Ford says ‘ship has sailed’ on changes to booze sales expansion as LCBO strike drags on
Ontario Premier Doug Ford says his government will move forward with further opening the alcohol retail market in the province, shutting down demands from the union representing striking LCBO workers to reconsider parts of the plan.
“Rolling back from the plan that we have a clear mandate from the people to implement isn’t up for discussion,” Ford said at a news conference Wednesday.
“Thousands of businesses are preparing for this exciting milestone. They’ve ordered fridges, dedicated shelf space, or started to hire and train new staff. I’m not going to let those folks down. We’re going to make sure we get this done.”
Beginning later this summer, retailers like grocery, big box and convenience stores will be able to sell beer, wine, cider and ready-to-drink cocktails such as hard seltzers.
The Ontario Public Service Employees Union (OPSEU) says that Ford’s plan could pose an existential threat to the LCBO as a retailer and result in mass layoffs.
Some 9,000 LCBO workers represented by the union walked off the job last Friday after negotiations for a new collective agreement fell apart. The LCBO then shuttered its more than 650 stores across the province for at least two weeks.
OPSEU has taken particular issue with the LCBO losing exclusive rights to retail ready-to-drink spirit beverages. It has demanded the government walk back that part of the expansion or ensure the LCBO is made whole for the lost revenue. The union has also asked for guarantees that no jobs will be lost at the 97-year-old Crown corporation.
‘We won’t back down,’ union leader says
At a news conference on Wednesday, Colleen MacLeod, chair of OPSEU’s liquor board employees division bargaining team, said the union is committed to fighting for the LCBO’s future, job security and public revenues.
MacLeod accused Ford of not listening to the union and of interfering with the bargaining process. She said the union doesn’t believe him when he says the LCBO has a secure future.
“The reaction from our members is that Doug’s not listening… And it’s great to know that he’s trying to bargain with our members, but he really needs to bargain with us,” she said.
“We all need to hear: How much money is going to be lost? How many jobs do we expect to lose? Where will our job security be in the future? Will stores continue to stay open? Will our logistics facilities still continue to provide product to places all across the province … and to ensure that all those jobs at head office that support retail aren’t lost? We need to know that we will still be here and we’re going to continue to be viable.”
In a statement earlier Wednesday, MacLeod said Ford’s expansion plan, which she called his “alcohol-everywhere scheme,” will result in fewer jobs and fewer hours for workers, will harm small businesses that produce alcoholic beverages and will result in lost public revenues drained from health care, education and infrastructure.
“While the premier talks about how important the LCBO is to Ontario — and the importance of Ontario-produced drinks — sadly, his big box plan will harm the craft brewers, wineries and distilleries he mentions,” MacLeod said.
MacLeod said the union is willing to return to the bargaining table immediately, and she accused the premier of lying about the LCBO’s offer.
“We didn’t walk away from the table — the LCBO told us not to come back unless we were willing to give up on our core demands that included job security and growing the LCBO to meet demand and improve convenience,” MacLeod said.
“We won’t back down in our fight to secure a deal that protects the public revenues we help invest in public services like health care and education. At the bargaining table we asked the LCBO very clearly how much revenue they expect to lose, and how many jobs could be lost, and they refused to answer.”
‘This strike should have never, ever happened,’ Ford says
Ford, for his part, made it clear Wednesday he has no intention of revising any part of the expansion plan. He said the union needs to drop its demands around canned spirit drinks for bargaining to resume.
The LCBO said its last offer to the union included a seven per cent wage increase over three years and the conversion of 400 casual jobs into permanent, full-time roles. Currently, about 70 per cent of the LCBO’s employees are casual, according to OPSEU.
“If they want to negotiate over [ready-to-drink beverages], the deal’s off. I’m gonna repeat that: that ship has sailed,” he said, adding that he has heard from LCBO workers their priorities are about wages, benefits and job security.
“This strike should have never, ever happened,” Ford said.
Premier Doug Ford held a news conference at an Etobicoke brewery on Wednesday morning, announcing that his government won’t pull back on alcohol expansion plans as the LCBO strike enters its 6th day. Ford said “that ship has sailed” when asked whether he would reverse course on selling ready-made alcoholic beverages in convenience stores.
The LCBO said it did not want a strike and remains committed to reaching a deal.
“The most constructive thing OPSEU could do is respond to the offer we tabled last week,” the LCBO said in a statement
The LCBO currently generates a roughly $2.5 billion annual revenue dividend for the province, a substantial portion of which is spent on key public services like health care and education. Ready-to-drink cocktails account for about nine per cent of all yearly sales from the LCBO.
Ford stressed the LCBO will continue selling ready-to-drink offerings, but it will need to compete with the private retail market. Under the new regime, the LCBO will be the only retailer of high-alcohol spirits like gin and whisky, as well as the only wholesaler and primary distributor of alcohol in the province — including for ready-to-drink cocktails.
Ford said that since the previous Liberal government introduced wine and beer into grocery stores, LCBO profits have increased year over year.
“Keep in mind when, when you’re the wholesaler, that’s where you make money,” he said.
Premier Doug Ford says he will not back down on his plan of selling ready-to-drink cocktails at grocery and convenience stores in Ontario, despite the ongoing LCBO strike. The union representing more than 9,000 workers argued the provincial liquor store should have the exclusive right to sell pre-mixed drinks. CBC’s Chris Glover has more.
Ford and Finance Minister Peter Bethlenfalvy have been reluctant to put a figure on exactly how much the alcohol retail expansion could hurt the LCBO’s bottom line in the long run.
Internal government and LCBO figures estimate the province is facing a net revenue loss of $150 to $200 million per year as a result of the changes. That does not include the $225 million the government will pay to multinational brewing companies to prematurely end an agreement limiting where, and in what quantities, beer and other malt beverages can be sold in Ontario.
Meanwhile, Ford and his MPPs have attempted to paint the ongoing strike as opportunity for consumers to seek out local, Ontario-made products like craft beer and ciders.
On Monday, Ford rolled out an interactive online map to help consumers find booze retailers in their area.
This week, OPSEU members have been picketing at LCBO distribution warehouses in an attempt to disrupt deliveries of online alcohol sales.
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