Cannabis strike ends in BC – Cannabis | weed | marijuana

With the end of a strike by BC government employees, the legal cannabis market is no longer going up in smoke. Or is it? Sixteen days later, store shelves are empty while some stores have closed.

The major cannabis shortages in BC in 2022 were brought to you by the BC General Employees’ Union (BCGEU), a group of provincial workers representing BC’s government-run supply chain.

Fifty stores closed their doors and nearly 500 private sector jobs were at risk, according to the Retail Cannabis Council of BC (RCCBC).

During the strike, RCCBC chief executive Jaclynn Pehota told the National Post, “We’re going to see between 50 and 70 percent of private retailers in BC close their doors due to product shortages.”

Despite the end of the strike, industry experts don’t expect the market to return to pre-strike inventory levels any time soon.

BC cannabis strike ends

Photos courtesy of the BCGEU Twitter account

The BC cannabis strike began on August 15th and ended on the night of August 30th.

“The union’s ban on overtime has ended – effective immediately – and preparations are underway to dismantle pickets at BC liquor distribution facility locations,” the union said in a release.

On pickets outside liquor and cannabis distribution centers, the union demanded inflation-adjusted wages.

It’s a topic we’ve covered here before. But picketing against inflation shouldn’t mean removing cannabis users and risking private sector jobs.

Of course, a real anti-inflation, pro-living wage demonstration would see union members picketing outside the Bank of Canada.

Even with the modest “2% inflation target”, money loses half its value in just three decades.

As the BC cannabis strike ends, striking members may have gotten what they wanted. But they also achieved two counterproductive goals to the union’s goals.

First, people recognized the fragility of a cannabis supply chain that relies on a single monopoly dealer – run by the government, no less.

Second, it sent consumers back to the old market and boosted BC Bud.

Time to end the provincial monopoly?

In Ontario, the cannabis shortage was not the result of a strike, but of a cyber attack. These bottlenecks prompted the Ontario Chamber of Commerce to publicly denounce the state monopoly and promote a more market-based solution.

“We have suggested from the beginning that we need retailers and growers to be able to have a direct relationship with each other,” said Daniel Safayeni, vice president of the Ontario Chamber of Commerce and chair of the Ontario Cannabis Policy Council (OCPC.)

“Given the current supply halt issue and cyber hack vulnerability, we see why it is important not to hedge the province’s bets on a single government-led entity.”

BC Bud wins even if cannabis strike ends

How popular is the cannabis legacy market?

With the BC cannabis strike ending, the only clear winner is BC Bud.

Estimating the size of the BC Bud market has always been difficult. Some estimate it accounts for 30 percent of the BC cannabis market, while others say it’s higher.

Of course, an indirect way to determine the size is to look at the popularity of the legitimate market. Despite BC’s affinity for cannabis, they rank 4th in recreational cannabis sales, behind Ontario, Alberta and Quebec.

Since this statistic measures legal sales, it can be deduced that many BC consumers are still shopping in the legacy market.

Provincial authorities and legal retailers recognize that legalizing cannabis in BC has been an uphill battle

Many consumers are happy with their growers, cannabis genetics and low carbon footprint.

Compared to the pharmaceutical grade irradiated cannabis that has to be excessively wrapped in plastic containers and shipped across the province (or country) before it even makes it to a legal outlet.

But let’s not forget what happened here.

Government employees complained about inflation without understanding the root cause. Blaming their employer, the taxpayer, they ended up holding BC’s legal cannabis industry hostage.

This then sent consumers back to the BC Bud market, where cannabis sales rightly belong.

The dissolution of the wholesale cannabis monopoly is the only logical conclusion here. Hopefully this strike was a wake-up call for BC cannabis entrepreneurs and consumers.

*Note: An earlier draft of this article was published in error this morning. We apologize for any inconvenience or misunderstanding this may have caused.

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