Now this, I don't understand one bit. A union representative of the union which oversees the workers at Pennsylvania Liquor Stores says increased sales will lead to layoffs and fewer jobs.

To understand this logic you have to know that Pennsylvania's Liquor Stores are all owned by the Commonwealth of Pennsylvania. This is both good and bad. As a free market supporter I'd like to see the sale of liquor be opened to private stores, but I also see that in some cases large scale management, particularly when it comes to bulk buying power can be an advantage.

From the Penn State Daily Collegian:

A union leader in the state-owned liquor store system said he is concerned that increases in both liquor sales and crime in the State College area may result in store employees losing their jobs.

"If their first priority is making money and not public safety, then the state should not be in this business," Cloonan said, citing increased crime statistics in State College that coincide with 17 percent higher liquor sales.

In the mid 90s the PLCB was almost privatized. Stores were losing money, sales were down, and prices and product selection was horrible. After the privatization measure was defeated in the General Assembly the PLCB moved to improve their stores. They brought in outside consultants and people from the for-profit business world to introduce a modern business model to the Liquor Stores. They went from "State Stores" to "Wine and Spirits Shoppe" The improved their selection of fine wines and spirits and recently opened select stores to Sunday sales and opened three stores inside food markets.