LCBO strike
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Province under fire over LCBO deal
 
Steve Erwin
Canadian Press


Wednesday, July 27, 2005
CREDIT: National Post, Peter Redman
A deal was reached on Wednesday to avert a strike by LCBO workers.



TORONTO -- Critics are questioning how far the Ontario government had to move to avoid a strike by thousands of liquor store workers that would have closed 600 stores across the province.

The LCBO board and the union representing some 5,400 employees of the Liquor Control Board of Ontario applauded a deal reached Wednesday, well ahead of a 12:01 a.m. strike Thursday deadline.

The spectre of job action had sent customers on a shopping spree in recent days, with many LCBO outlets experiencing brisk sales of wines and spirits.

However, it's unclear what role the government played in helping get a deal done.

Workers had called for a written pledge that the province would not sell the liquor agency to private sector interests who might lay off staff.

Finance Minister Greg Sorbara has repeatedly said the government won't sell the LCBO, but workers insisted that commitment be put in writing.

In announcing a tentative agreement Wednesday, the union said they were granted that request with a deal that "puts in writing the government's commitment to LCBO staff and the people of Ontario to keep the LCBO public."

Conservative leader John Tory called on Premier Dalton McGuinty to release details of any written agreement with the union, including what assurances may have been given over how the province's liquor store chain will be managed and whether any guarantees prevent changes to wring more revenue from it.

"They are missing a huge opportunity to run this public asset better and help Ontarians," Tory said. "This deal will prevent the LCBO from being better run and generating more much-needed money to pay for services."

McGuinty said he wasn't aware of any formal letter signed by his government.

"My understanding is it was all dealt with at arms' length and the parties were able to resolve this" without government intervention, McGuinty said at a community barbecue in Kitchener, Ont.

Similarly, Sorbara's office was not aware of any formal provincial commitment that was written into the tentative deal.

John Coones, chair of OPSEU's Liquor Board Employees Division, wouldn't divulge details of the agreement, but said job security provisions were met.

"What I can say is that it will be a bit more difficult in certain areas to privatize."

It could take at least two weeks to ratify the deal since workers need to vote on the agreement, as do the LCBO board and the province.

A study commissioned by the province and released earlier this month recommended the government get out of the liquor business, which generates roughly $1.5 billion annually for the province.

Opposition critics also want the government to release details of a "secret operational review" of the LCBO that suggested ways of increasing its efficiency. The review was apparently conducted recently and was referenced in the independent study released this month.

Tory charged that the Liberals are using a "peace-at-any-cost" approach to avoid public service strikes in the province.

But McGuinty boasted that his government has now reached long-term contracts with OPSEU public service workers, Ontario teachers, doctors and now, pending ratification, LCBO workers.

"Everybody's got to give a little bit, and we all benefit when that happens," he said.

LCBO spokesman Chris Layton wouldn't elaborate on what job protection measures are included in the deal, but said such protection is "less broad" than it was in the previous contract.

The earlier deal included language that prevented the LCBO from laying off full-time staff members. It also included guarantees of no layoffs of full-time staff related to the openings of any agency stores -- outlets licensed to private owners in mostly rural locations -- as well as outsourcing of warehouse work.

Regardless, it appears consumers won't have to hunt for alcohol and the premier kidded that avoiding an LCBO strike was "maybe the most important news of the summer, given the heat."

"We will not lose sight of basic human needs in my province," he joked.

 

© Canadian Press 2005