(Toronto) Workers at Ontario’s largest alcohol retailer, who say the government’s plan to open up the liquor market poses an existential threat to their jobs, are now on strike and stores are expected to remain closed for at least 14 days.
Thousands of workers at the Liquor Control Board of Ontario (LCBO) went on strike Friday morning in the first such work stoppage in the retailer’s history, after months of contract negotiations between their union and management failed to produce a new deal.
The Ontario Public Service Employees Union (OPSEU) had originally set a strike deadline of 12:01 a.m. Friday. After that time, the union shared a video of workers protesting outside an LCBO warehouse east of Toronto.
“Welcome to Doug Ford’s dry summer,” read the caption of the video posted on the union’s social media.
OPSEU fears job losses after Premier Doug Ford’s government announced plans to open up the alcohol market to allow convenience stores and all grocery stores to sell beer, wine and ready-to-drink cocktails.
The union says the accelerated plan to further privatize alcohol sales threatens the future of the LCBO and its public revenues.
The first phase is expected to begin in less than a month, when grocery stores that already sell beer and wine will be able to sell ready-to-drink cocktails. Convenience stores will be able to start selling beer, wine, cider and ready-to-drink cocktails starting September 5.
The Alcohol and Gaming Commission of Ontario announced in June that it had granted nearly 1,900 convenience store licences just days after applications opened.
“We will be at the table if the government is serious about addressing some of our key concerns about how to secure a future for the LCBO so it can compete on an equal footing with private interests,” OPSEU President JP Hornick said at a news conference Thursday evening.
We know the LCBO can do better, more safely, and that we can keep public money in public coffers.
JP Hornick, OPSEU President
A previous expansion of alcohol sales under the former Liberal government, which put beer and wine on the shelves of some grocery stores, kept spirits sales in the hands of the LCBO. Until recently, Doug Ford’s plan did not include spirits.
Hornick said the union doesn’t object to Ford following through on his 2018 campaign promise to allow beer and wine to be sold in convenience stores, but it wants to keep ready-to-drink cocktails out of those locations.
“The ball is in Premier Ford’s court as to how he wants to approach this issue. We believe the employer is prepared to negotiate. We believe there are many shared interests here, but the Premier is the sticking point.”
Finance Minister Peter Bethlenfalvy wrote in a statement that the government was “more committed than ever” to its plan.
“We are particularly disappointed that OPSEU is opposed to giving Ontarians the choice and convenience of purchasing ready-to-drink beverages in grocery and convenience stores.”
Industry concerned
Premier Ford’s office has said the government is not considering legislation to force a return to work.
PHOTO BRENT LEWIN, BLOOMBERG ARCHIVES
A prolonged strike could be disastrous for bars and restaurants in the province, an industry official says.
There are about 14,000 Ontario restaurants and bars that rely on the LCBO. About half of them were struggling to break even before the strike, said Kris Barnier, vice-president of Restaurants Canada.
Alcohol sales account for about 30% of its members’ income on average, he estimated. But that proportion is much higher for nightclubs and pubs, where more than 60% of revenue comes from alcohol sales.
“The longer a strike lasts, the greater the risk. It’s a scary time for our industry,” he said.
He said the LCBO has agreed to open five branches so licensed bars and restaurants can purchase alcohol.
“It could be a matter of life or death for many businesses.”
LCBO ‘disappointed’ by union decision
With the strike, OPSEU is also seeking wage increases and more full-time employees, saying 70 per cent of its workforce is part-time.
The LCBO said its latest proposal met a number of workers’ demands, but the union did not make a counter-offer. It said it was “disappointed” by the union’s decision to strike, but hoped a fair deal could be reached soon.
“We will continue to operate our business, but it will not be business as usual,” read a statement from the LCBO released Friday morning.
LCBO stores will be closed for the next 14 days, but online orders will be available with free home delivery, although product limits apply.
The strike does not affect LCBO stores in smaller communities, and sales are also continuing at grocery stores, private wineries, breweries and distilleries, as well as bars, restaurants and The Beer Store.
The LCBO’s latest proposal, which was tabled Thursday afternoon, includes wage increases of 2.5 per cent in the first two years of the deal and 2 per cent in the third year, as well as a special adjustment for some warehouse positions.
The proposal would convert about 400 part-time workers to full-time permanent workers, improve access to benefits for part-time workers, expand work schedules for full-time permanent retail workers and improve severance provisions.