LCBO stores could reopen Tuesday after a tentative deal is reached

Editor’s Note: This article originally appeared on The Trillium, a Village Media website dedicated exclusively to coverage of provincial politics in Queen’s Park.

A strike that shut down Ontario liquor stores for two weeks is expected to end after the LCBO and the union representing workers reached a tentative agreement.

The LCBO said in a statement Friday that the two sides had reached an agreement that could end Monday’s strike by 10,000 workers unless the agreement is ratified. LCBO stores that have been closed since July 5 could then reopen on Tuesday, it said in a statement posted on its website.

“The 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 serving Ontarians,” the statement said. “We recognize the disruption the strike has caused to our employees, partners and customers who rely on our services and thank everyone for their continued patience and understanding as we begin to resume normal operations.”

Finance Minister Peter Bethlenfalvy said in a statement that he was “satisfied” that the two sides had reached a tentative agreement 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 provide choice and convenience in Ontario.”

The Ontario Public Service Employees Union, which represented the striking workers, said details of the settlement would not be shared until they communicated 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 historic strike action, LCBO workers have reached a tentative agreement with their employer that will protect jobs in every community as well as public revenue generated by LCBO sales.”

On July 4, the LCBO submitted an offer that included annual wage increases of about two percent 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 . website.

OPSEU had a different vision. The proposal was “rife with attacks on our working conditions, wages that do not keep pace with inflation and attempts to remove barriers to privatization from our contract,” the union said in a July 8 update.

Earlier this week, the Ford government announced it would extend the date on which licensed grocery stores can start selling ready-to-drink (RTD) alcoholic beverages and large cans of beer.

Stores could sell these items starting this Thursday, nearly two weeks earlier than the originally planned date of August 1.

RTDs have been a major sticking point in the negotiations, with OPSEU wanting the government to scrap its plan to allow the drinks to be sold in more venues. The union claimed the expansion posed a huge threat to job security and the future of the provincial liquor retailer.

“Workers have explained all along – Prime Minister Ford’s alcohol-everywhere plan directly threatened jobs and public revenue,” the union said Friday. “And he forced this strike, expediting it right in the middle of negotiations.”

RTD sales accounted for nearly $700 million of the LCBO’s revenue in 2023, about nine percent of total sales, according to the provincial agency’s 2022-23 annual report. Spirits make up about 37 percent of sales, wine 31 percent, and beer about 20 percent. “Specialty services” make up the remaining three percent.

It’s also the fastest-growing offering on LCBO shelves.

In the 2022-23 fiscal year, RTD sales rose nearly seven percent, 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 led to a shift away from some of the more established types of alcoholic beverages,” the annual report said.

OPSEU representatives planned to speak to journalists on Friday at 3:00 p.m.

It follows…

-With files from Aidan Chamandy