Last-minute dispute puts LCBO agreement in limbo as workers remain on strike

The champagne’s on ice, and it’s almost time for Ontario drinkers to pop the cork.
The LCBO and its workers were on the verge of signing a tentative agreement to end a two-week strike Friday night after a last-minute dispute over back-to-work protocols almost derailed the deal. Workers could still be back on the job as soon as Tuesday.
The two sides announced the agreement Friday afternoon, but hours later the LCBO threatened to file an unfair-labour-practice charge against the Ontario Public Service Employees Union after claiming the union “introduced significant new monetary demands that should have been dealt with at the bargaining table.”
The union shot back later, saying the LCBO hadn’t responded to its back-to-work proposal.
By late evening, the two sides were back at the table ironing out the fine points, and union sources said they were optimistic about reaching an agreement within hours.
Earlier, workers, the government and the hospitality industry had been celebrating news that management had signed off on an agreement in principle with OPSEU after two days of around-the-clock talks had appeared to put an end to the first strike in LCBO history.
“I am incredibly proud of the workers and their organizing efforts in order to make sure that public revenues and jobs were protected,” OPSEU president JP Hornick had said in a telephone interview with the Star.
The agreement “protects jobs in every community,” Hornick added. “Our workers made it clear all along that the premier’s ‘alcohol everywhere’ plan was a direct threat to their jobs, and public revenues.”
Finance Minister Peter Bethlenfalvy said “there is no privatization here — the LCBO is in public hands.”
The tentative deal, he said in an afternoon television interview on CP24, “is moving forward with modernization, which is something … the people want, the polling said they want, and we (won) two elections” on the changes, he added.
“This (deal) validates that we are moving forward together,” he also said, adding “it’s a fair and good deal for the workers, on the things they wanted from the beginning.”
The union capitulated on the issue of ready-to-drink cocktails going into convenience, grocery and big-box stores, but gained pay raises, as well as guarantees that an additional 600 part-time casual jobs will be converted to permanent ones. The tentative deal brings the total of permanent jobs promised to 1,000.
It also guarantees no layoffs for the term of the contract due to market changes.
The workers will now receive eight per cent pay increases over three years: three per cent in the first year followed by 2.75 per cent and 2.25 per cent.
Changes will be made to the salary grid, eliminating the lowest level to bump up the base pay of those at the bottom. The LCBO also agreed to limit the number of LCBO agency stores to 400 for the duration of the three-year contract.
News of the agreement was met with sighs of relief from restaurants and bar owners across the province.
“It’s such a relief. This was a headache that no one really needed,” said Evan Georgiades, owner of west-end bar and live-music venue the Monarch Tavern. “We can’t afford to not have the products that our customers come to the bar for.”
“We’re relieved this has come to an end. This has been stressful for our operators,” said Kelly Higginson, CEO of Restaurants Canada.
Cal Bricker, the head of Spirits Canada, which represents some of the world’s largest spirits producers, was also relieved at news of the tentative deal.
“Everybody would just like to get back to work, and meet the needs of consumers of Ontario,” said Bricker, pointing out that the LCBO was the only venue where his members could sell their products.
On Thursday as talks continued, Premier Doug Ford was firm that the province’s plans on ready-to-drink beverages “won’t be dropped.”
The strike “should never have happened, in my opinion,” Ford said.
“The front-line folks just want to get back to work. I just want to get back to normal — that’s it,” the premier told reporters. “And so do they, believe me.”
The job action came six weeks after Ford announced he will pay The Beer Store $225 million to move up the previously announced Dec. 31, 2025 deadline for expanded liberalization.
The accelerated schedule means convenience stores will be able to sell beer, wine, cider and ready to drink cocktails as of Sept. 5, while grocery stores and big-box retailers like Walmart and Costco will be able to sell them as of Oct. 31.
Under the previous Master Framework Agreement first signed by Liberal Premier Kathleen Wynne in 2015, 450 grocery stores already had the right to sell beer and wine. As of July 18, those 450 stores are now allowed to sell cases of beer, as well as ready-to-drink cocktails.
Liberal Leader Bonnie Crombie called the tentative deal good news, but said “make no mistake, this strike was entirely avoidable” and blamed the Ford government.
Ford, she added, “used the LCBO as a political pawn in his plan to give $1 billion of your money to the big grocers and international breweries,” which is the amount the Liberals have estimated as the actual cost of the fast-tracked liberalization. 
With files from Robert Benzie