EDITOR’S NOTE: This article originally appeared on The Trillium, a Village Media website devoted to covering provincial politics at Queen’s Park.
LCBO workers are set to go on strike on July 5 if they can't reach a deal — and one of their demands is changes to the Ford government's plan to allow beer, wine, and ready-made cocktails to be sold in grocery and corner stores.
Ontario Public Service Employees Union (OPSEU) president JP Hornick said the union has proposed an alternative business model to the government's planned expansion of alcohol sales.
"If the government doesn't want a hot, dry summer, then they need to look at the alternative plan that keeps the convenience, that doesn't roll back on expansion but makes sure that it is done in a way that is responsible, that protects public money, and that protects good jobs," Hornick said.
One key criticism of the plan is its cost to the public purse. The government has committed to paying the brewers that own The Beer Store up to $225 million for costs associated with breaking its previous contract before its expiry at the end of 2025. The Ontario Liberal Party estimated the changes will cost the treasury $1 billion over the next year and a half, when all costs, including lost LCBO revenue and forgone fees, are factored in.
Union leaders said Tuesday that they believe the costs will be at least that, and warned of a permanent reduction in the province's revenue when the LCBO loses sales to grocery stores and corner stores.
Hornick suggested that the union's alternative plan would be less favourable for Canada's big grocery chains. It would mean alcohol revenues would "stay in the public sector so that they continue to fund health care and education rather than Galen Weston's new yacht," Hornick said, referring to the chairman of Loblaw.
It would also include restricting the sale of spirit-based ready-made drinks to the LCBO. Spirits are still restricted to the government-owned liquor store in the plan the Ford government is set to roll out over the next few months.
However, the union declined to offer full details of the proposal and stopped short of saying that the government's refusal of it would prompt a strike.
The LCBO could avoid a strike by responding to the union's proposal and negotiating in good faith, said Hornick.
The union is also asking for wage increases to keep up with inflation and job protections that include more permanent positions in LCBO retail stores, organizers said.
They have been negotiating with the LCBO since March and received a no-board report from the Ministry of Labour on Tuesday after members voted overwhelmingly to authorize a strike.
Organizers said they believe the Crown corporation is taking its marching orders from the Ford government.
"It's clear that we're not bargaining with the LCBO, and that the people at the table do not call the shots," said Colleen McLeod, chair of OPSEU'S Liquor Board Employees Division.
At the press conference, Hornick gave an anti-Ford speech that wouldn't have been out of place at a campaign rally.
"Doug Ford keeps lying about his plans for the LCBO," they said. "I don't trust him, and neither should Ontarians. He said he wouldn't sell off the Greenbelt. That was a lie. His loyalty was always with his developer friends and his donors. He says that we will always access health care with our OHIP cards and not a credit card. Yet we know people who are being gouged by private clinics.
"Doug Ford said he won't sell off the LCBO, but now he's giving it away and that comes with a price tag in the billions: we say, 'Not on our watch.' Premier Ford says one thing, then does another, and he hopes that we're not paying attention, or worse, that we just won't care.
"We see the big-box Ontario that Ford is trying to build, where everything, even our health care and education will make corporations and CEOs richer. And to that, we say, 'Hell no.'"
Asked if the government is considering the union's proposal, a spokesperson for the minister of finance said the government is "committed" to expanding alcohol sales.
"It’s disappointing that OPSEU could be heading towards an unnecessary strike that threatens people’s ability to enjoy their summers," said Colin Blachar in an emailed statement. "It’s never been more clear that Ontario consumers need and deserve the same choice and convenience every other Canadian enjoys. While we hope OPSEU puts consumers first by working constructively at the negotiating table toward a deal, we have never been more committed than we are now to delivering on our promise to deliver more choice and convenience with beer, cider, wine and ready-to-drink beverages in convenience, grocery and big-box stores."
In a statement, the LCBO said the Crown corporation does not want a strike.
"OPSEU agreed to LCBO’s request for the appointment of a mediator, and we continue to meet the union at the bargaining table this week and have dates set to continue negotiations in July. Our focus remains on reaching an agreement that is fair to our unionized staff and allows the LCBO to operate effectively and efficiently for the province in a new marketplace," it said.
"Should a strike occur, LCBO has measures in place to ensure continued customer service and will provide updates to our customers and partners."
The union is in a legal strike position as of 12:01 a.m. on July 5, 2024, a date leaders said they chose so that it would not disrupt the Canada Day weekend.
