The LCBO has committed to keeping 680 of its retail locations open until 2027 and will launch a task force to examine the impacts of the Ford government’s access-to-alcohol policies on the revenues of the Crown corporation, Global News has learned.
In the final days of the two-week-long strike, the LCBO agreed to three key items aimed at alleviating the union’s concerns over the thousands of new retail locations — such as convenience stores and grocery stores — set to come online after Sept. 5.
The strike officially ended after thousands of Ontario Public Service Employees Union (OPSEU) workers ratified a new agreement on Sunday allowing LCBO stores to reopen to the public on July 23.
While the details of the deal have not been publicized, Global News obtained a memorandum of settlement that was signed by both sides on Friday and includes three letters of agreement detailing with market modernization, store closures and full-time jobs.
Market modernization task force
While the Ford government refused to negotiate its position on allowing convenience stores to sell ready-to-drink beverages, the LCBO agreed to create a new task force with the union to review the government’s modernization policy and look into opening new stores or pop-up locations.
According to a letter of agreement, the LCBO and OPSEU will create a joint task force “to explore innovative business models that may improve LCBO competitiveness” which could include opening stores in new markets or even pop-up liquor stores run by LCBO workers.
The agreement notes, however, that the task force will only be able to make “non-binding recommendations that fall within the scope of LCBO operations.”
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Colleen MacLeod, one of OPSEU’s representatives at the bargaining table, views the task force as a significant win for the union, giving its members access to information it would not have otherwise had.
“This gives us the chance to get data to find out the impact to our stores and they’ll have to provide that information to us with this taskforce,” MacLeod told Global News.
“That’s what this was about,” MacLeod added. “To get them to commit to having these discussions.”
The agreement states that the task force will hold its first meeting in three months.
No store closures
The new contract also looked to dial down the union’s concerns over potential LCBO store closures, after the Ford government indicated that up to 8,500 convenience and grocery stores could soon be offering customers access to retail alcohol.
While the agreement states that LCBO management would still retain “unfettered” control over store closures, the Crown agency agreed to avoid shuttering retail locations that have been impacted by provincial policy.
“The LCBO commits that there will be no closures of the current 680 stores as a result of marketplace modernization until March 31, 2027,” the agreement states.
MacLeod told Global News the union can monitor the impact of external sales of alcohol by looking at the sales patterns and would use that data to push back on potential store closures.
MacLeod said that locations with structural issues and safety hazards could still close and the union agreed that management has the right to make the decision.
On Monday, Premier Doug Ford suggested that he was not interested in reducing the footprint of the LCBO and instead the government has plans to open new stores.
Ford said the province was looking at opening a new LCBO location in St. Thomas to service the incoming workforce for the new Volkswagen battery manufacturing gigafactory and suggested that consumers would likely pick the provincial liquor store over a convenience store for ready-to-drink beverages.
Ford, however, also reiterated his belief that the “market will dictate” the success of the LCBO.
More job security
As he touted the deal, Premier Ford said LCBO employees would receive a salary increase, more job security and a greater share of its workforce would be converted to full-time employment.
According to the agreement, at least 30 per cent of the LCBO’s workforce will be permanent, full-time employees while at least 12.5 per cent of jobs will be performed by permanent part-time employees.
Between October 2024 and May 2025, the LCBO will convert 1,000 casual workers into permanent full-time workers, the agreement said, up from the initial 400 the Crown corporation had proposed.
The union called it a “massive win” and said permanent part-time jobs at the LCBO “nearly went extinct.”
“The employer has continuously casualized the workforce, so that people wouldn’t get guaranteed hours, benefits or any hope of permanent work. Permanent part-time nearly went extinct,” MacLeod said. “I am beyond proud that we fought back and won these permanent jobs.”
Ford, who stressed the job security element of the deal, said the two sides worked together to “save 9,000 jobs.”