LILLEY: LCBO strike all about political ambitions of union leaders
Union wants to force Premier Ford to back down on plans to expand booze sales in Ontario.
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In the days leading up to the LCBO strike that kicked off Friday, in-store sales were off the charts.
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LILLEY: LCBO strike all about political ambitions of union leaders Back to video
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Summer is normally a busy time for Ontario’s government-owned liquor stores, but sales equaling Christmas numbers aren’t normal for an average weekday in early July.
That’s the kind of sales volumes being rung through the tills in the days leading up to the strike. Meanwhile, on Saturday, online sales continued to be at above normal levels with the LCBO’s website warning of high volumes and delayed delivery times.
For the average consumer, this strike isn’t going to have a big impact in the short term. Between those who stocked up, the availability of booze at The Beer Store, The Wine Rack, and purchases from local beer, wine and spirits makers, it might be some time before average folks notice anything.
The same can’t be said for the bar and restaurant industry, which is clearly worried about keeping customers happy.
Many operators stocked up on additional supplies before the strike, but there is limited space for additional inventory. The LCBO has tried to assure the hospitality industry that there will be access to supplies including delivery or pick-up options, but the industry is skeptical.
There has never been a strike at the LCBO. They’ve never had to put a plan in place for this kind of disruption let alone execute it.
Ahead of the strike the LCBO did their own stocking up, ensuring additional supplies of their 128 most popular products. They are also working to ensure the website shows wholesale customers like those in the hospitality industry, only the products that are in stock.
One industry executive said that supplies of the most popular products should be good for the next while, but more obscure products could be a problem. That might mean that your favourite whiskey, gin, vodka or tequila will be in stock but the extra ingredients for an obscure cocktail might run dry.
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The union says they aren’t fighting the expansion of beer and wine into more grocery stores or into convenience stores. Union president JP Hornick admitted that Premier Doug Ford ran on two elections and won on that front.
The sticking point for the union is the addition of ready to drink products. Those would be cocktails in a can, a Caesar in a can or seltzers like White Claw, Neutrl or Vizzy, which are becoming increasingly popular.
To the OPSEU members who are out on strike, they’ve been convinced by their union bosses that allowing the spirit-based versions of these drinks to be sold anywhere but the LCBO will result in thousands of jobs being lost.
The truth is, Ontario has been expanding the sale of alcohol in the province for years and the LCBO and the revenue it provides to the government has only increased.
In 2016-17, the first year of full expansion into grocery by the former Kathleen Wynne government, the dividend paid to the Ontario treasury was $1.98 billion. Last year the amount was $2.58 billion, which is not only a larger figure, but it also beats the rate of inflation according to the Bank of Canada Inflation Calculator.
Expanding alcohol sales has not hurt the LCBO.
What will hurt the LCBO is the union going on an extended strike aimed at getting the Ford government to reverse course on their policy of expanding alcohol sales. There is no doubt that the union leadership, especially Hornick, are philosophically opposed to the Ford government.
Hornick has a socialist vision of how the province should be run, but most people in Ontario don’t share that vision. That’s why, presented with three parties running on platforms with varying degrees of socialism in their platform, voters chose Ford’s PCs.
The same would happen if an election were held today.
The LCBO workers out on strike now have been told they are walking the picket line to protect their jobs when, in fact, they may be hastening their demise.
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