The Liquor Control Board of Ontario (LCBO) has instructed shipping companies to pause activities as industrial action impacts operations.
The LCBO has paused carrier partner pickups to “help reduce congestion” in its warehouses and supply chain, it said.
”Consignment orders are being reviewed individually to optimise product flow,“ a LCBO spokesperson told Just Drinks.
”As one of the largest purchasers of beverage alcohol in the world, LCBO has a consistent flow of containers, nearly 24/7. If we were to significantly slow down processing, as is the case in a strike situation, this flow of containers would back up quickly and have negative impacts on overall supply chain.“
LCBO said it was still taking and fulfilling orders, noting its selection of inventory “ebbs and flows” as it manages stock in and out of warehouses and depots.
“We are doing our best to remain in line with our estimated delivery timelines and appreciate the patience of our retail and wholesale customers should their order take longer than anticipated due to high volumes,” LCBO said.
Industrial action
LCBO employees are demanding increased pay and an expansion of opening hours and LCBO’s warehousing, as well as a move away from a “70% casual workforce” to permanent part-time and full-time positions at the company.
The LCBO employees are also looking for the state-controlled alcohol supplier to improve its operations, such as increasing its logistics and e-commerce capacity.
Roughly 10,000 workers are taking part in industrial action that began on 5 July. The striking LCBO employees are represented by Ontario Public Service Employees Union (OPSEU).
The LCBO yesterday (11 July) called for clarity on the union's bargaining priorities, stating it made an offer to OPSEU on 4 July and that “instead of responding to this offer or sitting down to talk about it”, OPSEU held a press conference to discuss the issue of ready-to-drink (RTD) beverages.
OPSEU wants the government to retract its expansion of RTD spirit beverages and once again make them exclusive to LCBO. Ontario Premier Doug Ford said he would not move on the RTD expansion.
The LCBO said its 4 July offer to workers included a 7% wage increase over three years and the conversion of 400 casual jobs to full-time positions.
It has also offered to limit contracting out warehousing and increase the volume of product at warehouses serving retail outlets.
OPSEU responded to LCBO yesterday, calling its offer “insulting”.
It said: “Throughout months of bargaining, LCBO workers have been clear: this strike is a fight for the future of the LCBO and the $2.5bn in revenues it generates for public services each year. That’s why we put forward a plan to grow the LCBO to meet demand, to expand revenues and to support good jobs at the LCBO and in our communities. That’s our priority.”
Addressing RTD beverages, the union said: “Ready-to-drink spirit-based cocktails are the fastest-growing market in the alcohol industry. To us, seeing those products go into 8,500 new private retail locations (like gas stations and convenience chains) means less hours of work, fewer jobs, and lower public revenues.”
Canada has 13 authorities across its ten provinces and three territories tasked with regulating alcohol sales and distribution, of which LCBO is one.
“We are ready to talk about job security,” the LCBO said. “We are ready to talk about wages. We are ready to talk about benefits.
“If OPSEU is now prepared to agree that RTD beverages are a matter of public policy and not something that should be discussed as part of bargaining, we strongly encourage them to respond to our July 4 offer. We are at the table ready for active negotiations to restart today.”
