The Liquor Control Board of Ontario (LCBO) and the union representing 10,000 of its workers reached a tentative agreement Saturday that could bring an end to the two-week strike that’s closed hundreds of LCBO retail stores across the province.
Both the LCBO and the Ontario Public Service Employees Union (OPSEU) signed off on a return-to-work protocol Saturday morning, after the tentative deal was put on hold a day earlier. If the agreement is ratified, unionized workers will be back to work Monday, with stores set to reopen Tuesday.
“We look forward to welcoming our 10,000 unionized employees back to work on Monday,” LCBO said.
OPSEU called the tentative settlement “a win for workers and Ontarians,” in a news release issued Saturday.
“LCBO workers went on strike to protect good jobs and public revenues, and to win more permanent jobs with benefits and guaranteed hours,” the release said.
“This tentative deal does just that.”
A vote to ratify the deal will take place over the weekend, according to the union.
Deal announced Friday hit a snag
News of the deal comes after the LCBO and OPSEU both announced they had reached a tentative agreement on Friday, but the strike continued after the union said the employer refused to sign a return-to-work protocol.
Both parties accused each other of acting in bad faith, with the LCBO saying it was planning to file an unfair labour practice complaint because the union had introduced “significant new monetary demands” after signing the tentative agreement, which it said should have been dealt with at the bargaining table.
At a press conference Friday, OPSEU president JP Hornick disputed that the union had new monetary demands, but said part of their return-to-work proposals included seeking to have striking workers compensated for their time away from work.
A deal that could have ended the first LCBO strike in history is now in question. The union representing LCBO workers says the employer will not agree to conditions for its employees to return to work, while the LCBO claims the union is acting in bad faith. CBC’s Ryan Patrick Jones breaks down the latest.
Both sides returned again to the bargaining table later that day.
The LCBO issued a statement on Saturday confirming the strike that began on July 5 would be ending as previously announced.
It said the return-to-work protocol signed by both parties does not include any new monetary items.
“This is a good deal for workers and the people of Ontario,” said Finance Minister Peter Bethlenfalvy in a post on X, formerly Twitter.
New deal includes 8% wage increases: LCBO
According to the LCBO, the tentative agreement signed on Friday includes wage increases of eight per cent over three years, an additional 7.8 per cent for the lowest-paid workers and a special wage adjustment for certain trade positions in its warehouse.
It includes converting about 1,000 casual workers to permanent part-time status, hiring 60 permanent full-time employees in its warehouse operations and improved access to benefits for casual part-time employees who work 1,300 hours and 1,000 hours.
It also includes improved mental health benefits and severance provisions, the Crown corporation said.
The SAQ says two dozen branches near the Ontario border have seen spikes in traffic. It’s adjusted operations to respond to the demand, which includes one particular type of beverage.
OPSEU had said workers were striking becuase they believed Premier Doug Ford’s plan to expand alcohol sales to convenience and grocery stores would threaten union jobs and the public revenue the LCBO provides to the province.
Ford sped up those plans since the strike began on July 5, allowing grocery stores already licensed to sell beer and wine to also sell ready-to-drink cocktail beverages as of Thursday. The initial launch for that step was set for Aug. 1.
The LCBO said the signed agreement provides “no retail store closures related to marketplace expansion for life of the collective agreement.” A non-binding joint union-management committee will decide the best way to implement marketplace plans.
Management also agreed to provide letters of agreement to limit LCBO convenience outlets to 400, limit contracting out and increase the volume of product at warehouses that serve retail outlets by 1.25 million cases.
“The workers have made it clear to Ontarians that Doug Ford’s alcohol-everywhere plan directly threatened jobs and public revenues,” said bargaining chair Colleen MacLeod in a statement Saturday.
“While this round of bargaining isn’t over until the deal is ratified, I’m incredibly proud of the workers and the stand they’ve taken.”
Restaurant, tourism industry welcome agreement
The two-week strike had closed LCBO stores and disrupted alcohol sales for various restaurants and venues across the province, with some owners expressing worry as their alcohol supplies dwindled.
In a statement on Friday, industry group Restaurants Canada congratulated the LCBO and OPSEU on reaching the tentative deal, noting roughly 14,000 locations in the province’s food-service industry rely on alcohol sales for their revenue.
“Our operators are breathing a sigh of relief,” said Kelly Higginson, president and CEO of Restaurants Canada. “The past few weeks have been extremely challenging during this critical time of year. The support of our industry by the Ford government during this strike is appreciated.”
The Ontario government announced on Monday that it is accelerating plans to bring ready-to-drink cocktails and larger packs of beer into some supermarkets. This comes as some 9,000 unionized workers with the LCBO remain on strike.
The Tourism Industry Association of Ontario also welcomed the tentative agreement after it had called for an end to the strike earlier this week, citing its impact on tourism and hospitality businesses.
“Our collective attention must now focus on the work needed to return to regular operations as soon as possible to ensure the critical summer season can bounce back,” association president and CEO Andrew Siegwart wrote in an emailed statement.