The president of the union that represents BC Liquor Distribution Branch workers denies that jobs in the Vancouver and Kamloops warehouses are being sacrificed to keep members employed at the government’s 197 liquor stores.
Exel Logistics, part of giant Deutsche Post DHL, is one of eight companies that responded to the B.C. government’s April 30 request for proposals to privatize LDB warehousing and distribution. (See “Industry irked over Liberals’ push for liquor privatization” – issue 1178; May 22-28.)
Exel hired BC Liberal-connected lobbyists in 2005 to seek the contract. Exel’s October 6, 2009, “Project Last Spike” internal memo, obtained by BIV, said the BC Government and Service Employees’ Union (BCGEU) is key to its privatization strategy.
“BCGEU expressed concern that if the work goes out to tender and Exel loses the bid, their members will be out of work,” said the memo, which was written by Exel vice-president Scott Lyons.
“When the B.C. government awards the LDB work to Exel, the BCGEU workers and the new collective agreement will follow the work. Going forward the extent of the relationship between Exel and the BCGEU will be that of employer and union representing the workers. The BCGEU will look [to] leverage this concession to secure continuation of public liquor stores.”
But BCGEU president Darryl Walker told BIV that “there’s absolutely no truth to the fact that we’re willing to give up one set of workers for another set of workers.”
BCGEU launched its Fight Back petition at the end of May against the LDB privatization. On June 12, it debuted the DontDropPublicLiquor.ca website and video, which say higher prices are likely under a private distribution monopoly.
LDB reported an $890 million profit for 2010-11. The government has published no business case to justify the privatization. Bids are due June 29.
Six hundred of the LDB’s 3,500 workers are in warehousing and distribution. BCGEU signed a memorandum of agreement with government on March 21 for post-privatization job security. The deal includes voluntary buyouts and early retirement incentives.
Walker, BCGEU negotiator David Vipond and BC Liberal liquor minister Rich Coleman met March 28, but Walker said he could not recall the substance of their meeting. The April 30 request for proposals requires the successful bidder to assume the BCGEU contract.
“We stand by the MOA, if the RFP goes through and if this process is completed, our members will have protection that we think is extremely important for them,” Walker said. “Whether it’s the warehouse or the store, [BCGEU] will represent everyone equally.”
The 2009 Exel memo said Rob Madore, who managed the Connect Logistics liquor distribution monopoly for Exel in Alberta, “established the original contacts with the BCGEU.” Lobbyist Mark Jiles, according to the memo, “also has close ties to Jeff Fox who is the Director of Business Development for the BCGEU and President of the B.C. NDP party.”
Fox quit the presidency when he married NDP provincial secretary Laura Nichols after the May 2009 provincial election. He retired from the BCGEU in 2010 and moved with Nichols to Kosovo, where she works for the National Democratic Institute. Fox declined a BIV interview request.
“All activities related to this issue were done while I was an employee of the BCGEU and acting under the direction and authority of the BCGEU,” Fox said via email.
Walker became a BCGEU vice-president in 1999 and succeeded George Heyman as president in 2008. Heyman, now executive director of the Sierra Club B.C., is seeking the NDP nomination for Vancouver-Fraserview.
“I prefer not to comment on BCGEU issues,” Heyman said. “I’ve been gone a long time and am doing other work these days.”
Coleman has not responded to repeated requests from BIV for an interview about the privatization. •
