Grocery code: How Ottawa has tried to get Loblaw, Walmart on board

It was evident to the federal government as early as last fall that Loblaw and Walmart might be holdouts to the grocery code of conduct, documents show.

It was evident to the federal government as early as last fall that Loblaw and Walmart might be holdouts to the grocery code of conduct, jeopardizing the project’s success.

Documents obtained through access to information legislation shed new light on the federal government’s efforts to convince the two retailers to sign the grocery code of conduct, with cracks appearing in the months leading up to a House of Commons meeting where the grocers said they couldn’t sign the near-complete code.

“There are ongoing federal efforts to seek commitment from key players, including large retailers like Walmart and Loblaws, to participate in the code,” read a briefing note prepared on Sept. 22 for a meeting between federal agriculture and agri-food minister Lawrence MacAulay and Quebec agriculture and food minister André Lamontagne.

The document, obtained through the Access to Information Act, says participation by some of the largest retailers — namely Loblaw and Walmart — is “still to be determined.”

The code of conduct is intended to set out agreed-upon rules for negotiations between industry players, including retailers and suppliers. It would also include a dispute resolution process.

It was meant to be voluntary, but it’s always been acknowledged that it needs all the major players on board to work, said Francis Chechile, a spokesman for MacAulay, in a statement.

Until last fall, the code appeared to be progressing well, said Chechile, noting that federal, provincial and territorial governments had been closely monitoring progress and engaging with stakeholders including Loblaw and Walmart.

“By late October, it had become evident that the hesitation from Loblaw and Walmart was such that it posed a risk to the successful implementation of a code with full industry participation,” said Chechile.