The LCBO has issued the following press release:
LCBO REACHES TENTATIVE AGREEMENT
WITH ITS UNIONIZED EMPLOYEES
The deal could still get voted down, but that seems unlikely.
The Lead-up
I was at the head office bunker again for a wine tasting on Tuesday, then at the mobbed Queens Quay store, and there was dark talk of a conspiracy to boost sales. An employee suggested that management would wait until 11:59 and then agree to a deal done weeks ago. Then he admitted he had no idea and would "hear about the strike vote when you do. There's a total blackout on news."
He wasn't far off: agreement to continue negotiations came at twenty minutes to midnight...
The media was out in force, recording the alcohol shopping frenzy, like this CITY TV crew at Queens Quay. I can't wait to see the final tally on Tuesday's sales figures...
Why is this Happening?
What seems on the surface like a reasonable demand from the union that the LCBO rely less on casual labour (not great for those employed in such a position) in fact means a demand for more permanent positions at a much higher rate of pay and benefits than pretty much any other retail worker can expect, so management is holding firm: "If we let our labour costs spiral out of control, people are going to ask if we're running the business efficiently," said spokesman Chris Layton.
The LCBO may be a monopoly, but management is cautious about stepping even further ahead of the Home Depot, Loblaws and Sears pay scales...
Knowing Their Limits
The tenacity of the provincial liquor boards is really quite impressive: Manitoba and British Columbia both underwent partial (many would say botched) privatization processes in the past decade or so and neither is really a free market. Alberta's 1990s privatization is not the shining example you might think - the old Liquor Board still is the "wholesaler of record" and ensures uniform wholesale prices and, over time, prices seem to have crept up. However it was popular support for the BC Liquor Board that scuppered the planned sale and the Manitoba board claims it has a 90%+ approval rating and is voted among the best employers in the province.
The LCBO is held in high regard by most Ontarians and the store upgrades and improvements of the last few years have been well received.
The main LCBO union beef - as in Quebec in 2005 - is over the number of part-time, casual and contract vs. full-time, permanent positions.
The SAQ strike lasted a full four months... over the Christmas/New Year period as well. However Quebeckers can buy beer and wine at corner stores and grocery stores. Having lived in Montreal for most of 2006, I learned that sad truth about "depanneur wine" and soon learned to avoid it. It's a limited range of not good and SAQ-controlled selectons that are bottled in Quebec and fake-branded - "Notting Hill" Australian shiraz was a particluar howler and Chilean wines have ostentatiously "latino" and "fun" branding. However it's at least available.
The LCBO might find that the Ontario public - who have a limited selection of Ontario-only wine stores and websites to choose from - not as forgiving and the privatization question could be re-opened.
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