While many stores are looking for ways to reduce the numbers of their full-timers to save dollars on wages and benefits and others are laying off workers to get ahead of expected slowdowns, Canada's Loblaw has gone another way. The chain has decided to convert as many as 10,000 jobs from part-time to full-time status to provide shoppers with higher levels of service and to reduce costs associated with staff turnover.
According to a Toronto Star report, Loblaw's workforce is currently about 80 percent part-time. With the projected changes, 30 percent of Loblaw's store employees will achieve full-time status.
Turnover of part-timers at Loblaw stores is approximately 50 percent every three months.
"There's a sweet spot in there where people have better pay and the retailer gets better productivity," Loblaw president and deputy chair Allan Leighton told attendees at an investor conference at CIBC World Markets.
Perry Caicco, an analyst with CIBC, told the Star that the union representing Loblaw workers, the United Food and Commercial Workers, is likely to support moves to increase full-timers and may be receptive to calls by the chain for "flexibility" on its part as it seeks to compete with non-union retailers such as Wal-Mart Stores.
Discussion Questions: Is now a good time for retailers to be looking to shift their mix of full- and part-time workers? Do you think Loblaw is headed in the right direction by looking to increase its percentage of full-timers? Will larger numbers of full-timers add up to happier customers who spend more in stores?