Cannabis stores across British Columbia are facing a difficult situation as the ongoing strike by the British Columbia General Employees Union (BCGEU) has caused a shortage of product and layoffs. Industry experts fear that the strike could cause lasting damage to the fledgling sector and embolden a black market that was never fully eliminated in a province long known for its “B, C”. Kush Klub, located at the heart of Commercial Dr., is one of many businesses that rely on secure access to cannabis. As a result of the strike, consumers are returning to the unregulated market, and at least 50 stores in B, C.
have closed their doors or drastically reduced their working hours as shelves run out. The layoffs have had an immediate impact on businesses like Mood Cannabis Co. in Nanaimo, which has been forced to fire 17 workers from its two locations. Beyond the economic concerns, the strike risks bringing consumers to the black market.
This was evident at an unlicensed marijuana kiosk operating on Main Street and Terminal Avenue in Vancouver on Friday. The Liquor and Cannabis Distribution Branch has restored “very limited access to direct supply, representing about 50 products”, according to Jaclynn Pehota, Executive Director of the B, C Cannabis Retail Council. In the long term, he said the government needs to allow a more diversified wholesale market for licensees, so they can't get caught in a similar bottleneck. Burb, which has five outlets, closed one of its two stores in Port Coquitlam and another in Port Moody, leaving 20 to 25 people out of work. The remains of the inventory from those two stores are being transferred to their other store in Port Coquitlam.
Business hours have also been reduced at the Burb store in Vancouver and another on Vancouver Island. Clayton Chessa, co-founder and chief operating officer of Burb, said that if the strike is not resolved soon, or if there are any alternative solutions to be able to obtain cannabis only through the warehouses of the alcoholic beverage distribution branch, the other stores will also close. The Ministry of Finance and the Ministry of Public Security have yet to comment on the issue. Meanwhile, producers who were supposed to start early last week right when the strike began are now paralyzed. Cannabis retail representatives said that the biggest concern is that they have worked hard to build trust and acceptance in the legal cannabis sector over the past four years. Now, that is being destroyed and customers are more than likely to turn to the illicit market again. THC Canada, which has a store on Main Street in Vancouver, had just received a delivery of cannabis before the strike so they are in a slightly better position than others. But if the strike continues for a couple of weeks, all stores will close. Negotiations between the BCGEU and the provincial employer resumed earlier this week.
When asked to comment on the knock-on effects on the cannabis industry, union spokeswoman Jasleen Aora said they were currently under a media blockade. The parties are trapped in a high-risk negotiation, and the BCGEU is likely to set the standard for 400,000 public sector workers whose contract ends this year. The province is trying to minimize the increase in total cost of these settlements in its annual operating budget. The union appears to be looking for wage increases to cover inflation, which now stands at eight percent in Canada, far from the 3.5 percent per year offered by the province. Private liquor stores, bars and restaurants can source beer and wine and, to a small extent, liquors such as vodka and gin directly from local producers. However, cannabis retailers can only purchase their products directly at government alcohol wholesale and distribution centers in Delta, Richmond, Kamloops and Victoria. It's not clear what it will take to reach an agreement between BCGEU and provincial employer but it's clear that this situation could have long-term consequences for British Columbia's cannabis industry.
