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Ontario wineries, bottle shops ramp up for looming strike at LCBO stores

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By Rick VanSickle

LCBO workers, who could very well walk off the job on July 5, are forcing many Ontario wineries that depend on the government monopoly for a significant portion of their sales, to up their game.

The union, which represents approximately 10,000 LCBO workers, requested a no-board report from the Ontario Ministry of Labour last week, starting a countdown to a strike on July 5 at 12:01 a.m.

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“We chose this date because we did not want to impact the first long weekend of the summer,” Liquor Board Employees Division bargaining team chair Colleen MacLeod said at a news conference. “Let’s make this clear. LCBO employees also do not want a dry Ontario for the summer.”

If no deal is reached in the eight bargaining dates scheduled before July 5, the union said it will go on strike. This comes after 97% of LCBO employees voted overwhelmingly in favour of a mandate to walk off the job.

Until now, there has never been a strike at the LCBO and both sides hope that can be avoided. In 2005, 2009 and 2013, liquor board employees voted in favour of work stoppages, but in all instances the two sides reached agreement before the strikes came into effect.

Paul Speck (above), president of Henry of Pelham Estate Winery in Niagara, which sells 60% of its wines through LCBO, said this strike threat feels more dire. “This situation comes around every couple of years as the union renegotiates its contract with the LCBO,” he told Wines in Niagara. “They always seem to threaten to strike and in the past, they have made a deal avoiding any disruption. This year appears to be more acute due to the Ford administration upping the timeline on retail modernization, so the union is very concerned about job safety, losses and closures. All that to say we may be in for a strike.”

Speck says a strike would be “incredibly disruptive” as the LCBO is its biggest customer. “I understand, as in past years, LCBO management has a plan to move from the offices to the key stores to keep them open.” In preparation, Henry of Pelham has an updated online presence and website store with the “ability to ship wines directly to customers’ homes in a very efficient, cheap and reliant manner;  it proved to be very successful through the COVID period.”

Speck said they will be leaning on that as well as their on-site store and presence through grocery stores, which will remain unaffected should a strike occur. Any new store openings, he said, such as more grocery and convenience stores, will also be an opportunity for us depending on the timing of the strike.

“It is a significantly changing market and disruptive time for everyone in the industry from growers, retailers and wineries, so we have our eyes wide open as will need to adapt to a new business environment that has been thrust on us unexpectedly soon,” said Speck. “Having said that, I am very confident in our team at Henry of Pelham, and we are actually looking forward to the new opportunities in the market that this brings us. I will definitely not be retiring any time soon.”

The primary point of contention between the Crown monopoly and LCBO employees is the Ford government’s expansion of alcohol sales. “I firmly believe that the government is the one who is directing our employer on how to bargain,” MacLeod said. OPSEU is also seeking wage increases that keep up with inflation. Currently, LCBO wages start at $17.65 and go up to about $30 per hour.

In contrast, 728 managers and executives at the LCBO made it to the 2023 “Sunshine List” of employees making over $100,000 a year, which includes store managers and all the way up to CEO George Soleas’s salary of $567,800. The sum of all employees and positions at the LCBO on the Sunshine List comes to a whopping $91.5 million.

MacLeod said that with 70% of its workforce employed part-time, more full-time jobs is also a priority in negotiations.

OPSEU President JP Hornick said the union has put forward an alternative plan to the Ford government’s, which would allow for the expansion and convenience of alcohol sales while protecting good jobs and public profits. No details of the alternative plan were revealed.

“If the government doesn’t want a hot dry summer, then they need to look at the alternative plan that keeps the convenience that doesn’t roll back on expansion, but just makes sure that it is done in a way that is responsible that protects public money,” Hornick said.

Richard Linley, president of Ontario Craft Wineries, calls the LCBO an important channel for local wineries, with over $150 million in Ontario VQA wine sales just last year. “We know that LCBO management and the union are back at the negotiating table this week,” he told Wines in Niagara. “We’re hopeful that they can come to a resolution prior to the July deadline. In the event of a strike, Ontario wineries will remain open for direct sales and shipments to our customers and licensee partners.”

Chair of OCW, Carolyn Hurst, concurs. “Ontario Craft Wineries are open for business,” she said. “Ontario consumers can buy direct from Ontario wineries onsite at our beautiful winery locations or they can order online for delivery to their home or cottage, with many local wineries waiving shipping fees.” She also mentioned that consumers can pick up local wines at Farmers Markets around the province.

Meanwhile, Vineland Estates winemaker Brian Schmidt has some concerns for Ontario wines if a strike is held. “The LCBO represents a significant volume of VQA wine sold. A strike will have devastating consequences for Ontario Wineries especially at a time when we have not seen any increases in the market share of VQA wines sold through the LCBO In a decade or more,” he said.

“Vineland Estates Winery will continue to focus on connecting with our customers in meaningful ways,” Schmidt said. “Just as we did during the pandemic, we will enhance our online presence. Our Wine Club family is always a focus, and we will ensure they are well taken care of. I do think that visiting your favourite Ontario Winery to buy the VQA you love is the best way to show support for Ontario Wine.”

Arterra Wines Canada’s VP of corporate affairs, Del Rollo, said his company is less susceptible to a lasting LCBO strike. Arterra and other large wine companies such as Andrew Peller and Magnotta, operate 264 stores across the province that won’t be impacted by a strike. These stores sell both VQA and International Domestic Blend wines. “Wine Rack and winerack.com will be ready to meet the increased demands during a potential LCBO strike,” said Rollo. “We will also be prepared to work with the LCBO and the government to ensure our domestic wines are readily available during this challenging time.”

An LCBO spokesperson would not comment to Global News on how a strike would impact its delivery network to bars and restaurants. Nor would it explain what contingencies, if any, were being worked out. “Should a strike occur, LCBO has measures in place to ensure continued customer service,” the spokesperson told Global.

The Global report also said that some booze can be bought in other ways, but the LCBO is the only source of liquor and the main source of wine. Local Ontario wineries can deliver directly to restaurants, he said, while The Beer Store and individual breweries would also still be able to supply them.

One segment of the local winery community, the fledgling bottle shop network, is preparing for increased sales should a strike occur.

Robbie Raskin, owner of two Archives Wine and Spirit Merchants bottle shops in St. Catharines, told Wines in Niagara he’s been planning for it and has a couple of wineries and breweries on standby in case he has to place some large orders.

“I’ve opened up a line of credit in case there’s a need to lay out some serious cash for stocking up,” he said. “In the last week, I’ve also trained a number of local bar staff on the shops’ systems in case we need extra labour for seven-day operations. Unfortunately, we can’t really pull the trigger on any preparations until we know the strike will happen. But we’re trying to be as ready as possible in the meantime.”

He calls the strike a huge opportunity for bottle shops, local restaurants, and local wine producers. “It seems like alcohol sales globally have been soft this spring, so this would be a huge boost,” said Raskin. “It would also be a real opportunity for Ontarians to discover bottle shops and learn that there are options beyond the monopoly these days.”

The post Ontario wineries, bottle shops ramp up for looming strike at LCBO stores appeared first on Wines In Niagara.


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