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Lowman Henry
Lowman Henry

Lincoln Blog

by Lowman S. Henry


White Flag Flies on Liquor Stores


August 10, 2012

Has the Corbett Administration surrendered on liquor store privatization?

Word today is the United Food and Commercial Workers Union has agreed to a new three-year contract with the Commonwealth. Reportedly, the contract requires any entity taking over liquor operations to hire state store employees at contracted wages.

That, of course, would be a gigantic disincentive for any business looking to buy a liquor store license should a privatization bill actually pass the union-dominated General Assembly.

Impact of the contract would be to devalue a liquor store license given that any private entity would have to pay inflated union wages and benefits until the new three year pact expires. With higher labor costs, the licenses will be worth less because the profit potential is smaller.

This continues a disturbing pattern of the Corbett Administration giving into organized labor rather than taking a stand to change the underlying fiscal dynamics of state government.



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