Manitoba Liquor and Lotteries is blaming a strike at its retail locations and the wage hikes that resulted, in part, for reduced profits in the 2023-24 fiscal year.
MLL’s annual report, tabled in the legislature this week, shows the Crown corporation transferred $732.5 million to the provincial government for the year ending March 31.
The reported noted the figure is down from $740.9 million in 2022-23.
JOHN WOODS / FREE PRESS FILES
In it’s annual report, Manitoba Liquor and Lotteries partly blames a strike at its retail locations and resulting wage hikes for reduced profits in the 2023-24 fiscal year.
MLL is predicting the profit line in 2024-25 will be even lower, at $715 million, due to “the impacts of collective agreement increases and higher technology costs.”
Corporation president and CEO Gerry Sul was out of town and unavailable for comment Thursday, but in his published message in the report he said last year’s profits were “achieved despite some challenging economic and business headwinds that lingered post-pandemic.”
The immediate and longer-term effects of the strike at Liquor Mart locations and the MLL distribution centre — which began with rotating walkouts in mid-July, became a provincewide job action on Aug. 8 and was settled at the end of that month — is referenced several times in the 52-page report.
Operating expenses, which rose $23.6 million over the previous year to $262.6 million, were affected by higher employee costs produced by new collective bargaining agreements, MLL reported.
Manitoba Government and General Employees’ Union president Kyle Ross, said the minimum hourly wages for the predominantly part-time workers jumped from $14.91 to $17.91.
Manitoba’s minimum wage rose to $15.80 on Oct. 1.
“One could say (previous) profits were generated by underpaying their workforce,” Ross said. “We now have a fair wage… they are doing well and the corporation is doing very well, too.”
The four-year contract provides wage increases of two per cent each year plus other benefits. It was retroactive to March 2022, when the last agreement expired.
Meanwhile, the report said MLL’s cannabis operation revenues jumped $22.7 million to $153 million in 2023-24 and the number of private retailers increased from 177 to 205; seven retail locations closed.
Revenues from Winnipeg’s two casinos — McPhillips Station and Club Regent — increased by $16.7 million to $246 million, as more people chose to gamble in person, rather than online, as pandemic fears continued to fade. Online gaming revenue dropped by about $500,000, totalling about $75 million.
Video Lotto revenue went up by $17.5 million to $342 million due to the introduction of new VLT machines and the retirement of older units.
Revenues from liquor and beer sales — despite the reduced Liquor Mart hours and availability of some products during the strike period — fell by only 1.1 per cent, to $873.5 million.
Beer sales were down 1.6 per cent and wine 3.2 per cent, but sales of ready-to-drink products went up by 7.4 per cent, or $8.3 million.
MLL noted that licensee sales increased by $7.8 million last year, reflecting the post-pandemic recovery at bars and restaurants.
The corporation also raised its contributions to charitable and non-profit groups from $1.7 million to $3.1 million last year, with the biggest increase in the sports category.
kevin.rollason@freepress.mb.ca
Kevin Rollason
Reporter
Kevin Rollason is a general assignment reporter at the Free Press. He graduated from Western University with a Masters of Journalism in 1985 and worked at the Winnipeg Sun until 1988, when he joined the Free Press. He has served as the Free Press’s city hall and law courts reporter and has won several awards, including a National Newspaper Award. Read more about Kevin.
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