Ford digs in on booze sales expansion plan as LCBO strike drags on

Ontario Premier Doug Ford sayshis government will move forward with further openingthe alcohol retail market in the province, shutting downdemands from the union representing striking LCBO workers to reconsider parts of the plan.

"Rolling back from the plan that we have a clear mandate from the people to implement isn't up for discussion," Ford said at a news conference Wednesday.

"Thousands of businesses are preparing for this exciting milestone. They've ordered fridges, dedicated shelf space, or started to hire and train new staff. I'm not going to let those folks down. We're going to make sure we get this done."

Beginning later this summer, retailers like grocery, big box and convenience stores will be able to sell beer, wine, cider and ready-to-drink cocktails such as hard seltzers.

The Ontario Public Service Employees Union (OPSEU) says that Ford's plan could posean existential threat to the LCBOas a retailer and result in mass layoffs.

Some 9,000 LCBO workers represented by the union walked off the job last Friday after negotiations for a new collective agreement fell apart. The LCBO then shuttered its more than 650 stores across the province for at least two weeks.

OPSEU has taken particular issue with the LCBO losing exclusive rights to retail ready-to-drink spirit beverages. It has demanded the government walk back that part of the expansionor ensure the LCBO is made whole for the lost revenue. The union has also asked for guarantees that no jobs will be lost at the 97-year-old Crown corporation.

Ford made it clear Wednesday he has no intention of revising any part of the expansion plan. He said the union needs to drop its demands around canned spirit drinksfor bargainingto resume.

WATCH | Ford says he won't budge on ready-to-drink cocktails:

Ford faces questions as LCBO strike enters 6th day

2 months ago

Duration 1:52

Premier Doug Ford held a news conference at an Etobicoke brewery on Wednesday morning, announcing that his government wont pull back on alcohol expansion plans as the LCBO strike enters its 6th day. Ford said that ship has sailed when asked whether he would reverse course on selling ready-made alcoholic beverages in convenience stores.

The LCBO said its last offer to the union included a seven per cent wage increase over three years and the conversion of 400 casual jobs into permanent, full-time roles. Currently, about 70 per cent of the LCBO's employees are casual, according to OPSEU.

"If they want to negotiate over [ready-to-drink beverages], the deal's off. I'm gonna repeat that:that ship has sailed," he said, adding that he has heard from LCBO workers their priorities are about wages, benefits and job security.

"This strike should have never, ever happened," Ford said.

Union not backing down,leader says

Colleen MacLeod,chair of OPSEU's liquor board employees division bargaining team, said Wednesday the union iscommitted to fighting for the LCBO's future, job security and public revenues.

MacLeodaccusedFord ofnot listening to the union andofinterfering with the bargaining process. She saidthe union doesn't believe him when he says the LCBO has a secure future.

"We all need to hear: How much money is going tobe lost?How many jobs do we expect to lose? Where will our job security be in the future? Will stores continue to stay open?" MacLeod said.

"We need to know that we will still be here and we're going to continue to be viable."

MacLeod said the union is willing to return to the bargaining table immediately, and she accused the premier of lying about the LCBO'slastoffer before talks broke down.

"We didn't walk away from the table the LCBO told us not to come back unless we were willing to give up on our core demands that included job security and growing the LCBO to meet demand and improve convenience," MacLeod said.

"At the bargaining table we asked the LCBO very clearly how much revenue they expect to lose, and how many jobs could be lost, and they refused to answer."

The LCBO currently generates a roughly $2.5 billion annual revenue dividend for the province, a substantial portion of which is spent on key public services like health care and education. Ready-to-drink cocktails account for about nine per cent of all yearly sales from the LCBO.

Ford stressed the LCBO will continue selling ready-to-drink offerings, but it will need to compete with the private retail market. Under the new regime, the LCBO will be the only retailer of high-alcohol spirits like gin and whisky, as well as the only wholesaler and primary distributor of alcohol in the province including for ready-to-drink cocktails.

Ford said that since the previous Liberal government introduced wine and beer into grocery stores, LCBO profits have increased year over year.

"Keep in mind when, when you're the wholesaler, that's where you make money," he said.

WATCH | CBC breaks down the latest LCBO strike developments:

That ship has sailed: Ford moves ahead with ready-to-drink cocktails in Ontario stores

2 months ago

Duration 5:49

Premier Doug Ford says he will not back down on his plan of selling ready-to-drink cocktails at grocery and convenience stores in Ontario, despite the ongoing LCBO strike. The union representing more than 9,000 workers argued the provincial liquor store should have the exclusive right to sell pre-mixed drinks. CBCs Chris Glover has more.

Ford and Finance Minister Peter Bethlenfalvyhave been reluctant to put a figure on exactly how much the alcohol retail expansion could hurt the LCBO's bottom line in the long run.

Internal government and LCBO figures estimate the province is facing a net revenue loss of $150 to $200 million per year as a result of the changes. That does not include the $225 million the government will pay to multinational brewing companiesto prematurely end an agreementlimiting where, and in what quantities, beer and other malt beverages can be sold in Ontario.

In a statement, the LCBO said it did not want a strike and remains committed to reaching a deal.

"The most constructive thing OPSEU could do is respond to the offer we tabled last week," the statement said.

Meanwhile, Ford and his MPPs have attempted to paint the ongoing strike as opportunity for consumers to seek out local, Ontario-made products like craft beer and ciders.

On Monday, Ford rolled out an interactive online map to help consumers find booze retailers in their area.

This week, OPSEUmembers have been picketing at LCBO distribution warehouses in an attempt to disrupt deliveries of online alcohol sales.