If LCBO workers go on strike, Ontario residents can live without them: Denley

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Thank God Ontario’s courageous LCBO workers are willing to stand up and defend the province’s vital public services, even if they have to go on strike to do so.

“We cannot stand by and watch Doug Ford give away LCBO revenues to the CEOs of large supermarket chains and convenience stores. Premier Ford and the LCBO must ensure that public services and good jobs are not left behind,” union leader Colleen MacLeod said on Tuesday.

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MacLeod is chair of the alcohol committees section of the Ontario Public Service Employees Union (OPSEU), so protecting good jobs is definitely her job, but the public service is less so.

Unless Premier Ford’s plan to expand alcohol offerings to more retail stores makes Ontarians thirstier, it’s not hard to imagine that more sales elsewhere will potentially reduce the number of LCBO jobs. This does not obligate the LCBO and its owner, the provincial government, to protect every job at the LCBO.

The union wants more permanent employees and fewer casual workers, the opposite of what the LCBO needs in a changing and uncertain retail environment. And then there’s the question of money. The union has not said how much the raise will be. Using the collective bargaining agreement recently negotiated with Ontario teachers as a guide, OPSEU could expect 2.5 to 3 per cent per year.

Anything more would be difficult to justify. Higher wages at the LCBO mean either less money for these valuable public services, higher prices for consumers, or both.

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When you work for a goldmine like the LCBO, you’d expect more balls, but LCBO employees are already well paid compared to others doing the same type of work. The LCBO says it employs 7,200 customer service representatives, who make up 81 percent of the unionized workforce. A full-time employee earns an average of $31.46 an hour; three-quarters of them earn the highest hourly wage of $32.58. The average casual worker earns $22.59 an hour. By contrast, jobs website indeed.com reports that the average wage for a Loblaw cashier in Ontario is $17.39 an hour.

Speaking of Loblaw: OPSEU believes it pursued a promising tactic by attacking Galen Weston, the former CEO and current chairman of the food giant.

OPSEU President JP Hornick said this week: “Ontarians have a choice. We cannot allow Doug Ford to hand over the alcohol market to big grocers and convenience chains like Loblaws and Circle K. We have already seen enough of them gouging out groceries and convenience items. We don’t need higher alcohol prices too. We cannot allow CEOs like Galen Weston to win big while the rest of us in Ontario lose. We can and will fight for the LCBO and strong public services.”

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Federal NDP Leader Jagmeet Singh will no doubt be pleased to have a backer for his one-man campaign against Weston, but when it comes to price gouging, the grocer can’t hold a candle to the LCBO. The government-owned liquor store had revenue of $7.4 billion in 2022-23 and paid the government a dividend of nearly $2.6 billion, almost a third of all revenue. Loblaw had a net profit of 3.4 per cent in 2023 and pays a dividend of 1.3 per cent.

The union’s threat to strike as early as July 5 is a strategic mistake that will hurt its members more than the public. Grocery stores that already sell beer and wine will be allowed to sell 24-pack cases of beer starting August 1. Convenience stores can start selling beer, cider and wine as early as September 5. The Beer Store will remain open as usual.

Ontario residents will have many alternatives besides the LCBO, unless they need hard liquor and didn’t stock up before the strike. Even then, the LCBO plans to continue its wholesale and retail business with other workers.

A strike does not seem like a wise decision. If the LCBO stays open, workers have little power. And a prolonged strike would only drive LCBO customers to other retailers, jeopardizing the jobs and public services that OPSEU cares about so much.

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LCBO public sector workers face a reality that is true for most people in the private sector: their jobs depend on the success of their employer, which in turn is largely determined by consumers.

Although the LCBO still controls all wholesale alcohol sales, its retail monopoly is being weakened. This is the first step towards real competition and a normal market. LCBO workers fear competition because the power of public sector unions depends on government monopolies. This situation cannot change fast enough.

Randall Denley is a journalist based in Ottawa.

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