Liquor Industry Update: March 7, 2024

Liquor Industry Update --------------------------------------------------------

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Liquor Industry Update:

March 7, 2024

Dear ABLE BC members and industry colleagues,

Here's the latest news for the private liquor industry:

ABLE BC’s Comment on Budget 2024
ABLE BC Okanagan Liquor Industry Meetings
Call for LP Policy Committee Members
Minimum Wage Increases on June 1
Extension for Labour Relations Code Consultation
Restaurants Canada ‘Chickan’t Afford Me Anymore’ Campaign

What you'll find in every newsletter:

Cannabis Corner: Complete the Cannabis Retail Membership Survey
go2HR on Tap: Continuous Learning: Advancing Equity, Diversity & Inclusion in Your Workplace
Celebrating 20 Years of ABLE BC!
Out and About with ABLE BC
Save the Date: Upcoming Events and Webinars

PAST NEWSLETTERS

ABLE BC's Comment on Budget 2024

Last month, the provincial government released Budget 2024: Taking Action for You. We are delighted that government listened to the needs of hospitality businesses, as our industry struggles to recover financially from the pandemic.

Budget 2024 addresses inflation and labour shortages for small and growing businesses by doubling the Employer Health Tax (EHT) threshold from $500,000 to $1 million. It means many of you will no longer be subject to this payroll tax, which several members say will save about $15,000 per year—money obviously better left in your pocket right now.

ABLE BC, along with dozens of other industry associations, have been advocating for this change since the EHT was first introduced. This change will make 90% of businesses exempt from the tax, which is estimated to save them more than $100 million a year.

And there’s more good news for businesses! The BC Electricity Affordability Credit will reduce electricity bills, saving businesses up to 4.6%. For the average small business, this means saving $400 over the course of the year.

Despite these successes, we are concerned about the nearly $8 billion projected deficit, which means the province will be going further into debt to finance its operations. That’s obviously unsustainable in the longer term and may impact BC’s credit rating.

The Budget also projects the BC Liquor Distribution Branch’s (LDB) annual net income will decline slightly from $1.2 billion to $1.1 billion, based on lower revenue expectations due to economic conditions, shifts in consumer behaviour, and a downward trend in liquor consumption. Additionally, the LDB will be investing $90 million in self-supported capital, including investments for update and improvements to liquor stores, technology-related projects, and ongoing operating equipment replacements.

Following the release of Budget 2024, ABLE BC’s Executive Director Jeff Guignard met with Premier David Eby at Junction Pub, a long-time member of the Alliance.

RESOURCES

BC’s Hub for Workplace Mental Health

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Cannabis Industry Update Newsletter

Sign up for our Cannabis Industry Update Newsletter to learn more about our advocacy for cannabis retailers. Click here to read past cannabis newsletters.

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ABLE BC

Member Portal

The Member Portal is your hub for all resources and benefits available to ABLE BC members. Contact david@ablebc.ca if you need help logging in.

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ABLE BC Okanagan Liquor Industry Meetings

The ABLE BC team is kicking off this year's Liquor Industry Meetings in the Okanagan! ABLE BC’s Executive Director Jeff Guignard and Manager of Membership Services David Lough will be meeting with liquor industry professionals throughout the Okanagan from April 8-10.

Want to host a liquor industry meeting in your community?

Contact david@ablebc.ca to let us know!

These meetings are open to owners, managers, and staff from any business in the private liquor industry. We are delighted to invite to all bars, pubs, hotels, liquor stores, manufacturers, and agents throughout the Okanagan. No need to be an ABLE BC member to attend!

Come learn about ABLE BC memberships, key issues we’re focusing on, and how you can get more involved in shaping BC’s private liquor industry.

See the Save the Date section below or our events page for more information about which Okanagan cities we'll be visiting in April.

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Call for LP Policy Committee Members

ABLE BC’s LP Policy Committee is seeking new members. This committee will hold regular meetings throughout 2024 to monitor industry issues for Liquor Primary businesses and to discuss progress on ABLE BC’s LP policy priorities.

If you are an ABLE BC Liquor Primary member in good standing and are interested in joining, please contact ABLE BC’s Executive Director Jeff Guignard at jeff@ablebc.ca.

Participating in ABLE BC’s policy committees is an excellent way to get more involved with our policy work, have an influence on our priorities, and support the Alliance.

Minimum Wage Increases on June 1

Last week, the BC government announced minimum wage will increase to $17.40 an hour on June 1. This represents a 3.9% increase, consistent with BC’s average rate of inflation in 2023.

We understand that this minimum wage increase will have a serious impact on your business and profitability. Our industry is still struggling to recover financially from the pandemic, and high inflation continues to put undue strain on our members. We have repeatedly communicated with government that this is the wrong time to increase costs to your businesses.

Budget 2024, released last month, addresses inflation and labour shortages for small and growing businesses by doubling the Employer Health Tax (EHT) threshold from $500,000 to $1 million. We hope that the increase to the EHT threshold will ease financial pressure on your business.

ABLE BC, along with dozens of other industry associations, have been advocating for this change since the EHT was first introduced. This change will make 90% of businesses exempt from the tax, which is estimated to save them more than $100 million a year.

Extension for Labour Relations Code Consultation

On February 1, government announced the appointment of an independent panel to review and provide recommendations for potential amendments to the Labour Relations Code.

Stakeholders were initially given less than 30 days to submit feedback to this panel. ABLE BC joined a coalition of 22 industry associations in requesting an extension to the consultation timeline.

A letter submitted to Premier Eby on February 23 stated that while there is an appreciation for government's efforts to seek input from stakeholders, 30 days is insufficient to allow for meaningful engagement. Given the significance and complexity of potential changes to the Labour Relations Code, the coalition requested an additional 30-60 days of consultation.

The deadline has now been extended till Friday, March 22, giving ABLE BC and other industry associations more time to provide input to the panel.

If you would like to discuss ABLE BC’s submission to the panel, please contact jeff@ablebc.ca before March 22.

Restaurants Canada 'Chickan't Afford Me Anymore' Campaign

Our partners at Restaurants Canada have launched a new campaign to highlight concerns about a potential 10% increase in chicken prices being contemplated by the BC Farm Industry Review Board (FIRB).

ABLE BC supports Restaurants Canada’s efforts in asking the BC government to reject the proposed 10% chicken price increase. BC already has the highest chicken prices in Canada, having absorbed an 8% increase in chicken prices since the pandemic. Industry needs cost relief, not more price increases.

Click here to learn more.

Cannabis Corner:

Complete the Cannabis Retail Membership Survey

ABLE BC meets regularly with all levels of government and senior representatives at the LDB and LCRB to discuss issues affecting BC’s private cannabis retailers.

To help inform our advocacy work, ABLE BC is asking our cannabis members to complete a 10-minute survey before March 25. If you have a cannabis membership with ABLE BC, email bo@ablebc.ca to receive a link to the survey. Input from our members drives our advocacy work and strengthens our initiatives.

Want to get involved in our cannabis advocacy? Contact our Head of Cannabis Membership Bo Chen at bo@ablebc.ca to learn more about membership. And make sure to sign up for the Cannabis Industry Update newsletter to stay informed.

JOIN ABLE BC CANNABIS TODAY

go2HR on Tap:

Continuous Learning: Advancing Equity, Diversity & Inclusion in Your Workplace

go2HR is a regular contributor to the ABLE BC Liquor Industry Update newsletter, providing tips and guidance on current HR trends, new legislation, employee recruitment and retention, and more. To read the latest instalment, sign in to the member portal or sign up for the newsletter.

Are you an employer committed to fostering a truly equitable, diverse, and inclusive (EDI) workplace? At go2HR, we understand that the landscape of EDI is constantly evolving. As we all embark on this continuous learning journey, new insights and best practices emerge.

At go2HR, we are actively engaged in our own EDI learning journey. This ongoing exploration has equipped us with valuable knowledge and resources specifically tailored to support tourism and hospitality employers in their EDI efforts.

We are excited to unveil our newly redesigned EDI Hub, featuring a more user-friendly layout and design. This hub continues to serve as a valuable resource for employers committed to building and sustaining an inclusive workplace.

Let us continue the conversation about equity, diversity and inclusion in the workplace! Explore the new HUB: http://go2hr.ca/edi-resources

go2HR, the HR and health and safety association for the BC Tourism and Hospitality Industry, has a wealth of free resources to support you. We invite you to connect with us to learn more about how you can support your employees at hr@go2HR.ca.

Celebrating 20 Years of ABLE BC!

We’re continuing to look back on the past 20 years of ABLE BC’s history, and this week we’re highlighting the Business Technical Advisory Panel (BTAP). Did you know that ABLE BC has played a key role in this government-appointed panel since its inception, and that many of the historic policy wins we have achieved in recent years have been a result of BTAP’s work?

In 2017, the BC government appointed Mark Hicken, a BC wine industry lawyer and liquor policy expert, as the Ministry of Attorney General’s Liquor Policy Advisor. Mark met with industry stakeholders, including ABLE BC, over several months to identify specific areas for government to improve efficiency and business relations with BC’s liquor industry.

In April 2018, Hicken and the newly formed BTAP presented government a report including 24 recommendations for improvements. ABLE BC has been a key contributor to BTAP, ensuring that our members’ voices were heard and understood by government. Read the original report here.

Because of our work with BTAP, ABLE BC is proud to have secured several policy wins for industry, including wholesale pricing for hospitality businesses, allowing LRS’s to sell to Special Event Permit Holders, and ongoing improvements to the distribution system.

In 2020, ABLE BC’s Executive Director Jeff Guignard stepped into the Chair position of BTAP. With ABLE BC at the helm of BTAP, we are your direct line to decision-makers who shape the future of our industry.

As Hicken commented, “ABLE has always been an active and vital part of the BTAP process. It has been a pleasure to work with Jeff on policy changes over the years. I look forward to seeing further success in the years to come.”

Jeff meets with Mike Farnworth, Minister of Public Safety and Solicitor General, regularly to discuss BTAP’s priorities, including the LDB’s out-dated IT system, lengthy delays receiving non-stock wholesale products, and other issues.

BTAP continues to meet on a regular basis to collaborate on key issues affecting all areas of BC’s liquor industry.

Do you have a story to share about your own history with ABLE BC? Get in touch with ann@ablebc.ca.

Stay tuned for an anniversary party announcement!

Out and About with ABLE BC

With spring right around the corner, the ABLE BC team is gearing up for a busy season of meetings and events. We’ll be touring the Okanagan in April, attending the BCHA Summit in May, hosting a 20th anniversary bash in June (stay tuned for more details!), and participating in the BC Hospitality Foundation golf tournaments in Vancouver and Victoria later this summer.

We’re looking forward to connecting with our members and industry partners at these events! If you’d like to host a liquor industry meeting or get involved in other ABLE BC events this year, reach out to ann@ablebc.ca.