Tentative LCBO Deal Collapses Within Hours of Announcement

The LCBO logo is illuminated on the wall of a store in Ottawa on March 30, 2021. (The Canadian Press/Adrian Wyld)

A tentative agreement to end the two-week Liquor Control Board of Ontario (LCBO) employees strike fell apart just hours after being announced by the LCBO.

A deal with the union representing LCBO workers was announced in a July 19 LCBO press release that set July 22 for an anticipated end to the strike.

However, the LCBO later said the Ontario Public Service Employees Union (OPSEU) introduced “significant new monetary demands,” which it called bad faith bargaining.

OPSEU said the proposal it put forward was a back-to-work plan, not part of the agreement.

“What we did was tabled a standard Return to Work protocol that we use to settle the past three strikes that we have seen in our union,” OPSEU president JP Hornick said during a July 19 press conference.

The union had expected the LCBO to put forward an alternative offer, Ms. Hornick said.

“All we need to see from the employer is a counterproposal on paper so that we can respond to it appropriately as we would any other employer.”

The LCBO had announced the tentative deal would allow stores to reopen for in-store shopping as early as July 23, pending ratification of the deal, which was reached with the help of a mediator.

“LCBO is now working to prepare our people and operations to return to business as usual,“ the Crown agency said in its first press release. ”More information will be shared shortly. ”

OPSEU, which represents the province’s more than 9,000 liquor store employees, had criticized the government’s decision to allow the sale of ready-to-drink beverages in convenience, grocery, and big box stores.

In a July 19 X post, the union said, “Workers went on strike to protect good jobs and LCBO revenues supporting public services—this agreement just does that.”

Settlement details were to be presented to workers on July 19 before being made public, the union said.

LCBO employees walked off the job July 5, closing 669 locations across Ontario after talks between the union and the province stalled the day prior.

While the union said the province’s phased expansion of alcohol sales was harmful to the LCBO and could threaten thousands of jobs, the province described the move as one of public policy.

Ten days into the strike, the government announced it would allow convenience and grocery stores to start selling the drinks earlier than expected.

“Licensed grocery stores will be able to order ready-to-drink beverages and large beer pack sizes starting Thursday, July 18, 2024, and begin selling them immediately upon arrival,” a government news release said.

The move allows 450 grocery stores to sell beer, cider, and wine before the previously announced date of Aug. 1.

“Our government is keeping our promise to give people in Ontario choice and convenience while supporting Ontario-made beverage producers across the province, including the Ontario businesses that produce more than 80 per cent of the ready-to-drink beverages sold here in our province,” Finance Minister Peter Bethlenfalvy said in the press release.

Jennifer Cowan contributed to this article.