Agence France Presse Oct. 14, 2004

MONTREAL : Retail powerhouse Wal-Mart said it was "concerned about the economic viability" of its store in Canada which is the only one of its outlets in North America to be unionized.

"It has been several weeks since the Jonquiere store was automatically certified with the United Food and Commercial Workers union (UFCW), but no communication from the union has been received with regard to beginning talks with the company," Wal-Mart said in a statement regarding the store in the province of Quebec.

"The Jonquiere store is not meeting its business plan, and the company is concerned about the economic viability of the store. Wal-Mart Canada believes the unresolved labor situation at the Jonquiere store is proving detrimental to improving the performance of the store.

"The Wal-Mart associates in Jonquiere know their store is not meeting its business goals, and they would like the labor-relations process to move forward as quickly as possible so they can have certainty over operating conditions at the store."

In August, Canadian trade unionists proclaimed a "great victory" after winning the right to form the first labor union at a branch of the world's largest retailer.

Efforts are underway at other Wal-Mart stores in Canada to win labor union recognition.

Low labor costs have allowed the firm to slash prices on goods in its huge stores, which stock groceries to golf clubs and everything in between.

Only a few meat cutters in Texas have so far managed to outflank the firm's efforts to avoid unionization.

- AFP