Liquor Industry Update: April 20th, 2023

Dear ABLE BC Members and Industry Colleagues,

Here’s what you’ll find in today’s update:

  • LDB Update on BTAP Recommendations

  • Minimum Wage Impact Survey

  • Avoiding Liability for False Imprisonment – Citizen’s Arrest and Shopkeeper’s Privilege

  • Minors as Agents Program (MAP)

  • ABLE BC Comment on BC Cancer Agency Campaign: The Proof

  • ABLE BC Member Webinar: Gratuities – Have the Rules Changed?

  • Gig Work ‘What We Heard’ Report Available

  • WGBC Forecasting 39 to 56 per cent Drop in BC Wine Production

  • Register for the BCHA Summit: the Accommodation Business Event of the Year!

  • Industry Engagement

  • Save the Date: Upcoming Events and Webinar

  • Out and About with ABLE BC!

  • Join ABLE BC Today!

Find all past updates here.

LDB Update on BTAP Recommendations

The BC Liquor Distribution Branch (LDB) met with the Business Technical Advisory Panel (BTAP) earlier this year to discuss recommendations 1 (alternative distribution for NSWP) and 3 (improvement opportunities for Delta Distribution Centre). Following this meeting, LDB have shared this update:

As we shared early last year, the BC Liquor Distribution Branch (LDB) continues to make progress on operational and efficiency improvements at its liquor distribution centre in Delta, specifically those that support BTAP recommendations 1 and 3. The LDB recognizes the importance and urgency of this work, and we are committed to improvements that will benefit industry and support BTAP recommendations 1 and 3. 

Through this work, several improvements have already been completed, including: 

  • Developing a new process for SKU management to optimize space in our distribution centre

  • Onboarding additional, higher-volume non-stocked wholesale product (NSWP) SKUs

  • Decreasing the end-to-end lead time for the distribution of NSWP since the initial Deloitte report from 2019

There are a number of additional priority projects being completed in support of BTAP 1 and 3 that will continue to improve our processes and address industry concerns; however, some of these activities, including order management, will take some time due to their size and systems implications. To that end, we are working on a framework to identify options that will modernize existing IT systems and enable changes more effectively. Through this modernization work, the LDB will be better positioned to respond to industry feedback, including the recommendations related to BTAP 1 and 3. 

As work is underway to finalize the LDB’s modernization framework, we look forward to providing more details at an upcoming BTAP meeting.  

 Thank you for your continued collaboration as we work through these updates. 

We will provide further updates as they are available. If you have questions or concerns, please share these with ABLE BC’s Executive Director Jeff Guignard at jeff@ablebc.ca.

CLICK HERE TO LEARN ABOUT BWI

Minimum Wage Impact Survey

As you know, the Provincial NDP Government announced that minimum wage will increase to  $16.75/hour on June 1, 2023, a 6.9% or $1.08 increase reflecting the average annual inflation rate in 2022. 

We are deeply  frustrated and disappointed by this news. We know that you are, too.

Help us better understand the impact of this wage increase on your business by filling out  this survey by  April 30, 2023. Your answers will remain confidential and will help us advocate on your behalf for reasonable solutions.

 Since 2020, our industry has already absorbed significant government-imposed increases to labour costs, such as: the employer health tax, mandatory five paid sick days, a new statutory holiday, WorkSafe BC premium increases, and significant minimum wage increases. These constant cost increases hinder our ability to create jobs and sustain economic prosperity.

We encourage you to express your frustration directly to the Minister of Labour, the Honourable Harry Bains, at  LBR.Minister@gov.bc.ca. Please copy your local MLA and ABLE BC’s Executive Director at  jeff@ablebc.ca. 

We are continuing to engage with government on this issue, and your participation in  this survey will help our efforts. 

Minimum Wage Survey

Avoiding Liability for False Imprisonment – Citizen’s Arrest and Shopkeeper’s Privilege 

We have recently heard from LRS members about an increase in shoplifting in private liquor stores and members have asked for clarification about citizen’s arrest. ABLE BC Director-at-Large, Lorne Folick, has shared the following to help you better understand risks associated with false imprisonment.

Summary

In a retail setting, owners or employees can detain a person for theft if they actually witness the person committing the crime (citizen’s arrest under the Criminal Code). Citizen’s arrests do not give a shopkeeper authority to detain someone out of mere suspicion or for investigative purposes. However, one 2016 case in Ontario brought the principle of “shopkeeper’s privilege” into Canadian jurisprudence for the first time. Shopkeeper’s privilege is a narrow window allowing detention for investigative purposes if certain parameters are met (see below). It remains untested in other provincial jurisdictions.

1. The Tort of False Imprisonment

Plaintiff must establish three elements to prove false imprisonment: (1) the plaintiff was totally deprived of his or her liberty; (2) the deprivation took place against the plaintiff’s will; and (3) the deprivation was caused by the defendant.

The tort is actionable per se – no proof of damage is required. Nor is the plaintiff required to show defendant used actual physical force; only that he or she had a reasonable belief force might be used, or that he or she could not leave due to moral pressure.

Onus then shifts to the defendant to justify the deprivation of liberty, thereby negating the “false” element of the imprisonment. The two potential ways to justify are: (1) legal authority to arrest as a citizen; or (2) the recently recognized shopkeeper’s privilege.

2. Legal Authority to Arrest in Shoplifting Context

Citizen’s Arrest: Arises from common law and Criminal Code. Despite the criminal/civil divide, courts have used citizen’s arrest provisions of Criminal Code as guide to determining lawful citizen’s arrest in tort context.

Section 494 of the Criminal Code - Arrest by owner, etc, of property

The owner or a person in lawful possession of property, or a person authorized by the owner or by a person in lawful possession of property, may arrest a person without a warrant if they find them committing a criminal offence on or in relation to that property and

  • they make the arrest at that time; or

  • they make the arrest within a reasonable time after the offence is committed and they believe on reasonable grounds that it is not feasible in the circumstances for a peace officer to make the arrest.

A security guard or other store employee would typically fall within the scope of this provision. However, under this section, an offence must have been committed in order to perform a lawful citizen’s arrest. Therefore, it endorses an absolute liability situation even in event of honest mistakes.

Further, Criminal Code provisions do not authorize store owners or employees to perform mere investigative detentions.

3. Shopkeeper’s Privilege

Historically recognized in the US, but not recognized in Canada until 2016 Ontario case, Mann v Canadian Tire Corporation Limited, 2016 ONSC 4926:

Having identified the justifications for recognizing shopkeeper's privilege, the court set out five conditions that must be met before the privilege can be invoked:

  1. There must be reasonable and probable grounds to believe that property is being stolen or has been stolen from the shopkeeper's place of business. A security alarm triggered when a person is in the process of leaving the store would be sufficient to provide such grounds.

  2. The sole purpose of the detention must be to investigate whether any item is being stolen or has been stolen from the store.

  3. The detention must be reasonable and involves inviting the suspect to participate in a search to resolve the issue. The privilege does not bestow a power upon the store owner to search the detainee without consent.

  4. The period of detention should be as brief as possible and reasonable attempts to determine whether an item of property is being stolen or has been stolen should proceed expeditiously.

  5. If the detained suspect refuses co-operation, the store owner is entitled to detain them using reasonable force whilst summoning the police and until they arrive.

Click here to download a pdf.

Please reach out to us at ann@ablebc.ca if you have any questions about risks and liabilities associated with shoplifters. 

Minors as Agents Program (MAP)

ABLE BC has recently been informed that licensees are failing compliance checks for the Minors as Agents Program (MAP) at an alarming rate – between 20 to 30 per cent in both Liquor Primary and Licensee Retail Store businesses. This is seriously concerning.

We know members are committed to ensuring minors are restricted from accessing alcohol at your establishment. It is a core requirement for all liquor licensees, and an important goal for government. Failing to meet this requirement not only puts your business at risk of serious fines or temporary closure, it also undermines our association’s ability to advocate for your interests.

We urge all licensees to review and update your ID checking policies and ensure all employees understand their responsibility to ID patrons and refuse service to anyone who cannot produce two pieces of valid ID. As the summer approaches, you should also consider having all staff review the Serving It Right course. 

MAP is one of the  Liquor Control and Regulation Branch’s (LCRB) most effective programs to prevent underage alcohol and cannabis use. Given the potentially severe consequences of underage consumption, preventing the sale of liquor and cannabis to minors is one of the LCRB’s key priorities.

 ABLE BC has due diligence materials available  online for members as well as signage in our  online store. If you are interested in these materials, please get in touch with Ann Brydle, Manager of Membership and Communication, about becoming an ABLE member. You can reach Ann at 604-688-5560 or  ann@ablebc.ca. 

ABLE members receive a discount with  Sting Investigations on due diligence and compliance services.

If you have questions about MAP, please reach out to  lcrbliquorpolicy@gov.bc.ca

ABLE BC Comment on BC Cancer Agency Campaign: The Proof

 In January 2023 the Canadian Centre on Substance Use and Addiction (CCSA) released Canada’s Guidance on Alcohol and Health Report, which recommends that no amount of alcohol is safe to consume and that Canadians should have no more than two alcoholic drinks per week. This is a major shift from  Canada’s current low-risk drinking guidelines of a maximum of 15 drinks per week for men and 10 drinks per week for women.

This report and the proposed guidelines have been controversial. Groups such as the  International Scientific Forum on Alcohol Research have raised serious questions about the CCSA's study, and ABLE BC's  ABLE BC’s Executive Director Jeff Guignard has spoken with media about this several times this year:

It is important to remember that  these guidelines have not yet been adopted by Health Canada. Despite the CCSA's claims, they  do not replace the current low-risk drinking guidelines. We are also concerned about the lack of expert peer-review of the CCSA's data and conclusions.

Despite this, BC’s Ministry of Health will be promoting these guidelines publicly. 

The BC Cancer Agency has just launched  The Proof, a campaign to bring awareness to British Columbians about cancer risks associated with drinking alcohol. 

The CCSA report also recommended placing warning labels on all alcohol products. As your industry representatives to government,  ABLE BC  has recommended against imposing any new regulations on the production or sale of alcohol. As you know, the alcohol industry—from production to distribution to point of sale—is already highly regulated. Every liquor licensee in BC is required to display Alcohol Sense posters promoting responsible drinking habits, and every person serving liquor in BC—whether in a retail or hospitality setting—is required to be certified in  Serving It Right.
ABLE BC is engaging with both our Provincial and Federal Government partners on this issue and we will continue to provide updates as they are available.  If you have concerns or perspectives you’d like to share, please contact Jeff Guignard at  jeff@ablebc.ca .

ABLE BC Member Webinar: Gratuities – Have the Rules Changed?

 A recent decision of the Federal Court of Appeal has generated considerable  attention and raised questions about what sort of gratuities must be treated as employee income and taxed accordingly. Other employment standards rules about who is allowed to retain gratuities and/or participate in tip pools add further complications.

Ryan Anderson, an Employment Lawyer with Mathews Dinsdale & Clark LLP and ABLE BC member, will join us over zoom on Thursday, May 18 at 10am to provide an update and clarity in this area and answer any questions you might have about gratuities. 

If you have questions about how to handle gratuities, best practices for tip pools, or what your responsibilities are regarding payroll taxes, please send these to ann@ablebc.ca.

Webinar details:

Date: Thursday, May 18, 2023

Time: 10:00 am-11:00 am

Location: zoom

Tickets: FREE for ABLE BC members. $10 for non-members.

Register Here

Gig Work ‘What We Heard’ Report Available

The provincial government sought feedback from workers and employers from October 2022 – January 2023 to determine if certain gig work should be covered by the Employment Standards Act.

The feedback has been compiled into a ‘what we heard’ report, now available here.

“We recognize that British Columbians have embraced ride-hail and food-delivery services, but most people involved in the sector agree there is room for improvement,” said Harry Bains, Minister of Labour. “We are working together with workers, with platform companies and with others on solutions to improve working conditions and protections.”

Some highlights from the report include:

  • Workers value flexibility of gig work

  • Low and unpredictable earnings are concerning

  • Most platform companies support guaranteed minimum earnings

This report will inform next steps from the provincial government. We will provide further updates as they are available. In the meantime, if you have any questions or comments about the report please email us at jeff@ablebc.ca.

WGBC Forecasting 39 to 56 per cent Drop in BC Wine Production 

A cold snap in December 2022 which saw temperatures as low as -20°C and -30°C in the interior and Kelowna, caused significant bud damage and will reduce the 2023 harvest by an estimated 39 to 56 per cent. 

Wine Growers BC CEO Miles Prodan says “up to half of the grapes will not bear fruit this year.” 

The consumer impact of the reduced 2023 vintage will be delayed. White wines will come onto shelves next year and red wines a year after that.

Wine Growers BC has advised the BC Ministry of Agriculture and Food of the potential damage and is meeting with industry representatives on how best to work with government to help mitigate the impact to industry.

Click here to read the full CEO update from Miles Prodan.

Register for the BCHA Summit: the Accommodation Business Event of the Year!

The British Columbia Hotel Association’s annual BCHA Summit is coming to Kelowna on May 1-2, 2023!

Highlights include top-notch speakers, industry-driven sessions, and nearly 50 leading vendors at the Summit Marketplace. Plus, networking, brews, bites, and bowling at Kelowna's BNA Brewing. Don't forget the Summit Spring Fling and Awards Ceremony, featuring music, entertainment, and recognition of the Okanagan's bounty, including the delivery of seven BC Hotel Association Awards of Excellence.

Register at www.bchasummit.com to expand your professional circle and learn from industry leaders and top government officials.

Industry Engagement

Make your voice heard!

WORTH is seeking to understand the status of gender equity initiatives in BC’s recreation, tourism, and hospitality industries. Take the survey here

TIABC, go2HR, and Destination BC are seeking feedback from BC employers on diversity, equity, inclusion, and accessibility. Take the survey here.

Out and About with ABLE BC!

ABLE BC has been on the road this week! We hosted liquor industry meeting across Vancouver Island, meeting with members and colleagues in Langford, Nanaimo, Comox, Campbell River, and Tofino.

We always enjoy meeting with members and non-members! Hearing directly from industry is how we ensure our policy priorities are in line with what our members need.

Want to meet with Jeff and ABLE BC? We’ll be announcing more liquor industry dates throughout BC soon! Want to host a meeting in your community? Reach out to ann@ablebc.ca.

ABLE BC in the media: 

Ann Brydle