A warning to LCBO workers: A strike might not go the way you want it to

Since the union representing LCBO workers could begin a strike as early as July 5, I thought it would be useful to briefly go through the various possible outcomes. This was to be for my own purposes only. As I’ve mentioned in previous columns, I’m not a big drinker and make do with a few beers a week, so my interest in an LCBO strike is really a matter of professional curiosity. However, the more I read about it, the more a thought began to form, and that’s why I wrote this column. I want to send a warning to LCBO workers, and this is absolutely serious: Be careful. A strike can go the way you want it to.

This is not a comment on their demands. I am agnostic on that, at least overall. LCBO workers want higher wages and a shift from part-time to permanent positions, and that seems fine and fair to me. LCBO workers’ wage increases, like those of the rest of the public sector, were capped by the now-defeated Bill 124, and then inflation hit everyone. There is nothing wrong with the union demanding wage increases that will bring workers’ compensation back to the level of purchasing power they would have enjoyed before the inflation spike or Bill 124.

On the other hand, the LCBO is demanding guarantees that the province’s continued efforts to reform alcohol sales will not put jobs in the LCBO at risk. This seems logically unreasonable to me: I don’t believe the government should guarantee jobs in the long term, and if a reformed alcohol sales system means we need a smaller LCBO, I would support that. I would also support a larger LCBO if necessary. I am not committed to a preferred outcome, nor do I believe the government should be contractually obligated to do so.

(I would add, however, that given the government’s apparent desire to pay special attention to the Beer Store to avoid job losses there, one cannot blame the LCBO workers for trying their luck, if only from a strategic point of view.)

So that’s my opinion on the workers’ demands: some I agree with, some I don’t. I understand why they are making the demands I don’t agree with, and I think they could well get what they’re asking for (or something close to it). But I still advise caution on the issue of strikes. I suspect it could be counterproductive.

As mentioned above, I spent some time trying to figure out what an LCBO strike would mean, as the alcohol distribution system in Ontario has already changed and I wasn’t sure what role the LCBO still plays (or, to be more blunt, whether people would notice an LCBO strike as much as they did, say, 10 years ago). It would take a very long time to explain all of this in detail. Alcohol distribution in this province remains complex and, if anything, is getting more complex. But here is my attempt to summarize it succinctly.

If the LCBO went on strike, LCBO outlets would of course close. Ontarians would still be able to buy beer at the Beer Store and, theoretically, grocery stores. Liquor sales would cease, as only the LCBO is allowed to sell it (exceptions apply, though, so wait and see). The LCBO also sells most wines, but there are exceptions: Ontario has the Wine Rack in grocery stores, but it is limited to Ontario wines.

This is where things start to get more complicated.

As mentioned above, there are other ways to buy alcohol that would be open during a strike. But. The LCBO also acts as an alcohol importer. Foreign beer, for example, unless produced domestically under license, will be imported through the LCBO, even if it is ultimately sold elsewhere. That would stop.

The LCBO also supplies products, usually on a just-in-time basis, to restaurants and bars (most of these businesses do not have the cash or storage space to order large quantities in advance). LCBO supplies to the food service sector could The LCBO has said it has plans to maintain customer service in the event of a strike, but has not said what those plans are, and I honestly don’t know how to judge how effective they would be in keeping local bars supplied with water, so to speak.

It gets more complicated.

What wasn’t addressed above is that Ontario has local beer producers as well as independent wineries and spirits distilleries. They can sell directly to the public. Most of these places don’t have large operations, so losing the LCBO as an importer would still limit overall supply, but local beers, wines and spirits would still be available to whoever acquires them first.

The above is general, and I have tried to be brief and precise, but thorough at the same time. I am sure that in the effort to be appropriately brevity, I have missed some nuances and details. But I trust the overall point is clear: an LCBO strike will be disruptive, but beer and wine will still be available, and even spirits, in limited quantities, if you are willing to support a local supplier. In fact, it is more possible than ever for a consumer, be it an individual or a restaurant, to bypass the LCBO and seek out local suppliers.

And it is also clearer than ever that the Ford government – ​​even if it is doing so belatedly, slowly and, frankly, bizarrely – is prepared to make major structural changes to Ontarians’ access to alcohol.

LCBO workers know this, of course. They are obviously concerned about it – they specifically said the strike would not start until the Canada Day long weekend. But that’s why they should proceed very carefully. They are threatening industrial action, which will give the customers they depend on a chance to seek alternatives and give the government a chance to consider whether those alternatives should be a bigger part of the system. And if they anger the public by disrupting summer barbecue season, the public might support or even demand those changes.

I wish the LCBO workers no ill will. As I said above, I think some of their demands are fair and I think they can probably even get some of the demands I disagree with passed. But I feel that the LCBO workers could hurt themselves and their interests here if they are not careful. I think there would be public support for big changes – changes that the LCBO may not like if said public is upset.

And we have a premier who has a proven track record of giving the public what it wants when it comes to pro-people alcohol policies. What Doug Ford thinks is good may not necessarily be what LCBO staff think is good.