Ontario Restaurant Hotel & Motel Association

Ontario Restaurant Hotel & Motel Association

June 24, 2009 16:56 ET

Restaurants Relieved LCBO and Employees Reach Tentative Settlement

Attention: Food/Beverage Editor, News Editor, Travel/Tourism Editor TORONTO, ON--(Marketwire - June 24, 2009) -
The Ontario Restaurant Hotel & Motel Association (ORHMA), representing Ontario's hospitality industry, is pleased that the Liquor Control Board of Ontario (LCBO) and the Liquor Board Employees Division of Ontario Public Service Employees' Union have reached a tentative agreement.

"A strike by LCBO employees would have had a devastating effect on Ontario's hospitality industry" said Tony Elenis, ORHMA President and CEO. "A successful summer season is all the more important this year because of the global recession. Restaurateurs have been waiting for the warm weather, and counting on a strong summer season. With a strike averted we hope this summer will be tremendous success."

Ontario's restaurants, bars and nightclubs are encouraged that a costly strike will be avoided. Ontario's restaurants, pubs, bars and taverns have struggled due to external factors such increased produce, labour and utility costs, changing travel patterns and the global recession, and are impacted by the municipal labour disruptions in Toronto and Windsor. An LCBO strike could have been very costly to the economic viability of the province's restaurant, pub, bar and tavern operators who account for almost 11% of LCBO sales.

"This would have been especially punishing to small independent operators who do not have the cashflow to be able to stock up on reserves prior to the strike, do not have a place to store extra inventory and for whom the majority of sales is beverage alcohol" said Elenis. "The laying off of bar staff would have been a distinct possibility, depending on the length of a strike. It could even have affected the viability of many small businesses. We're obviously pleased a tentative agreement was reached."

Ontario's 17,000 licensed restaurants, pubs, bars and taverns purchase almost $450 million per year of wine and spirits from the LCBO for resale to patrons.

The ORHMA is Canada's largest, provincial, not-for-profit association that represents the interests of Ontario's foodservice and accommodation industry. /For further information: For further information contact Michelle Saunders, ORHMA Manager of Government Relations, at 905-361-0268 ext. 307/ IN: FOOD, LABOUR

Contact Information

  • Michelle Saunders, Manager of Government Relations, Ontario Restaurant Hotel & Motel Association
    Primary Phone: 905-361-0268 ext. 307
    Secondary Phone: 416-624-6753
    Toll-Free: 800-668-8906
    E-mail: msaunders@orhma.com