Union slams Crown executives’ pay raises while liquor workers got little under Tory austerity measures By: Danielle Da Silva Posted: 1:00 PM CDT Thursday, Aug. 10, 2023 Last Modified: 6:02 PM CDT Thursday, Aug. 10, 2023 Updates

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Striking liquor workers decried raises given to Manitoba Liquor and Lotteries’ top brass amid a two-year wage freeze for union employees as neither the Crown corporation nor the union budged from their bargaining positions Thursday.

Liquor Mart and MLL distribution centre employees took the picket line to Premier Heather Stefanson’s Tuxedo constituency office Thursday morning to call attention to the corporation’s executive payroll and compensation increases for two of its officers.

“For our members, those with me here today, hearing that their bosses took 16 per cent while they were required to take just 1.75 per cent in the last round of bargaining just strengthens our resolve,” Manitoba Government and General Employees’ Union president Kyle Ross told reporters as vehicles travelling on Grant Avenue honked in support of the strike.

“We are not asking for buckets of cash. We are asking for fairness.”

The union singled out compensation provided to MLL chief executive officer Gerry Sul and liquor and cannabis operations vice-president Robert Holmberg.

MLL must report total compensation paid to employees who earn more than $75,000 a year under the Public Sector Compensation Disclosure Act.

Between 2018 and 2022, both Sul and Holmberg’s total pay increased by about 16 per cent, or approximately four per cent annually, on average.

Sul, who was appointed CEO earlier this year, earned $249,498 in 2022; Holmberg earned $246,807. In 2018, the two executives were earning $215,495 and $211,917 respectively.

The figures reported represent total compensation, including regular salary, overtime, vacation and discretionary leave payouts, among other benefits.

During the same period, unionized workers received a cumulative 1.75 per cent wage increase, or 0.45 per cent annually, in line with the Progressive Conservative government’s Public Services Sustainability Act. The act called for a two-year wage freeze followed by general wage increases of 0.75 and one per cent to curb salary costs.

“Rising inflation and the cost of groceries going up so much, that’s what our members face every day and they feel the struggle of the last wage mandate, and we need to catch up.”–Manitoba Government and General Employees’ Union president Kyle Ross

A coalition of 28 unions took the government to court over its wage-freeze legislation in 2019, arguing it was unconstitutional. The bill was never proclaimed into law and it was repealed last June.

“Rising inflation and the cost of groceries going up so much, that’s what our members face every day and they feel the struggle of the last wage mandate, and we need to catch up,” Ross said.

“Our members are struggling. The wage offer isn’t remotely close to what’s fair, and we know what Premier Stefanson deems fair, and why can’t they offer it to everyone else?”

A spokesperson for MLL called the union’s characterization of the executives’ compensation “inaccurate and unfair.”

“During the period reported, Mr. Sul received acting pay as he was the interim CEO for a period of five months in 2019 and in 2021,” the spokesperson wrote in a statement to the Free Press. “He was also promoted to a new role as executive vice-president of gaming and entertainment, both of which affected his compensation.

“Also, during this period, Mr. Holmberg saw his responsibilities increase significantly with the addition of cannabis operations to his portfolio, which was reflected in his compensation.”

Both Sul and Holmberg received the “same mandated increases” provided to all MLL employees, the spokesperson said.

About 1,400 MLL workers have been without a contract since March 2022 and want raises in line with those obtained by Stefanson and her cabinet — 3.3 per cent in 2023 and 3.6 per cent in both 2024 and 2025.

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MGEU began labour action at MLL-operated retail outlets July 19 and a week later agreed to the Crown corporation’s request to bring in a conciliator. After a series of lockouts over the holiday weekend, the union decided Monday to strike provincewide, choking off liquor supplies and shuttering stores.

“Our customers, business partners and our employees continue to be subjected to unnecessary disruption,” Sul said in a statement Thursday. “We are making every effort to maintain operations, but our most important efforts should be on getting our employees back to work.”

MLL is offering two per cent a year over four years, and raising the hourly starting wage $2.38 above the province’s minimum wage.

The current starting hourly wage for MLL workers is $14.91, increasing to $15.30 in October in line with the raise in minimum wage. The promised bump for entry-level workers would increase the starting wage to $17.68 hourly this year and by March 2025, the starting wage would be $18.57, when a one per cent recruitment and retention adjustment is applied that year.

Additionally, MLL said it is offering a one-time, lump-sum payment of between $600 and $1,00 to “almost all employees currently” receiving the starting wage, based on hours worked.

The corporation has accused the union of withholding details of the monetary offer from its membership.

In response, Ross said the union has been transparent with workers, who understand that a two per cent general wage increase down the line is not enough.

“These raises don’t really affect the vast majority of members. We’re looking for fairness for all our members, not just a couple at the bottom (of the wage scale),” he said.

Both MGEU and MLL said conciliation talks continue.

danielle.dasilva@freepress.mb.ca