LCBO workers terrified of disappearing jobs when alcohol rolls out ...

Late last year, the PC government–long a proponent of modernizing the alcohol market–announced that starting in 2026, wine, beer, cider and some other alcoholic beverages will be available in grocery and convenience stores across the province.

While the news was enthusiastically received by many in and outside the wine, beer, and cider industries, some industry workers are worried about the impact this decision will have on the LCBO. 

“Our concern from the very beginning is privatization,” Colleen MacLeod, chair of the OPSEU Liquor Board Employees Division, told insauga.com. 

MacLeod, who recently participated in a Day of Action on behalf of concerned LCBO workers who are worried the 2026 roll-out could spell the end of the LCBO as Ontarians know it, is also concerned that the Ontario-run retailer’s revenue could be diverted from health care and education to profit for private companies. 

“Right now, retail sales and the majority of profit comes back to the government. We get $2.5 billion dollars a year, up from $800 million 27 years ago when I first started,” she says. 

MacLeod says the plan, which involves the LCBO acting as the sole wholesaler to retailers, could put some public services at risk of losing a consistent source of funding–especially since the LCBO’s profits tend to increase every year. 

“Every year, [profit] has consistently risen. Last year, it was around $2.3 or $2.4 billion and now we’re at $2.5 billion. We make more and give more back to the province. Our sales skyrocketed during the pandemic and that money went back to the province, which needs it. When you take public profits and put them in the hands of private retailers, yes the government will get taxes and get a small wholesale margin, but money and profit are in retail.”  

While MacLeod and other OPSEU members are concerned about privatization, the government has been adamant that no such plan is in the works. 

“We will not be privatizing the LCBO. The LCBO will continue to be a publicly owned retailer providing choice and convenience for consumers, as well as operating as the exclusive wholesaler for all retail, bars and restaurants selling alcohol and spirits,” Colin Blachar, a press secretary with the Ministry of Finance, told insauga.com in an email. 

In December 2023, the government announced that starting Jan. 1, 2026, consumers will be able to buy beer, wine, cider, coolers, seltzers, and other low-alcohol ready-to-drink beverages at all participating convenience, grocery and big box stores across the province. 

Come 2026, up to 8,500 new stores will be permitted to sell alcohol, but the LCBO will remain the only retailer permitted to sell spirits such as vodka, gin and whiskey, 

As of now, only a limited number of grocers are permitted to sell alcoholic beverages. 

At the time of the announcement, the province said it informed The Beer Store that the Master Framework Agreement that limited the number of stores that could sell alcohol will not be renewed after it expires on Dec 31, 2025. 

“The Beer Store and LCBO will continue their retail operations in Ontario’s new marketplace,” the province said in a December 2023 news release. 

Government officials say these are some of the biggest changes in alcohol sales in the history of the province, making Ontario just the second jurisdiction in Canada – after Quebec – to offer beer in corner stores and the first to offer ready-to-drink cocktails in those locations.

Under Doug Ford’s plan, eligible retail outlets across the province, including an estimated 6,700 convenience stores and another 1,800 grocery stores, will be able to set their own pricing – right now, all retail outlets have to adhere to pricing set by the LCBO. The province also plans to remove restrictions on pack sizes and provide “time-limited” supports to make smaller producers more competitive, such as guaranteeing a certain amount of shelf space. 

Despite the province’s insistence that the LCBO isn’t going anywhere, some workers aren’t convinced and say bits and pieces of the company’s operations are being sold off. 

“We’ve been watching our work get pieced off for the last five years. They’ve taken cases out of our warehouse and outsourced our data centre and print shop,” says MacLeod.  

“We used to fill e-commerce offers, but that’s now been outsourced. All of this work is being pushed off to private entities. With expansion to grocery, there was an influx of work. Instead of investing in this so-called wholesale model, they decided to move the work out of our facilities.” 

In a news release issued earlier this month, OPSEU President JP Hornick said Ford is “lying” about the government’s plans for the LCBO.

In the release, Hornick said Ford’s denial was “directly contradicted” by what the LCBO brought to the table during a bargaining session–something MacLeod echoed. 

“The LCBO wants to remove language that protects our jobs,” MacLeod says, adding that her employer suggested removing parts of the contract that prevent the government from closing stores, laying off full-time workers and contracting out work.

“That signals what the government plans to do–set us up for privatization and the ability to close stores across the province.” 

When asked about concerns regarding lay-offs, an LCBO spokesperson said the company is “supporting” its staff and customers ahead of the looming change to alcohol distribution in the province. 

“LCBO acknowledges the government’s decision to expand convenience and choice in the beverage alcohol marketplace. We welcome the opportunity to be the exclusive wholesaler of beverage alcohol in Ontario, and to continue to serve customers in our retail stores and support the local industry,” an LCBO spokesperson told insauga.com in an email. 

“We will support our people, our partners, and our customers as we navigate change, and we remain focused on offering best-in-class retail and wholesale experiences and helping to create a more sustainable Ontario.” 

MacLeod worries the 2026 rollout will all present safety issues, as other retailers are not accustomed to selling alcohol and might not have the same training, especially at a time when thefts are on the rise.

“We see organized crime and theft; how will small businesses handle this? People come in in groups and fill their bags. They threaten us, follow us home, and vandalize our cars in the parking lot. We’ve been harassed and threatened.” 

MacLeod says that LCBO employees are trained to spot intoxicated customers and prevent minors from obtaining alcohol. 

“I don’t sell to anyone who is intoxicated. I report people for drinking and driving. We do these things every day. It’s not about profits; that’s not the first thing we think about. We think about safety and upholding the laws. Our employer isn’t telling us to sell 15 more bottles.”

She’s also concerned that if LCBO stores close, people won’t be able to access spirits near their homes–and that this might prompt the province to allow vodka, gin and other harder liquors to make their way to grocery and convenience store shelves. 

“There won’t be as many storefronts, and where will you drive to get your spirits because they will close stores? Convenience is great, but when health care and education are in crisis, I have a hard time with this. This impacts every Ontarian and we’re in every community.” 

MacLeod says that ultimately, it’s difficult to trust the government to preserve the LCBO as it is today. 

“With the Ontario Cannabis Store, the only retail they have is online. Is that where we’re going? You can’t add 8,500 new locations and expect that public profits won’t decline and LCBO stores won’t close,” she says. 

“For our members, this is our worst nightmare come true. We never thought in a million years a government would be so stupid to get rid of $2.5 billion.”

– With files from The Canadian Press