Craig’s Cookies workers vote to form union at 5 Toronto stores as franchise expands nationally

Nearly 90 Craig’s Cookies employees at five stores in Toronto have voted to unionize as the Canadian chain expands nationally.

After a two-week organizing campaign that began in early December, more than 85 workers voted last week to join with Unite Here Local 75, which represents workers in the food service and hospitality industries.

Employees work at five Craig’s Cookies stores in Toronto: its East York, Church-Wellesley, Leslieville, Parkdale and Union Station locations.

Daniel Janvier, a researcher for Unite Here Local 75 who helped organize the campaign, said, “The most immediate factor – kind of the straw that broke the camel’s back for these workers – was the decision to remove paid leave.”

According to Janvier, workers are also concerned that their wages have not kept pace with inflation and are no longer competitive in relation to the broader food service industry.

“The company is growing. It’s incredibly successful. It’s successful because of these workers,” he said. “These employees know that the investment they have made in the company is what has led to their massive growth across the city and across the country.”

A spokesperson for Craig Cookies told CBC News that the company respects the results of the vote and the workers’ decision to unionize, and will work in good faith with the union.

“Craig Cookies has always been committed to competitive compensation, including comprehensive benefits and treating team members fairly,” the spokesperson said.

When asked to comment on the union’s allegation that the company had abolished paid leave, the spokesperson did not comment.

Craig’s Cookies is owned by Craig Pike, who started the chain as a home baking business in 2013. While it operated largely under a pop-up model during its first few years, the first brick-and-mortar Craig’s Cookies location opened in Toronto in 2018.

Since then, it has expanded to 22 stores across the country. Most are in Ontario, with others based in Calgary and Pike’s hometown of St. John’s. A 23rd store is expected to open in Halifax in the new year.

‘Very unique’ to the Canadian food service industry

For a mature business that is expanding – but may not yet have a sophisticated human resources system – consolidating multiple stores under a collective agreement could be an attractive option, according to one expert.

“Once you get to that scale, it becomes difficult to operate as a kind of mom-and-pop operation and (the demands) on workers increase,” said Rafael Gomez, director of the Center for Industrial Relations and Human Resources at the University of Toronto.

“If you don’t have a sophisticated human resources system, the union model is attractive to workers.”

Craig Cookies operates partially under a franchise model, meaning that the corporation licenses its brands and products to individual store owners. This doesn’t change by collective agreement, but Gomez points out that it could be a turn-off for some potential franchisees.

“On the other hand, it may not be. A collective agreement also simplifies many things. You don’t really need your own HR team when the union and the collective agreement essentially specify most of the terms and conditions of work,” he said.

Statistics Canada data shows that the unionization rate has been on the decline In Canada since the 1980s, private sector employees have been less likely to be covered by a collective agreement than their public sector counterparts.

The coverage rate of the food service industry in particular is low – just 5.2 percent The industry was unionized in 2023. So the unionization of dozens of Craig’s Cookies workers is “quite unique from that standpoint,” Gomez said.