Metro (MRU.TO) after trade Thursday said it has rejected a counteroffer from the union representing employees at its Laval produce-distribution center, transportation operations and head office.
The company said the counteroffer does not provide a basis for a responsible and sustainable agreement because of a significant gap between the two sides on monetary issues.
"We invite the union to work constructively toward a reasonable settlement that will bring an end to this strike and allow operations to resume in a stable and predictable environment for all," Chief Operating Officer Marc Giroux said.
The company said the strike disrupted fresh produce supplies to Metro's 300 stores in Quebec, particularly during the early weeks of the labor dispute. For the first 14 weeks of its third quarter, same-store food sales fell 1.5% from a year earlier. Metro expects lower sales, reduced margins and higher contingency costs to result in adjusted net earnings per share of about C$1.22 to C$1.27 for Q3, down from C$1.52 in the same period last year.
"The impact is temporary in nature and reflects the disruption and additional costs associated with the strike and contingency measures," the company said, adding that it would provide another update when it releases third-quarter results on Aug. 12.
Metro shares closed down C$0.41, or 0.4%, to C$94.21 on the Toronto Stock Exchange.