After Ontario’s conservative government fast-tracked their plan to expand the privatization of alcohol in the province, 10,000 Liquor Control Board of Ontario (LCBO) employees went on a labour strike from July 5 to 22.
The strike negotiations were between the LCBO employees represented by the Ontario Public Service & Employment Union (OPSEU) and the LCBO. Employees voted to ratify a new three-year agreement on July 21 which includes job security and wage improvements from the provincial government.
While an expansion of alcoholic offerings at grocery, convenience and big-box stores was on the horizon for 2026, issues emerged in the province with the government’s decision back in May to fast-track the expansion to give opportunities to the private alcohol sector. With the fast-track, by the end of this October, any grocery, convenience and big-box store will be able to sell alcoholic beverages if they apply for a permit to do so.
Ready-to-drink beverages were a major point of conflict during the negotiation, as they are the fastest growing alcoholic beverage in popularity and responsible for 9.1 per cent of sales in 2023.
“If they want to negotiate over [ready-to-drink beverages], the deal’s off. I’m going to repeat that: that ship has sailed,” said Ford at a news conference on July 10 in an Etobicoke brewery.
High-alcohol spirits are not going to be a part of the expansion and will continue to be sold exclusively at the LCBO. Wholesaling will also continue to be done by the LCBO. The increase in availability of alcohol is a serious cause for concern for health advocates in Ontario.
In a statement issued in 2023, the Centre for Addiction and Mental Health (CAMH) expressed their disagreement with the decision.
“Emphasizing convenience will come at the expense of the health of Ontarians,” the statement reads. “Evidence shows that the expansion of alcohol availability, especially through private retail outlets, results in increased consumption and ultimately more alcohol-attributable hospitalizations, diseases, and deaths.”
OPSEU’s primary concern throughout the strike was that the privatization of alcohol sales would lead to the detriment of the LCBO and its employees.
“I don’t think it’s the end of the road for the LCBO at all,” said an employee of the LCBO and incoming fourth-year environmental science student at Wilfrid Laurier University, who would not like their name published due to a risk of losing their job.
They said one of their concerns about the expansion is the increase in theft and potential danger facing locally owned businesses. According to the Alcohol Research Group (ARG), an increase in liquor stores results in an increase in violent crimes.
“A person running their own convenience store, that’s their own livelihood, that’s their own product,” the LCBO employee said. They said at the LCBO, employees are instructed to not interfere with theft and to write an incident report after each occurrence.
The LCBO employee said they fear that locally owned convenience stores, such as the ones that will soon be selling alcohol, will not have the same policies in place, leading to an increased risk for the employees.
In a statement released on July 4, OPSEU said the government’s decision to expand private alcohol sales will take away much of the funding the LCBO provides to health care, education and other public services.
According to the LCBO’s 2023 annual report, $2.58 billion was transferred to the Ontario government in dividends and over $14.6 million was reinvested into the community via partners for community development.
According to Statistics Canada, from 2022 to 2023, the net income of liquor authorities in Ontario was around $2.46 billion, excluding taxes.
In Alberta, where the sale of alcohol has been privatized since 1993, that same statistic was $846 million.
Adjusted for population, Ontario’s revenue per capita was $164.64 and Alberta’s was $193.55. Alberta’s income in this case is generated by their liquor markup, a policy in place that is similar to one at the LCBO.
