Ford sticks to plans to expand alcohol sales as LCBO strike drags on

Ontario Premier Doug Ford announces that his government will push ahead with the further opening of alcohol retail in the province, rejecting demands from the striking LCBO workers’ union to reconsider parts of the plan.

“There is no question of deviating from the plan that we have a clear mandate from the people to implement,” Ford said at a press conference on Wednesday.

“Thousands of businesses are preparing for this exciting milestone. They have ordered refrigerators, reserved shelf space or started hiring and training new staff. I will not let those people down. We will make sure we get this done.”

Starting in late summer, retailers such as grocery stores, big box stores and convenience stores will be allowed to sell beer, wine, cider and ready-to-drink cocktails such as hard seltzers.

The Ontario Public Service Employees Union (OPSEU) says Ford’s plan poses an existential threat to the LCBO as a retailer and could result in mass layoffs.

About 9,000 union-represented LCBO workers walked off the job last Friday after negotiations on a new collective agreement failed. The LCBO then closed its more than 650 stores across the province for at least two weeks.

OPSEU is particularly upset that the LCBO will lose exclusive rights to retail ready-to-drink liquor. It has called on the government to reverse that part of the expansion or ensure the LCBO is compensated for lost revenue. The union also demanded guarantees that no jobs will be lost at the 97-year-old Crown corporation.

“We will not give in,” says union leader

At a press conference on Wednesday, Colleen MacLeod, chair of the OPSEU’s Liquor Authority Employees Division bargaining team, said the union was committed to fighting for the future of the LCBO, its job security and its public revenue.

MacLeod accused Ford of not listening to the union and interfering in the bargaining process. She said the union does not believe him when he says the LCBO has a secure future.

“The reaction from our members is that Doug is not listening … And it’s great to know that he’s trying to negotiate with our members, but he really needs to negotiate with us,” she said.

“We all need to know: How much money is going to be lost? How many jobs are likely to be lost? How safe are our jobs going forward? Will stores continue to stay open? Will our logistics facilities continue to deliver product across the province … and ensure that all the jobs at head office that support retail are not lost? We need to know that we will still be here and that we will continue to be viable.”

In a statement Wednesday, MacLeod said Ford’s expansion plan, which she called his “alcohol everywhere program,” will result in fewer jobs and less time for workers, hurt small businesses that produce alcoholic beverages and lead to a loss of public revenue from health care, education and infrastructure.

“While the premier talks about how important the LCBO is to Ontario – and how important Ontario-produced beverages are – his big box plan will unfortunately hurt the craft breweries, wineries and distilleries he mentioned,” MacLeod said.

MacLeod said the union was ready to return to the bargaining table immediately and accused the prime minister of lying about the LCBO’s offer.

“We didn’t leave the negotiating table – the LCBO told us we couldn’t come back unless we were willing to give up our core demands, which included job security and growing the LCBO to meet demand and improve user experience,” MacLeod said.

“We will not let up in our fight for a deal that protects the public revenues we invest in public services like health care and education. At the bargaining table, we asked the LCBO very clearly how much revenue they expected to lose and how many jobs could be lost, and they did not answer us.”

“This strike should never have happened,” says Ford

For his part, Ford made clear Wednesday that he had no intention of revising any part of the expansion plan, saying the union would have to drop its demands on liquor cans so negotiations could resume.

The LCBO said its last offer to the union included a seven percent wage increase over three years and the conversion of 400 casual jobs into permanent, full-time positions. Currently, about 70 percent of LCBO employees are casual workers, according to OPSEU.

“If they want to negotiate on (ready-to-drink beverages), the deal is off. I repeat: the train has left the station,” he said, adding that he had heard from LCBO employees that their priorities were wages, benefits and job security.

“This strike should never have happened,” Ford said.

WATCH HERE | Ford says he won’t back down on ready-to-drink cocktails:

Ford faces questions as LCBO strike enters sixth day

Premier Doug Ford held a news conference at an Etobicoke brewery Wednesday morning and announced that his government would not back down on plans to expand alcohol consumption as the LCBO strike enters its sixth day. Ford said “the ship has sailed” when asked if he would stop selling ready-to-drink alcohol beverages in convenience stores.

The LCBO said it did not want a strike and was still interested in reaching an agreement.

“The most constructive thing OPSEU could do would be to respond to the offer we made last week,” the LCBO said in a statement

The LCBO currently generates an annual dividend of approximately $2.5 billion for the province, a significant portion of which is spent on essential public services such as health care and education. Ready-to-drink cocktails account for approximately nine percent of the LCBO’s total annual sales.

Ford stressed that the LCBO will continue to sell ready-to-drink beverages, but will have to compete with the private retail market. Under the new regime, the LCBO will be the sole retailer of hard liquors such as gin and whisky, as well as the sole wholesaler and major distributor of alcohol in the province – including ready-to-drink cocktails.

Ford said LCBOs’ profits have increased year after year since the previous Liberal government introduced wine and beer into grocery stores.

“Remember: As a wholesaler, you make your money,” he said.

WATCH | CBC analyzes the latest developments in the LCBO strike:

“The train has left the station”: Ford brings ready-to-drink cocktails to stores in Ontario

Premier Doug Ford says he won’t back down from his plan to sell ready-to-drink cocktails in Ontario grocery and convenience stores despite the ongoing LCBO strike. The union, which represents more than 9,000 workers, argues the province’s liquor store should have the sole right to sell pre-mixed drinks. CBC’s Chris Glover has more on that.

Ford and Finance Minister Peter Bethlenfalvy have so far refused to give an exact figure as to how much the expansion of alcohol retail could damage the LCBO’s financial results in the long term.

Internal government and LCBO figures suggest that the province with a net revenue loss of 150 to 200 million US dollars per year as a result of the changes. This does not include the $225 million the government will pay to multinational breweries terminate a contract early Limiting the sale of beer and other malt beverages in Ontario, where and in what quantities.

Meanwhile, Ford and his MPs have tried to portray the ongoing strike as an opportunity for consumers to seek out local, Ontario-made products such as craft beer and cider.

On Monday, Ford released an interactive online map to help consumers find alcohol retailers near them.

This week, OPSEU members went on strike outside LCBO distribution warehouses to stop the delivery of alcohol sold online.