Who's right in the Labatt/Lakeport brewery mess?
If you watched any news broadcast from eastern Canada yesterday, chances are you saw the still-developing story about Labatt, Lakeport and some pissed off workers from the city of Hamilton.
Labatt, as you may have heard, has decided to move production of its locally produced Lakeport beer from the Hammer to London, Ont. The change to abandon its Hamilton brewery, where the beer has been made since 1992, will result in the loss of 143 jobs.
But the controversy, the real meat of the story, isn’t in the lay-offs. It’s in the corporate power-playing and the nasty realities of cutthroat business.
To recap: Labatt is moving its operations to London, leaving 143 workers out of a job. Other breweries – Rochester-based North American Breweries and Calgary’s Minhas Creek Brewing, among an unnamed third party – have offered to swoop in and buy the Lakeport locale, saving each and every employee. The people of Hamilton like this.
But the deal hinges on whether or not Labatt will leave behind key brewery equipment, which it maintains it will not. The people of Hamilton do not like this.
And this is where the story gains steam. From here, the fate of 143 Hamiltonians hangs in the balance of corporate bickering and a polarizing case of “Well, just who the hell is right in all this?”
In Labatt’s defence, the beer maker says it’s a “matter of practicality” to refuse to sell the brewery with its equipment left behind, according to a company spokesman. To prove it’s not the bad guy, the brewer has pledged to pay $2.1 million in lease and tax subsidies to a company that buys the building and gives hiring preference to laid-off Lakeport brewery workers.
Yet, the big proviso to this deal for Labatt is that the prospective company cannot be a fellow brewer – the only businesses, to this point, that have offered a real interest in saving those 143 positions. And that’s the part that has Hamilton hopping mad.
“Many Hamiltonians say Labatt … could have best shown it cared about a city beset by thousands of recent manufacturing layoffs by saving the lost jobs,” writes Daniel Dale of the Toronto Star.
So, who’s right in all this?
On the one hand, we have Labatt, a business – repeat: business – looking after its best interests. A reluctance to sell off its brewery complete with beer making equipment isn’t a move to agitate laid-off workers, it’s the smart business play. Don’t do anything to help your competition.
But then there are 143 workers that have a legitimate gripe. Not only did Labatt, in this case: Faceless Corporation X, swoop in and buy the home-grown franchise with suspicious motives (many forecasted the brewer would move Lakeport from the moment it was purchased in 2007), it’s also standing in the way of prospective saviours who want to save their jobs.
Who’s right, then? Which side are you on?
By Jason Buckland, MSN Money
Posted by: Mike 2 | Apr 22, 2021 12:00:28 PM
First of all, my guess is that Duke made that comment, just to rile everyone up. It is such an obviously stupid comment that it cant be real. No one is that dumb, are they? Second, there really is no free competition in Ontario. The LCBO and the Wineries / Brewers control every drop we drink. Prohibition is alive and well in this archaic society. And third, Labatt is a huge corporation with one motive...Profit. That's ok, because that's why they are in business. But when you screw the people who got you where you are in the name of making a couple of bucks, then you are dead wrong and do not deserve the support and loyalty of your customers, or your employees. The 2.1 million is such a small drop in a huge bucket to Labatt. But given the conditions applied, they knew their money was safe anyway! All companies are run by MBA's. They do not care about people, or community, or the effect their decisions have on real people. They only see the bottom line. And eventually, that will be their undoing. Unfortunately, many of us will not be around to see it happen.
Posted by: instalher | Apr 22, 2021 12:26:11 PM
if its my company i will do whatever i want with it ... you were happy to come and apply to work for labatt now be gracefull and accept that they are moving.... why is it we are only happy when OUR needs are met? Labatt gave you employment for a time... thats now over so move on...... get up at 7 and go knock on some doors and ASK for a job... i dont care who you are or how old. there is work out there. its your choice weather you want it!!! i have no sympathy for over paid workers at a unskilled union job like autoworkers who bitch and complain all the time.... try working at a real hard labor intesive job for 12 bucks an hr. like alot of us do! As far as labatts moving goes..... well if you dont like it buy the company yourself and keep it there and you make all the business decisions!
Posted by: EILEEN LYELL | Apr 22, 2021 12:42:15 PM
I agree with the majority of the people. Ever since free trade came into effect Canada has gone down the tubes. Nothing against Americans (because at least they stick up for their country) but when free trade come into effect American businesses came into Canada and Canadian businesses closed down and went to the States.
The same with corporat businesses - if they have a little competition they buy them out and either close them down or move the business.
This is a same as I believe Lakeport is a Hamilton busines and should have stayed a Hamilton business.
WHY WHY did the previous owners even sell it off to Labbetts???
Posted by: robert | Apr 22, 2021 12:45:30 PM
labatts and molsons dont care about you they would make beer on the moon to save money
Posted by: Boycott Labatt | Apr 22, 2021 12:46:25 PM
To suggest that Lakeport was a brewery is a stretch. Independant of the fact that it was a horrible beverage and would never drink it, I am appaled at Labatt's decision, not to shut down the plant, but to eliminate competition in this manner and cripple so many people in the process. Again, I never drank and would never drink Lakeport. Going forward I will never drink another Labatt product.
Posted by: Marlene | Apr 22, 2021 12:58:31 PM
The people of Hamilton have to show Labatts we care by cutting into their profits. There are a lot of beer drinkers in this city. If many of them were to switch brands it could have a significant impact. Once people develop new tastes they might never go back. BOYCOTT LABATTS!
Posted by: joe | Apr 22, 2021 1:03:50 PM
The Ontario government should look into what they did there a few years back in British Columbia. Now local pubs have adjoining beer/liquor/wine stores, with lots of promos and competitive pricing. The B.C. government still has their chain of stores, where u can buy it all, wine, beer, and liquor, but they compete with the private chains, and have attractive stores, with good hours to shop.
Either way the government generates revenue through taxes, whether the private guy or government run store sells the products.
Wake up to the new millenium Ontario!
Posted by: M Newhouse | Apr 22, 2021 1:33:47 PM
Beer, wine and liquor are basically government monopolies with respect to sales-a totally unjustifiable and ludicrous situation full of overpaid employees (civil servants?) and lack of competition. prices remain ridiculously high as a result! South of the border prices are about half of ours and selection much greater-perhaps reasonable if our $$ is almost half of the US dollar but acceptable no longer! Canadians are lemmings who put up with such nonsense. Is it not time that we took action, EH? Let your MPPs know that this is nonsense. These products should be sold in supermarkets or do the powers that be think that we must all be protected from ourselves? When the next provincial election is called, see that this issue is on the agenda and let those MPPs that support continuation of the current iniquitous, outmoded and monopolistic liquor and beer distribution system declare themselves and lose their seats!
Posted by: Gary Bie | Apr 22, 2021 2:11:33 PM
I intend to try Minhaus products and if I find one I like -it will be my beer of choice! Labatt is no longer my beer of choice.
Posted by: Jack | Apr 22, 2021 2:17:18 PM
You guys do realize Labatt is a business right? You want them to leave behind key equipment so a competitor can take it and use it against them? Are you insane? ALSO, they aren't closing down the brand LakePort, just moving its production to London, ANOTHER Canadian city. YOu guys are just being idiots.. stop complaining about 143 ppl losing their jobs. Its business, you have to be able to compete and consolidate otherwise other companies will tear you down. Just because they bought this business coupla years ago doesnt mean they have to stay in Hamilton forever. If that was the case, the previous company should have put it in the agreement!! Blame them! I don't agree with DUke and his "Serves them right" attitude as its not the fault of the employees that Labatt is moving away.... But I still think all those people who are chanting "I wont buy Labatt" are huge IDIOTS! The company employes several thousands in Canada, and provides a lot of tax revenue. Yes, lets stop buying their product so we can have further layoffs... IDIOTS!
Posted by: Jack | Apr 22, 2021 2:18:22 PM
You guys do realize Labatt is a business right? You want them to leave behind key equipment so a competitor can take it and use it against them? Are you insane? ALSO, they aren't closing down the brand LakePort, just moving its production to London, ANOTHER Canadian city. YOu guys are just being idiots.. stop complaining about 143 ppl losing their jobs. Its business, you have to be able to compete and consolidate otherwise other companies will tear you down. Just because they bought this business coupla years ago doesnt mean they have to stay in Hamilton forever. If that was the case, the previous company should have put it in the agreement!! Blame them! I don't agree with DUke and his "Serves them right" attitude as its not the fault of the employees that Labatt is moving away.... But I still think all those people who are chanting "I wont buy Labatt" are huge IDIOTS! The company employes several thousands in Canada, and provides a lot of tax revenue. Yes, lets stop buying their product so we can have further layoffs... IDIOTS!
Posted by: daisy | Apr 22, 2021 2:25:13 PM
It is sad that a company as large as labatts would be so "practical" that it would kick a cummunity in the teeth.In a community that has faced massive job loss and family hardship a factory that employes 143 people can hardly be a threat to labatts. How ever a nation wide boycott may be. I for one will not be buying labatt products as long as there is a boycott.
Posted by: CT | Apr 22, 2021 2:33:40 PM
No Labatt does not have a responsibility to do anything other than obey the law. If the people of Hamilton are unhappy with Labatt quit buying their product. Set up your own brewery instead of expecting Labatt to furnish their competition with a facility. Seriously stop and consider how foolish that sounds. Better yet let's ask the government to build a new brewery to emply the 150 who lost their jobs. That seems to be the norm today, especially in the auto industry.
Posted by: none | Apr 22, 2021 2:38:33 PM
Duke won
Posted by: Zimo | Apr 22, 2021 2:41:42 PM
I worked at Lakeport for 10 years in the lab. Obviously DUKE, you are the one that is uneducated since it takes different levels of education to run a company.
From CEO down to the person on the line. All types of individuals are out of work....Chemists, Engineers, Accountants, Lab Technologies, Sales, Purchasing etc......
Posted by: mikem | Apr 22, 2021 3:06:22 PM
Darlene:
You are partly right but wrong! Quebec is regulated by the same laws as the rest of Canada. Beer cannot be sold less than $24 a case, but you can buy it in a dappeneur. I live in Ottawa and we go to Quebec to buy our beer, the store owner was featured in the Ottawa citizen at Christmas he has the cheapest beer anywhere and people from Ontario are his main customers.
But he said that he would love to sell it cheaper but he is forced becuase of "the law" to keep it above $24 a case!!!!
Beer is cheaper in Quebec but liquor is more expensive in Quebec!
All because of Government interference in our lives, trying to save us from Drinking too much and making sure that they control it, collect taxes and to make sure there is NO COMPETITION
Posted by: mikem | Apr 22, 2021 3:18:48 PM
EILEEN LYELL
What are you talking about? have you been paying attention.
This beer and brewery situation has NOTHING to do with FREE TRADE! the beer industry is government controlle. The government control where it can be sold, to who, the price (no less than $24 a case) and who sells it. I wish it was open to free trade but its not.
The big brewers along with the government decide what US beers come in and regulate the price. Absolutely nothing to do with Free Trade!!!
Free trade has been a blessing for Canada. over 92% of our exports go to the US. Most of our food especially in the winter comes in from the US tax free duty free!!!
We've seen substantial decreases in prices for most things sold in Canada since free trade came into effect.
I can't believe some of the comments going on here!!
Posted by: wow duke | Apr 22, 2021 3:57:45 PM
Duke has ball*. I do feel bad for the people that lost there jobs, but that is also life. A lot of people have lost jobs over the past few years. The educated people that were layed off will find work again, and the labor workers will find work again. Just because you have a degree(arts) doesn't mean you are a good worker, or deserve a high paying job. I know plenty of people that I went to university with that aren't very bright. If you have a good education(top engineering school, business schools, etc) you will most likely find another job quickly, but only those top degrees have that luxury now. "Survival of the fittest" will allow the people who really want work to find jobs.
Posted by: wow duke | Apr 22, 2021 4:02:32 PM
The gov't shouldn't do anything. A businessman who wants to make some money should open a small brewery and sell the beer at a buck a beer. Eventually Molsons or Labbatt will buy your business like Lakeport, and you will make big bucks. Stop complaining and start buying the few comnpanies out there that offer beer at a dollar.
Posted by: Peter | Apr 22, 2021 4:18:51 PM
Who in their right mind drinks Lakeport anyway? Swill.
That said, why do people put up with the insane alcohol laws in this province? Drive a few hours to Quebec or New York and you get a better selection for less money. I remember visiting a large beer store in Japan and seeing Canadian beer for sale at prices which were only slightly higher than what we pay down the road from the brewery. This beer was on display alongside dozens and dozens of other international beers, from America, from Europe and from Asia, many of which are not availale in Ontario, even through the LCBO. Almost of of them, including the American beers, were cheaper.
That suggests to me there is something SERIOUSLY wrong with how we do business here.