Opening interprovincial beer sales would be ‘huge blow’ to Newfoundland jobs: unions

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This article was published 14/03/2025 (526 days ago), so information in it may no longer be current.

ST. JOHN’S – As Canada vows to knock down internal trade barriers, unions representing workers at two large breweries in Newfoundland say easy beer sales between provinces would put local jobs at risk.

Workers at the Molson Coors brewery in St. John’s, N.L., have been on edge since threats by U.S. President Donald Trump to impose tariffs across the Canadian economy ignited talk of ending interprovincial trade barriers, said James Farrell, solicitor and industrial director with FFAW-Unifor.

The union represents more than 50 workers at the brewery, which sits at the end of a busy residential street and emits a distinctive, sweet smell on brewing days.

“Opening up interprovincial trade of alcohol … would have a very detrimental effect on the breweries that are here in Newfoundland and Labrador,” Farrell said in an interview Friday. “There’s no upside. You’d flood the market with trucked-in beer.”

Alcohol has received a lot of attention during discussions among Canadian leaders on the rules and regulations governing interprovincial trade. Provinces have their own regulations around alcohol — many have provincial sellers — and some limit how much residents can transport across boundaries for personal consumption.

The Newfoundland and Labrador Liquor Corporation has rules to protect local jobs, such as limiting the amount of beer from other provinces that can be sold in their stores, said Tom Cooper business professor at Memorial University.

If the government dropped those rules, then Labatt and Molson Coors would likely shut down their St. John’s breweries and ship their products in from their much larger breweries in mainland Canada, Cooper said in an interview.

“Honestly, a (Labatt or Molson) brewery in Ontario or even closer in Quebec could easily serve all of Atlantic Canada without too much effort,” Cooper said.

The brewery workers in St. John’s have good union jobs, and the employers are respected “corporate citizens,” he added. “They do a lot of sponsorship, they do a lot of activities.”

Farrell agreed, adding that eliminating rules protecting the breweries would be a “huge blow, not only economically, but socially.”

Premier Andrew Furey has assured him and his members that the province will help protect their jobs, he added.

The union representing workers at the Labatt brewery in St. John’s said its approximately 60 members would also be at risk of losing their jobs without trade barriers.

“Reducing barriers would mean that the large multinational companies that own these local facilities would no longer have a strong incentive to operate within the province,” said an email from Alyse Stuart, a spokesperson with the Newfoundland and Labrador Association of Public and Private Employees.

“They can reduce their production costs by shipping in from larger production sites, which jeopardizes the Newfoundland and Labrador facilities.”

In a statement, the provincial Finance Department said the government has a “long and historic partnership” with breweries in Newfoundland and Labrador. “The provincial government is mindful of this and is committed to the protection of workers and potential impacts on local breweries, craft producers, and retailers.”

Most premiers signed a pledge earlier this month with the federal government to make headway on direct-to-consumer alcohol sales, which would allow breweries or producers to sell to consumers across multiple provinces without going through government-owned liquor stores.

This report by The Canadian Press was first published March 14, 2025.