LCBO strike latest: Tourism industry struggling as convenience store applications pour in

Tensions between the Ford government and the union representing more than 9,000 LCBO workers continue to rise as the provincial liquor store strike enters its 12th day.

Government-run LCBO stores across Ontario have been closed since July 5, when unionized workers went on strike, mainly over the province’s decision to allow corner and grocery stores to sell pre-mixed alcohol drinks.

Bargaining has not resumed since the strike began and, as both sides raise their rhetoric, Ontario’s tourism industry association says it fears profits during peak season could be ruined.

On Tuesday, the LCBO launched a television and newspaper advertising blitz, apologizing to customers for the strike and urging the Ontario Public Service Employees Union (OPSEU) to return to the table to negotiate.

The public relations campaign follows a decision by the Ford government to accelerate the timetable for its controversial liberalization of alcohol sales.

Instead of allowing the 450 grocery stores that already hold an alcohol licence to sell multi-packs of beer and pre-made drinks from Aug. 1, stores have been told they can begin ordering the drinks on Thursday and sell them to customers the moment they arrive.

OPSEU accused Ontario Premier Doug Ford of firing a strike to “push his alcohol-everywhere agenda” and “dismantle” the LCBO.

“Instead of bargaining in good faith with the union and revisiting public policy that’s flat-out bad for Ontario, Doug Ford is only focused on pushing his harmful agenda – he can’t be trusted,” said Colleen MacLeod, chair of the Bargaining Team.

The union’s key contention is that opening thousands of new licensed places to sell alcohol — as the government plans to do over the coming months — will inevitably lead to LCBO store closures and losses.

“Ford’s plan will put alcohol in upwards of 8,500 new private retailers,” MacLeod said. “Every dollar in profit that they make is a dollar that should have been invested into our communities.”

Despite the union’s demands, the application process for convenience and grocery stores to begin selling wine, beer and pre-mixed drinks between Sept. 5 and Oct. 31, depending on the type of store, is already underway.

A government spokesperson said that, as of July 12, 3,071 new convenience store licences had already been issued, along with 38 new grocery stores.

The majority of convenience store licences are to locations that already have the ability to sell lottery tickets or other licences and were fast-tracked through the vetting process as a result.

“Most of the licences issued to date have been to businesses that already hold a lottery retailer, liquor sales, or grocery store licence,” a spokesperson said.

“As such, they have already been vetted for eligibility and compliance (i.e. their ability to act with honesty, integrity and in accordance with the law) and will therefore usually receive their new licence in a matter of days.”

While the government speeds up its plans to expand the number of places where people can buy alcohol, however, businesses that rely on the LCBO as a wholesaler are struggling.

Through the strike, the Crown corporation has said it will continue to fulfil orders from bars, restaurants and other groups it provides wholesale products to. Over the weekend, the LCBO even cancelled plans to re-open some stores on limited hours to concentrate on stocking bars and restaurants, which it suggested had become more challenging.

Andrew Siegwart, president and CEO of the Tourism Industry Association of Ontario, told Global News his members were already struggling with the impacts of the strike.

“Businesses that offer alcoholic beverages, certainly they’re experiencing limited product availability, so the ability to offer what they would normally sell, slow fulfilment and delivery times, not getting the stock fast enough, and then the restocking capacity is really quite below,” he said.

“They’re finding themselves not able to offer the beverages they normally would that customers are looking for.”

Siegwart said that places offering experiences — especially hunting and fishing in northern Ontario — were struggling to restock the drinks their customers order or most want as part of their packages.

Many tourism businesses are “dependent” on the LCBO for distribution, he said, and are struggling with the strike coming at the height of summer, their peak season.

The summer months are “make or break” for tourism outfits, Siegwart said, with a dip in revenue during July or August possibly impossible to recover later on in the year.

“The restaurant sector, the tourism sector, everyone is meeting on a regular basis to propose solutions,” he said.

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