Note: The Ontario Public Service Employees Union, which represents workers at the Crown-owned LCBO, are mounting a campaign to convince the government not to privatize the monopoly liquor board. Here is the press released issue on June 1.

Toronto (1 June 2010) – The Ontario Public Service Employees Union (OPSEU/NUPGE) is ramping up its campaign to prevent the sale of Crown corporations, especially the ultra-profitable Liquor Control Board of Ontario (LCBO).

“In the face of Ontario’s $21 billion dollar deficit, selling Ontario’s crown jewels is getting another round of debate,” the union notes.

“Our message on this is clear: selling off any of Ontario’s assets, including the LCBO, is foolish. Why sell the goose that lays golden eggs year after year?”

Last year alone the LCBO, OLG, formerly the Ontario Lottery and Gaming Corporation, Hydro One and Ontario Power Generation (OPG), brought in $4.3 billion dollars in profits. Each year these funds go directly into the provincial coffers to support health care, education and other public services that benefit the people of Ontario.

“The Ontario government is reportedly considering combining these enterprises into a ’super corporation’ and selling a minority stake to private investors,” OPSEU says.
“Premier Dalton McGuinty is attempting to soften privatization by claiming that this ’super corporation’ will be partially privatized. It is more than likely however that the scheme is to work towards complete privatization. It will be a déjà vu, reminiscent of the days when Petro-Canada and Air Canada were publicly held, before being gradually sold off to the private sector.”

OPSEU notes that the Ontario Liberal government has turned to Goldman Sachs, the notoriously greedy New York investment bank, to provide advice on the sale of Ontario’s crown jewels.
“With Goldman Sachs offering advice to McGuinty on privatization, it is unlikely that the ‘best interests’ of the people of Ontario will be served,” OPSEU argues.

“We don’t want Dalton McGuinty to make the same mistake Mike Harris made when he sold off Highway 407 at a bargain basement price.”

OPSEU says the experience of Albertans since liquor sales were privatized in 1993 has shown that the idea is not only bad socially but costly financially. Impaired driving rates went up and crime increased.

“As a public agency, the LCBO has a mandate to sell alcohol responsibly,” OPSEU says.

“Each year, LCBO employees refuse to serve thousands of people who are under-age or intoxicated. Social responsibility keeps our communities safe.”

To hear more about my opinion on LCBO Privatization read “To privatize or not to privatize that is the question”

The irony that in 2005 the LCBO workers set a strike date of July 28. In 2005, the workers were going on strike to ‘protest privatization of the LCBO’ and ‘protect the profits for Ontario residents’. Now in 2009, the LCBO workers want to protect their paychecks and benefits over profits for all Ontarians.

Now, I am not a fan of any government granted monopoly because they always have TERRIBLE customer service. But I can’t have any sympathy for employees of a monopoly to go on strike! If the industry was privatized there would be a lot more jobs for the trained folks of the LCBO.

LCBO workers you wanted to keep the LCBO private in 2005. Because you were short sighted then, you hurt all of Ontario now. A few words of advice: “LCBO workers stop being so selfish.”

Note: The Beer Store nor Wine Racks will be affected by this strike.

June 24th is the deadline set by the LCBO employees to walk off the job, and have the first every LCBO strike, if they don’t get a new contract. That give you just a couple of days to stock up on everything you need for what could be a long ‘dry’ summer.

I tend to be a union supporter but in this case I am torn…how can I support a strike by employees of a ‘god-given monopoly’ that does nothing to make things better for the consumer.

If you lived outside of Ontario you know the LCBO isn’t good for consumers like we are told. Instead the LCBO is full of patranage positions that are filled by every political party (red, blue, orange are all the same) and cost the tax payers tons of money. And don’t give me ‘the LCBO brings in so much money BS’ because even if the industry was privatized the government would still get the tax dollars…but us tax payers wouldn’t be paying for the patronage positions.

Interested in what execs at the LCBO make? Check out this LCBO salary breakdown by Little Fat Wino.

If the LCBO employees go on strike…I hope they are out for a long time…because maybe then people will see the real faults with Ontario giving away a monopoly on booze.

What do you think about the strike? Should a monopoly’s employees be allowed to strike? Do you care?

Luckily if the LCBO goes on strike we can still get our libations at a few places:

1. Beer Store ….hmmmmm beeerrrrrr
2. WineryToHome.com – buy all your wine here; your chance to try Ontario wine
3. Ontario Wineries – take drive to Niagara and stock up

The LCBO is doing a better job promoting Ontario wines but it is easy to improve on doing nothing. I actually hope the LCBO goes on a prolonged strike…because in the end it can only help Ontario Wineries.