by Jeff Brownlee
As a frequent customer of a number of LCBOs in the region, I feel compelled to comment on a recent op-ed about the LCBO strike, and share some MORE facts about alcohol modernization in the province.
I’m not surprised, yet happy that the author of the piece has found a new sense of solidarity with her 10,000 union brothers and sisters after walking out on the job, leaving Ontarians definitely not “stupid, drunk and poor,” but high and dry for two weeks, during the peak of summer – all in the name of trying to protect the monopoly on ready-to-drink beverages.
Congratulations. And good luck on your continued fight – whatever that is.
Last time I checked, OPSEU LCBO members ratified a “sweet deal” agreement that includes decent wage hikes along with no retail store closures as a result of alcohol expansion. So, maybe the fight is to keep the LCBO as the main retailer of beverage alcohol? Well, that’s not a fight, it’s a reality and won’t change anytime soon.
Maybe the fight is to better serve the public? Oh wait, not once did the union ever mention the word consumer during the walkout.
So begs the question, why fight something that Ontarians want? It’s unfortunate that alcohol modernization has turned into a massive political football for all sides to kick around and distort the facts. Regardless of the motives, and regardless of political affiliation, the stark reality is that modernizing Ontario’s antiquated beverage alcohol system is long overdue, will benefit the province and give Ontarians enhanced choice and convenience not only that we deserve, but have been craving for decades.
And despite what skeptics think, it’s a fact that tinkering around the edges with the current retail model for alcohol will also generate money for both the provincial and federal governments – more than $200 million per year – and it will create jobs.
Speaking of jobs, in the private sector, governments don’t create jobs. Nor do businesses and definitely not unions. Consumers create jobs. And if the LCBO wants to be in the retail space, continuing to serve the public, it needs to embrace that fact. Bottom line.
The LCBO is a vital Crown Corporation that generates billions annually for the provincial government because it is the exclusive wholesaler of alcoholic products for retail, bars and restaurants. Yes, you read that correctly – it has a monopoly. That means that it ensures that it makes money on every bottle, can or box that is sold in the province, regardless of what establishment sells it. Despite the union hyperbole, no government (regardless of political stripes) would drastically change a system that generates billions for public coffers.
During the strike, the biggest complaint by the union was that it was worried about jobs because it doesn’t want the status quo to change, namely it doesn’t want ANY competition with the sale of ready-to-drink beverages in other retail outlets.
How it can be afraid of a “little competition” when it has a massive competitive advantage in the industry is literally beyond comprehension.
Ready-to-drink coolers, beer and wine in convenience and grocery outlets will not drastically impact traffic at LCBO outlets. Nor will it result in a huge loss of revenue at the LCBO, especially as the union decried, “Lining the pockets of CEOs instead of going to government programs.”
The modernization of alcohol in the province will enable LCBO retail stores to sell 12 and 24-packs of beer. Yet, that’s a fact that strangely enough wasn’t promoted by the union or in the media during the strike. Or ever.
Here’s some food for thought. Instead of fighting change and being afraid of it, why not embrace it and figure out how to better serve the customer – ensure you are the gold-standard when it comes to the retail sales of alcohol. You are public servants after all. The CEO of the LCBO agrees: “There are many points of sale today that the LCBO is competing with, and that’s music to my ears. Competition will ultimately challenge my people to raise the bar,” he told the Toronto Star earlier this year. Raising the bar – why is that so wrong?
Imagine though if LCBO workers embraced the words of the CEO, welcomed a little competition, and committed to improving the retail experience for Ontarians, raising that proverbial bar, instead of “keeping up the fight” to hold onto to the status quo while pointing the finger at the government of the day. More consumers would come in droves. And more jobs would follow. And that translates into more money for government programs. The LCBO will continue to ensure it gets its share on every product sold, regardless of where they are retailed.
If LCBO retail outlets can’t compete with grocery and convenience despite their huge competitive advantages, there’s something drastically wrong with the retail model and they either fix it or get out of the retail business altogether. Regardless, the Crown Corporation would still generate billions for the government.
Despite the talking points of the union, why not accept that convenience and grocery stores are professionals at selling age-restricted products already. They’ve been selling tobacco and lottery here in Ontario, and beer as well as wine in Quebec for years. Apparently, it’s easier to complain and keep on fighting the good fight with your brothers and sisters which would keep Ontario in a more monopolistic, prohibition-era alcohol regime that even our grandfathers complained about.
Cheers to solidarity.
