LCBO workers to begin strike as talks with Crown corporation break down, union says

LCBO stores across Ontario are set to close tomorrow after talks between the Crown corporation and the union representing its workers broke down Thursday evening, just hours before a midnight strike deadline.

“LCBO workers are ready to make history…more than 9,000 LCBO workers will be out on strike as of 12 a.m.,” Colleen MacLeod, chair of the OPSEU bargaining committee, told a press conference on Thursday.

The biggest sticking point, Ms. MacLeod said, was Ontario premier Doug Ford’s recent decision to allow alcohol sales in convenience and big box stores starting in September, particularly ready-to-drink beverages such as coolers.

“If we were dealing with the employer and not the premier, we’re certain this strike could’ve been avoided,” she said. “We have a ghost at the table in the form of the premier… Doug is forcing a dry summer upon Ontario.”

In a written statement, Ontario Finance Minister Peter Bethlenfalvy said that the government is disappointed by OPSEU’s decision to walk away from the bargaining table hours before the deadline.

“We are particularly disappointed that OPSEU is opposed to giving people in Ontario the choice and convenience of buying readymade drinks, like coolers and seltzers, in grocery and convenience stores,” said the statement. “We urge OPSEU to return to the negotiating table and work towards a deal that prioritizes Ontario consumers and producers.”

In a statement released last month, LCBO said a strike would see all of its stores shut for two weeks while they adjust to a new operating model. Customers will still be able to shop online and at 2,300 private retailers across Ontario, including grocery stores, wineries and distilleries, Beer Stores and small general stores licensed to sell alcohol. After two weeks, a few dozen stores will re-open for shopping on Fridays, Saturdays and Sundays, with limited hours.

Michael Bathurst, who was picking up wine at a midtown-Toronto LCBO ahead of the strike, said he would’ve been more panicked about the news if he was a bigger drinker and if there were fewer alternatives to the LCBO as there were in the past. “A couple years ago if it was coming up I’d be nervous — not so much now, I think it’s gonna be fine,” said Mr. Bathurst.

Ian Lee, a professor at Carleton’s Sprott School of Business who researches unions said the expanded privatization of alcohol sales has decreased the union’s bargaining power.

“Unlike the other striking unions that held bargaining power, OPSEU has much less power — indeed a strike may further reduce their power if the government of Ontario accelerates the decision to open up sales to grocery stores and corner stores,” said Mr. Lee.

Ontario’s provincial government said expanding the privatization of liquor sales would add 8,500 new alcohol purchase locations across the province and that LCBO would be the wholesaler, with its revenues possibly surging by as much as $1-billion. But the Globe previously learned that wholesale work for the new outlets has already been contracted to private-sector company, Trillium Supply Chain Services, which is owned by DHL.

Ms. MacLeod said the move would have a serious impact on LCBO revenue, pointing to the $2.5-billion that the Crown corporation generates in profit every year.

“Premier Ford is trying to sell us a bad deal, one that hands over more of the alcohol market to big grocers and convenience chains like Loblaws and Circle K,” Ms. MacLeod said in a press conference on June 18. “It will threaten hundreds of millions of dollars in public revenues that fund public services like health care and education.”

Compensation and job security were also key points of contention as 70 per cent of the workforce is currently made up of casual employees. Ms. MacLeod previously told The Globe that workers who hold full-time status – usually after years as casual staff – make $16.75 an hour to start, while top earners could get $30.57 after nine years.

“LCBO workers deserve job security, livable wages and fair treatment,” said Stephen Blais, MPP for Orleans and Ontario liberal critic for labour and skills training in a press statement. “We know OPSEU workers are at the table ready to bargain for a fair deal, the government needs to do the same.”

LCBO workers have consistently reached a deal ahead of a strike deadline without walking off the job, including on four occasions in the past twenty years.