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

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LCBO stores across Ontario are set to close after labour negotiations between the Crown corporation and the union representing its workers broke down just hours before a strike deadline, marking a historic departure from talks in previous years.

Colleen MacLeod, chair of the Ontario Public Service Employees Union (OPSEU) bargaining committee, said Thursday that more than 9,000 Liquor Control Board of Ontario workers will be on strike when the clock strikes midnight.

The biggest sticking point, Ms. MacLeod said, was 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. The province’s move to privatize liquor sales challenges the LCBO’s position as a Crown corporation and alcohol retailer.

“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.”

The failure to reach an agreement before a strike deadline is unprecedented. On previous occasions, including four times in the past 20 years, LCBO workers have consistently reached a deal without walking off the job.

An LCBO statement after the OPSEU’s press conference said the corporation’s latest offer, tabled at 4:20 p.m. on Thursday, responded to a number of OPSEU demands including wage increases and invited the union to provide a counterproposal, but the OPSEU refused to do so.

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.

“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,” the statement says.

“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, the 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 reopen for shopping on Fridays, Saturdays and Sundays, with limited hours.

An LCBO customer, Michael Bathurst, who was picking up wine at a midtown-Toronto location 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 Crown corporation 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,” he said.

Ian Lee, a professor who researches unions at Carleton University’s Sprott School of Business, said the expanded privatization of alcohol sales has decreased the OPSEU’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,” he said.

Ontario’s provincial government said expanding privatization 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 and Mail 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, which ultimately contributes to the financing of public services.

“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,” she 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 in the labour negotiations, as 70 per cent of the work force 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, the 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.”