LCBO no longer plans to open 32 stores in light of ongoing strike

Ontario’s largest liquor retailer announced Sunday that it had abandoned plans to open some stores for in-store shopping amid an ongoing strike by thousands of its employees.

The Ontario Liquor Control Board had previously said it planned to open 32 stores with limited hours three days a week if the strike by members of the Ontario Public Service Employees Union lasted longer than two weeks.

LCBO workers represented by OPSEU went on strike on July 5 after negotiations failed.

The LCBO said it has been able to serve its retail customers online since the strike began and deliver orders within a week.

“Based on this success and our confidence in our ability to continue to serve retail customers online, we will be redeploying staff scheduled to serve in-store when LCBO retail stores opened to other areas of operation to further enhance support for bars, restaurants and other businesses,” the organization said in a news release on Sunday.

Hours after the announcement, Restaurants Canada issued a statement telling its members they were reassured by the news that “limited resources are now being directed toward securing vulnerable businesses.”

The association said restaurants and bars have found the items they need either out of stock or in limited supply. It said the industry is in a “critical period” of increasing demand from businesses and called on the government and the LCBO to prioritize resources for restaurants and bars.

OPSEU, which represents about 10,000 LCBO workers, said the strike is clearly having an impact.

“A key reason strikes work is that they disrupt the world of work,” the union said in a statement on Sunday.

“Without LCBO workers, the LCBO does not function.”

The union had previously said it was fighting for the future of the LCBO and Ontario, and had repeatedly criticized Premier Doug Ford’s plans to open up the province’s alcohol market by allowing the sale of ready-to-drink cocktails outside LCBO stores.

The Ontario Liquor and Gaming Commission said it has issued alcohol sales licences to 3,105 convenience stores and 37 new grocery stores as part of the government’s plans to expand alcohol sales. Newly licensed convenience stores can begin selling alcohol in early September, while newly licensed grocery stores can do so starting Oct. 31.

The union said the plan posed an existential threat to the LCBO and could result in significant job losses.

“If these products are introduced into new private retail outlets (such as gas stations and convenience stores), it will mean fewer working hours, fewer jobs and lower public revenues for us,” the union said in its July 11 press release.

The union said Friday that the employer was refusing to negotiate, accusing Ford of forcing the strike to advance an agenda that would further open up the alcohol market and break up the LCBO for corporate profits.

Ford stated that the issue was not a negotiating item, while the LCBO stated that it was a matter of public policy and should not be discussed as part of the negotiations.

In its statement Sunday, the LCBO said it wanted to end the strike and was committed to reaching an agreement, adding that it was ready to return to the bargaining table “as soon as it is clear to us that Ford and the LCBO are willing to negotiate in good faith.”

Some groups have expressed support for Ford’s plan, including an association representing 12 local Ontario producers.

Natasha Fritzley, chair of the Ontario Craft RTD Coalition, said in a statement Sunday that the ready-to-drink industry is growing in the province, but because these beverages, unlike beer and wine, are only allowed to be sold at the LCBO, it is difficult to “get their products into the hands of consumers,” she said.

“By allowing RTDs to be sold in grocery and convenience stores, we are providing small Ontario businesses like ours with an opportunity to reach our consumers, grow our business and create more jobs in communities across the province,” Fritzley said.

This report by The Canadian Press was first published July 14, 2024.

Rosa Saba, The Canadian Press