Strikes at distribution centers could cause shortages at British Columbia pot shops

Workers at British Columbia’s only wholesaler and distributor of regulated cannabis products went on strike this week, making the province’s legal pot shops scramble to ensure they have enough product to keep their doors open. Workers at the British Columbia General Employees’ Union (BCGEU), which represents about 33,000 service industry workers, picketed four distribution centers operated by the BC Liquor Distribution Branch (BCLDB) on Monday in a bid to secure higher wages from their employers.

On Wednesday, the BCLDB announced that due to the lockdown, cannabis distribution centers will be temporarily unable to accept or fulfill orders, process invoices, or ship goods to the province’s licensed retailers.

“We sincerely apologize for this disruption and the impact it has had on your business,” the distributor wrote in a statement to stores posted on its website.

Provincial officials have been working on a plan that would allow cannabis retailers to accept shipments directly from licensed producers. But until the plan goes into effect, the BCLBD is the sole wholesaler and distributor for the province’s weed dispensaries.

“The BC Liquor Distribution Branch recognizes that the current work actions being taken by the BC General Employee’s Union may affect wholesale and retail customers,” the distributor said in a statement cited by CBC, adding that the BC Cannabis Store -Website also cannot fulfill or deliver customer orders.

“We do not know the extent of future job actions and therefore cannot speculate on wholesale customer stock levels, customer demand and buying behavior in this dynamic environment,” added the distributor.

Strike could lead to shortages and store closures

Cannabis retailers in British Columbia are left to speculate about the impact the distribution center strike will have on their business. Omar Khan, High Tide’s senior vice president of corporate and public affairs, said the company’s chain of canna cabana businesses faces impending shortages if the strike is not ended quickly, adding that it will have long-term implications for the regulated industry cannabis industry could have .

“Right now we are managing the situation by reallocating inventory between our British Columbia stores, but if the work action is not resolved within the next 10 days, we could face inventory issues,” Khan said. “We urge the BCLDB and BCGEU to resolve their dispute as soon as possible, as a lack of stock at licensed cannabis stores risks driving consumers back into the hands of the illicit market, threatening public health and much-needed revenue will be taken away from the treasury”.

Other retailers fear the strike will force them to close their stores until the industrial dispute is resolved.

“If it takes longer than two weeks, we’ll probably consider closing the store because there’s nothing for sale,” said Jacob Michalow, executive vice general manager at Marigolds Cannabis in Vancouver.

Vikram Sachdeva estimated his chain of seed and stone shops currently has an adequate supply of produce but said the situation could change in the event of a prolonged strike.

“I hope we can survive for a week or a little longer, but after that it will be very difficult,” Sachdeva said, adding he wished retailers were more informed about the labor measures.

“It was just a bit of a shock, and … now the question is how long will it take for them to supply us so we don’t run out of produce?” he said.

Sachdeva said he was concerned about having to turn customers away if he ran out of product and that medical marijuana patients would have trouble accessing their medications. He also raised concerns that customers disappointed by a lack of regulated cannabis will turn to the illicit market instead.

Jaclyn Pehota, executive director of the Association of Canadian Cannabis Retailers, noted that bars and restaurants are better able to cope with the strike because they can also buy product from private wineries and craft breweries when they can’t get goods from the distribution centers.

“We call on the government to investigate this,” Pehota said. “We want the same diversity in supply chains for cannabis retail.”

David Hurford, secretary of BC Farmers Craft Co-op, agreed, saying many consumers in the province are able to find illicit sources of cannabis when licensed dispensaries run out of supplies.

“We fully respect the union’s right to take these actions, but it is up to the government to put in place an emergency plan,” Hurford said.