was still with the Company in September 2007. We have asked Westfair to formally submit their proposal to us in writing.

We also asked the Company if the Cutting Facility was now a dead issue and if they would guarantee the expansion and operation of its Meat departments for the foreseeable future, or at the very least, for the duration of the collective agreement. They were unable or unwilling to do so.

We will keep you informed of any future discussions.


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