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: Duke Nukem | Apr 22, 2021 9:04:00 AM
It's always better to support large corporations ahead of local businesses. As long as Labatt keeps making Lakeport I'm happy. Maybe if those 143 people got educations they wouldn't be stuck working at a brewery doing unskilled labor and now out of jobs. Serves them right.
Posted by: Dave Carter | Apr 22, 2021 9:22:49 AM
I am always for the individual over the faceless corporate rat. As for the comment that if those 143 people had educations they wouldn't be stuck in a brewery, that's a dumb statement. There are many people with educations, including business and engineering, who are out of work now. Education is no guarantee of employment anymore. In fact, the more highly educated a person is the longer their unemployment may be due to specialization and how the job market is flooded with some degrees.
Posted by: JamieD | Apr 22, 2021 9:23:36 AM
You honestly just did not say that? Wow, who the f%# are you to say serves them right? You have no idea what these people endured in the early years of their lives. There are all kinds of scenarios why peopel don't all go to univeristy. I guess you grew up with the silver spoon and had everything shoved up your ace your whole life. Do you actually thihk that if all these people had university educations you would be getting Lakeport as cheap as you get it? Lol.... some people I swear have nothing but fart gas in there heads!
Posted by: ken b | Apr 22, 2021 9:37:52 AM
hmmmmmmmmmmmm labatts has done this crap before , i for one stopped buying their product yrs ago. i've seen them pull out equipment n leave people in their levy before. i put lots of time n equipment into lakport when they were starting up n when P C products fluristed in there. LABATTS just cant cope with sumone wanting to put another product out there for the everyday person . besides them n molsons all charge why to much even with the outragous taxes they(labatts) are the most pricy for average not mention rank beer.
Posted by: DaveG | Apr 22, 2021 9:41:44 AM
Duke is an obvious simpleton... I wouldn't put much stock in his opinion.
As for Labatts... What an arrogant, corrupt, excuse for space. Why would a company spend $201 million aquiring another company only to close it down in less than 3 years? Hmmmm... Smart investment?
Its all about killing the competion - The "capatlists" like to make us think we need a free market, when that's really the last thing they want. What they want is as much control of the market as possible.
Oh, and did you happen to notice how much of that $201 million the ex-CEO of Lakeport pocketed? A cool $40 million... no wonder she has such a sweet smile.
Posted by: sam y. | Apr 22, 2021 9:43:33 AM
Obviously there are always two sides to every story. I feel for the laid off workers. It is their livelihood. They need to work. Understood. I also understand that a business needs to do what is best for it's own interest also. In defence of Labatt's, they did offer the money to anyone coming in, other than a brewery, and giving first chance to the laid off workers. They put those conditions on that monetary incentive to any business. That is a huge incentive. They didn't have to even do that, but in reality if someone had a business, would they do any different? Let's be honest about that. For example, if one of the laid off workers opened a small company and it started growing or they decided it would be more efficient to change locations, would they keep that equipment there for a competitor to use?
I just hope it works out for everyone involved. These things are never easy. It's a business when it is all said and done.
Posted by: John Smith | Apr 22, 2021 10:39:38 AM
I would like to say one thing this wouldn't happen in the US. The rules and laws in the US around this type of behaviour exhibited by Labatt's (which is not a canadian company for the record) would not be allowed. Labatt's clearly purchased the plant with the intent to destory competition, where is the Canadian Government?
Posted by: Lisa | Apr 22, 2021 10:40:28 AM
Well guys, there's not much to say here. I feel for those who lost their jobs, however, I"m with Duke, partially on this one. Get an education. It is true that an education doesn't guarantee a job, however, it DOES give a person many more opportunities.
The other thing that does not appear to be thought of here...why can't some of those people who lost their jobs, pick up and move to London??? It's not easy, but it IS a possibility.
However, it's not up to Labatts, (or any company), to do any more than what they are doing--a business. It's up to the individual adult to supply themselves with a job.
Posted by: Mikem | Apr 22, 2021 10:44:22 AM
This problem is deeper than a big brewery havings its way. One of the problems is still our outdated beer laws. By law Labatts and Molson control the Beer stores in Ontario, unionized employees earning $20 an hour have to sell beer the public . There are laws in Canada that limit the price of beer - in Ontario a 24 case cannot be sold for less than $24!!
Competition in Canada? in the beer and liquor industry - forget it. Its all government controlled.
Yet a few miles away in New York state, you can buy beer in Walmartand every other grocery store not just US beer but Canadian, Blue etc in 30 packs for $18!! sold by clerks making $8 an hour.
Competition is allowed. You can open a small brewery and sell your beer locally or anywhere you want and charge any price that the market permits.............
NOT IN CANADA..............The government sets the beer prices (minimum price) discourages competition.
Posted by: FRED | Apr 22, 2021 10:51:44 AM
hey guys,
look at the new numbers out. domestic beer is taking a hammering. why?? it is crappy beer. as long as it is domestic it may be ok for the short run but it is on the way out.
give me an imported beer anytime, and i do not mean MGD or anything bottled locally. german, belgium, or danish beer is by far better and been around longer.
make no mistake why wine is also growing. poor beer product siphons off somewhere especially for the ladies.
fred
Posted by: Will | Apr 22, 2021 10:55:06 AM
I am very dissapointed in those of you who say to get an education to those 143 workers. Hamilton is a city founded on the basis of hard labour and if your parents did not than i am certain your grandparents did! to those 143 people i have the utmost sympathy as some of them have been at this job for 18 years! Lakeport is a HAMILTON beer, i will not buy it or any labbatt product for that matter if they do not sell the brewry as it is to a brewer who is attempting to save hamilton jobs. Something needs to be done about the beer and lquor markets in Ontario and it's up to the people to create this change. Instead of complaining on here any hamiltonian who does not wish to see 143 jobs lost in the city should be calling our MP's and the people of labbatt...If enough people boycott they will listen.
Posted by: Hamiltongirl | Apr 22, 2021 10:56:29 AM
WOW...funny how people just go and assume that it's lack of education. Clearly these people do not live in the area or work in the area. Hamilton has always been a blue collar town and that doesn't necessarily mean that people are uneducated!!! It's ridiculous and ignorant for someone to make a comment such as that! There are many skilled tradespeople in Hamilton out of work right now due to the massive decline in manufacturing and with thousands of jobs being lost in Hamilton how can people be so insensitive. Moving to another city is not always viable for people due to obligations concerning family. I know where of I speak as my partner is a highly skilled tradesperson but when you apply for 1 position and there are approximately 1000 people applying for the same position...it really doesn't matter how much education you have then, it's more like winning the lottery!
I am just so flabbergasted that people would post such insensitve comments and generalize about people they don't know and it is painfully obvious that the uneducated are the ones making those ignorant comments!
Posted by: jaybird24 | Apr 22, 2021 10:57:28 AM
Wake up Canadians!!
As someone said above.............we don't have competition in the beer and liquore industry.
The government controls and restricts the sale, price and competition. The large breweries run the beer stores and it can only be sold in THEIR stores at their prices...........NO COMPETITION
We are the only country in the civilized world that doesn't allow free competition of the sale of beer.
US, Europe, the UK they all allow the sale of beer,liquor in grocery stores, corner stores etc
What is wrong with us??
Why do we let the government and special interest groups control us like this.
Things will never change because the big breweries have the monopoly and the artificial prices, the government rakes in the taxes, special interest groups like MADD like to make us all feel guilty.
WAKE UP CANADIANS
Posted by: oldstr | Apr 22, 2021 11:01:35 AM
Yes, if you are educated with a marketable knowledge, or if you have any kind of marketable skill you have a good chance that you will most of the time have a job. The only people who have guaranteed job for life, with wages, benefits, retirement pensions are the public servants.So forget about beer brewing and join the forever growing number of public servants.
Posted by: southerner | Apr 22, 2021 11:06:27 AM
You've hit the nail right on the head!!
The problem is the lack of competition in the beer industry.
The government (provincial) controlling the Price, where it can be sold and who can sell it.
How could a small brewery survive in Ontario? they are not allowed to sell their beer cheaply the government has set a minimum price..........not the industry!!!
Labatts and Molson(both foreign beer companies) control the Beer Store!!! through the provincial government.
Clerks selling beer making $20 plus and hour?
Why do we put up with this??
Posted by: Frank | Apr 22, 2021 11:17:28 AM
Corporations have every right but the citzens of Hamilton have every right to choose another beer, or better yet start drinking wine, its local too!!!! Great international exposure campaign .... the day they replaced a beer with a half litre in the lunch box .... now thats a makeover!!
Posted by: Mia | Apr 22, 2021 11:39:45 AM
This is for you DUKE - anyone writing something so ignorant in todays society is either an idiot or a spoiled baby who has had everything handed to him, and guess what? - IS NOT HAPPY!!!! go figure
Everyday working people will continue to be the ones affected by corporate decisions in this industry.
The government needs to get its head and hands out of the pockets of these industries so that they can thrive and maybe, just maybe hire people, make beer affordable etc etc.
Posted by: J Kaplan | Apr 22, 2021 11:41:43 AM
To the Duke, you are very insensitive, and very uneducated as well as a complete Pri**k. You can't know the situations as to how and why these unfortunate employees work at this brewery, some might have been laid off, some might be new Canadians, or other circumstances, its people like you who run these company's, all they think about is profitability. I myself work for a company that says they care about the employees, but it is very clear they don't and only care about profits and expansion of the company. I know for a fact that if in a similar situation, they would probably do the same exact thing to their employees, I myself am educated, but was laid off, for similar circumstances as Labatts is doing. Now with that said profitability is key to any business's success, but they can't exclude another brewery from taking over the lease and operating in their former location, but they an and probably will continue to maintain the lease just so that any competition will not operate their with their former employees. It is very sad that this kind of corporate behavior goes on every day, unfortunately I'm sure they had their reasons for moving to London, and probably one day they will be compelled to move operations from London, doing the same damn thing to those poor employees. For this kind of behavior, i as of this minute will not drink any Labatts products, including anything they are licensed to bottle and brew in Canada. I will instead drink Molson or anything else but Labatts. I will boycott them completely, and also make sure that this story is well know to everyone i know and they know, anyone who feels the same way should do the same thing. this is how you show big company's, they can't behave like this, its all about numbers and trust me if enough people boycott them they will loose big profits. They will finally get the message.
Posted by: Razor | Apr 22, 2021 11:53:35 AM
Well Duke obviously posted that comment to get reaction "moron" It is very unfortunate if the shoe were on the other foot that idiot would not be flapping his gums about education. I also noted one person posted contact your mp's well good idea but if your mp is Terry Whitehead don't bother he will do nothing for you as he does nothing but collect a paycheque and make the number 1 position in hamilton as the biggest spender of tax money in hamilton wentworth, atta boy Terry go get em...
Posted by: Darlene | Apr 22, 2021 11:54:25 AM
I think that most of you have never been out of Ontario, Ontario is not Canada. Quebec is not regulated and you can buy beer at corner stores easily as well as wine. Ontario is backward that is for sure and too regulated. I have a brother in law working at a brewery that is very educated ... and has to do testing on the batches to make sure we don't get poisoned. Clearly Labatt's is trying to control the industry and our government should step in so we have a choice.