Ontario plans to abolish the monopoly – the employees strike

5400 employees of the Ontario Liquor Board (LCBO) threatened to strike to protest against plans for the abolishment of the monopoly. A report from the government had proposed that the alcohol monopoly should be replaced by licensed shops (the licenses were to be auctioned off). What happens now after the strike threat is unclear.

The report (dated July 2005) that was at the origin of this is interesting to read. The four main conclusions are that an abolision of the monopoly and change of the system as proposed would lead to:

1. the consumer would get greater convenience and choice and would benefit from a competitive retail environment;
2. the government would remove itself from investment risk while increasing its annual revenues;
3. Ontario would continue to benefit from sound social responsibility practices; and
4. the existing commercial inequities would have been materially addressed.

Read the full report here: http://www.beveragealcoholreview.on.ca/