Editor's note: This article originally appeared on The Trillium, a Village Media website devoted exclusively to covering provincial politics at Queen’s Park.
A strike that shuttered liquor stores across Ontario for two weeks is expected to end after the LCBO and the union representing its workers reached a tentative deal.
The LCBO said in a statement Friday that the two sides had struck an agreement that could end 10,000 workers’ strike on Monday, pending ratification of the agreement. LCBO stores that have been closed since July 5 could then reopen on Tuesday, it said in a statement posted to its website.
“LCBO is now working to prepare our people and operations to return to business as usual,” the Crown corporation said.
“We look forward to welcoming our unionized employees back to work in service of Ontarians,” the statement said. “We recognize the disruption the strike caused for our employees, partners, and customers who rely on our services, and we thank everyone for their continued patience and understanding as we begin resuming regular operations.”
Finance Minister Peter Bethlenfalvy said in a statement that he was “pleased” the two sides had reached a tentative deal to end the strike.
“This is a good deal for workers and welcome news for Ontarians,” he said. “We look forward to working together to deliver choice and convenience across Ontario.”
The Ontario Public Service Employees Union, which represented the striking workers, said details of the deal wouldn’t be shared until it communicates with members.
“The union is confident this agreement addresses the needs of workers and is a win for all Ontarians,” the union said in a statement. “After two weeks of a historic strike, LCBO workers have reached a tentative settlement with the employer that will protect jobs in every community as well as public revenues generated by LCBO sales.”
On July 4, the LCBO put forward an offer that included annual wage increases of around two per cent for three years, converting 400 casual employees to full-time and more benefits for part-time employees, according to a document posted on the crown corporation's website.
OPSEU took a different view. The proposal was "filled with attacks on our working conditions, wages that don’t come close to meeting inflation, and attempts to remove barriers to privatization in our contract," the union said in a July 8 update.
Earlier this week the Ford government announced it was moving up the date licensed grocery stores would be allowed to start selling ready-to-drink (RTDs) alcoholic beverages and large cases of beer.
Stores could sell these items as of this Thursday, nearly two weeks earlier than the originally planned Aug. 1 date.
RTDs were a major sticking point in the negotiations, with OPSEU wanting the government to cancel its plan to allow these beverages to be sold in more locations. The union argued that the expansion represented a huge threat to job security and the future of the provincial alcohol retailer.
“The workers have made it clear all along – Premier Ford’s alcohol everywhere plan directly threatened jobs and public revenues,” the union said on Friday. “And he forced this strike by fast-tracking it right in the middle of bargaining.”
RTD sales accounted for nearly $700 million of LCBO revenues in 2023, around nine per cent of total sales, according to the provincial agency's 2022-23 annual report. Spirits account for about 37 per cent of sales, wine 31 per cent, and beer about 20 per cent. "Specialty services" make up the remaining three per cent.
It's also the fastest-growing offering on LCBO shelves.
In fiscal year 2022-23, RTD sales grew by nearly seven per cent, or just over $40 million, according to the annual report.
RTD "has been one of the fastest growing and most popular product categories in recent years. Consumer preferences for these beverages have resulted in a shift away from some of the more established alcoholic drink types," the annual report said.
OPSEU representatives were planning to speak to journalists on Friday at 3 p.m.
More to come…
-With files from Aidan Chamandy
