The LCBO strike: What you need to know and why it might drag on | CBC News

It’s a bit harder to get a drink in Ontario right now, as roughly 9,000 unionized workers with the Liquor Control Board of Ontario (LCBO) continue a strike that started July 5.

Talks between the employees’ union and the LCBO have broken off completely, with no end to the strike in sight. 

Both sides say they are willing to restart negotiations, but there is one intractable dispute at the heart of the stalemate.

Namely, a key component of Ontario Premier Doug Ford’s plan to vastly expand where some types of alcohol can be sold in the province.

What’s the Ford government changing?

In May, Ford announced convenience stores, gas stations, big box outlets and more supermarkets will be able to start selling beer, wine, cider and ready-made cocktails later this summer.

Eventually alcoholic drinks could be available at 8,500 additional locations, giving Ontario the third-highest density of booze retailers among the provinces, behind only Newfoundland and Labrador and Quebec.

The looming changes will rapidly expand an alcohol retail landscape that’s been very slowly liberalizing in the last decade. Here are the basics of how booze is currently sold in the province:

• The government-owned LCBO sells spirits, wine, beer (in limited pack sizes) and ready-to-drink cocktails at 680 locations. The LCBO is one of the single-largest purchasers of alcohol in the world.
• The Beer Store sells, well, take a guess, and the Wine Rack, ditto.
• Since 2015, wine and beer (again, in limited pack sizes) have been sold at a growing number of grocery stores. That figure currently stands at 450 locations provincewide. On July 15, the province announced these stores would be able to start offering ready-to-drink cocktails and 12- and 24-packs of beer as of July 18.
• Breweries, wineries and craft distilleries can retail their products on site.
• Restaurants can sell alcohol with takeout and delivery orders, a measure introduced during the COVID pandemic shutdowns.

Even with the strike, Ontarians can purchase booze from the LCBO online for home delivery. The government also released an online map of places to purchase various types of alcohol during the labour strife.

The Canadian Taxpayers Federation is one group that is supporting the government’s efforts to expand where alcohol is sold.

Jay Goldberg, the Ontario director with the advocacy group that calls for lower taxes, said at a news conference Friday that all forms of alcohol should be sold in grocery stores and he sees the strike as the “perfect opportunity” to get there.

“Having more locations, more choice and more convenience means not having a government-run monopoly,” said Goldberg.

He said Ford’s move to bring wine and beer into convenience stores is “reasonable” and gives people more access.

What’s the union upset about?

The Ontario Public Service Employees Union (OPSEU), which represents the striking workers, says it is not opposed to expanding privatized booze sales, at least in principle.

But union leaders argue the province’s plan threatens the LCBO’s future as a retailer and could lead to thousands of job losses within a few years.

The LCBO generates about $2.5 billion in annual dividends for government coffers, a figure that does not include provincial taxes on alcohol. A substantial portion of that money goes back into public services, such as health care and education.

Retail outlets account for about 80 per cent of the LCBO’s gross annual revenue, with the rest coming mostly from its role as a distributor.

“The fight has always been about protecting good jobs and protecting public revenues,” OPSEU president JP Hornick said this week.

The union has also specifically focused on ready-to-drink cocktails, which it says should stay exclusive to the LCBO. Canned spirit drinks accounted for 9.1 per cent of sales from the LCBO in 2023, government figures show, and about 8.2 per cent of its total profit margin. 

OPSEU has called for the government to either reconsider that part of the expansion or make the LCBO whole for lost revenue.

Union leaders say they also proposed alternative models that would give the LCBO a larger role in the expansion of alcohol sales, such as boutique locations within large supermarkets.

They’ve alleged LCBO negotiators have refused to say how the plan will affect the LCBO’s bottom line, and how many jobs may be lost down the road.

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.

What is the Ford government saying?

Ford has unequivocally ruled out rolling back any part of his plan, saying that public policy will not be decided at the bargaining table.

During a news conference on the sixth day of the strike, he took particular aim at the union’s demands around ready-to-drink cocktails.

“If they want to negotiate over [ready-to-drink beverages], the deal’s off. I’m gonna repeat that: that ship has sailed,” Ford said.

Under the new regime, the LCBO will still offer canned spirit drinks and remain the sole retailer of high-alcohol spirits like gin and whiskey. It will also continue to be the only wholesaler and primary distributor of alcohol in the province.

The government has pointed to figures showing LCBO gross revenues have increased year-over-year since alcohol sales expanded to grocery stores, due to wholesale growth.

Ford claims to have spoken to hundreds of LCBO workers since the strike began. He said their concerns were about wages, benefits and job security, and the LCBO is willing to negotiate in good faith on those issues.

Ford has also denied union suggestions the ultimate goal is to fully privatize Ontario’s booze market.

What is the LCBO’s stance?

The LCBO says its last offer before negotiations broke down addressed the primary concerns of its workers. 

The offer included a seven per cent wage increase over three years, “increased access to benefits” and a commitment to transition 400 casual workers into permanent roles, according to the LCBO. OPSEU has said roughly 70 per cent of the LCBO’s current workforce are casual employees.

Last week, the LCBO released a statement suggesting it is confused about OPSEU’s stance on ready-to-drink cocktails. It charges that OPSEU leadership have been unclear about their top priorities for negotiations.

“If OPSEU is now prepared to agree that ready-to-drink beverages are a matter of public policy and not something that should be discussed as part of bargaining, we strongly encourage them to respond to our July 4 offer,” the statement said.

Meanwhile, LCBO also walked back its original plan to open select stores with limited hours once the strike reached the two-week mark, saying resources would be re-allocated to online sales operations.