The federal government has been working to convince key players in the grocery industry, such as Loblaw and Walmart, to sign the grocery code of conduct, which sets out rules for negotiations between industry players. While the code was progressing well, cracks began to appear in the months leading up to a House of Commons meeting where the grocers said they couldn’t sign the code as it stood. Loblaw and Walmart cited concerns that the code would raise prices for Canadians by more than $1 billion. As a result, progress on the code adjudicator office, which was meant to be launched alongside the code, has stalled.
Efforts were made by officials to get retailers on board with the code even before signs of reticence from Loblaw and Walmart became apparent in October. The federal government emphasized the importance of all large retailers committing to the code during meetings with industry players. However, the two retailers expressed reluctance to publicly confirm their support for the code until its finalization. Despite these challenges, there is still hope that a solution can be found. The possibility of making the code mandatory through legislation is being considered, with the House of Commons committee urging Loblaw and Walmart to sign on.
Proponents of the code have pushed back on claims that it could lead to higher retail prices. The industry steering committee has requested around $1.8 million in government funding to support the implementation of the code adjudicator office. The majority of funding is expected to come from large retailers and manufacturers, with plans in place for various scenarios regarding industry participation. While the code is intended to be voluntary, there have been discussions about potentially making it a legal requirement to ensure everyone’s participation.
Loblaw and Walmart have expressed concerns about the code potentially raising food prices for Canadians and adding unnecessary burdens. However, both companies have stated their willingness to work constructively with the industry on the topic. There have been ongoing conversations between the industry committee and Loblaw to address issues with the code and find a solution that everyone can support. The committee is exploring potential changes to the code language to provide more clarity and address retailers’ concerns.
The federal government has been actively examining all options, including legislation, to ensure the successful implementation of the grocery code of conduct. Officials are waiting for the outcome of industry discussions before taking further steps related to the funding request for the code adjudicator office. While progress on the office has stalled due to opposition from Loblaw and Walmart, there is still hope that a resolution can be reached. The industry committee remains committed to finding a solution that benefits all stakeholders in the grocery industry.
