Labor Day in the Marijuana Industry

Cannabis experts are divided between two opposing opinions on whether the industry is paying a living wage. Considering so many factors, experts have formed their opinions based on various market data and metrics. With metrics such as cost of living, base salary, and income statements evaluated by these cannabis experts, among others, these sources have made their points for both sides of the divide.

Differences of opinion on the living wage

Based on first-hand experience and available data, leaders at the leading cannabis staffing companies have differing opinions as to whether the industry pays a living wage.

The Vice President for Partnerships at Vangst, Kelsea Appelbaum, believes that wages are quite the standard. Reviewing the company’s data, she confirmed that the average hourly wage for roles like extractors, warehouse workers, growers, and budtenders ranges from $14 to about $30 an hour.

Applebaum also shed light on the company’s salary guide for 2021. She pointed to roles such as lab worker ($16 to $21 per hour), budtender ($14 to $25 per hour including tips), and production technician ($14 to $30 per hour). hour) there. as examples of variations in the wage scale.

The CEO of CannabizTeam, a temp agency, Liesl Bernhard, referred to her company’s annual salary report and concluded that a more significant percentage of temp workers make above minimum wage. According to the company’s report, salaries in the cannabis industry increased by 4% in 2021. That same year, senior executives in the cannabis industry saw their salaries increase by more than 10%.

Bernard added that around 40% of workers are offered a full-time position in the cannabis industry within six months on the job. However, she did not provide an overview of full-time salaries, but reported that most full-time offers come with additional benefits and insurance.

oppositional points of view Kelsea Appelbaum and Liesl BernhardBernard’s conclusions presented conclusions, not data.

The co-founder and CEO of THC Staffing Group, Danielle Schumacher, thinks cannabis companies aren’t raising workers’ wages to meet the ever-rising cost of living. She confirmed that she has seen wages and hourly rates fall in 2022 as companies also replaced higher-paid workers with lower-paid ones. Schumacher went on to say that cannabis companies have stopped offering benefits, and even if they do, they are fewer than what they used to offer.

Meanwhile, Appelbaum announced that a forthcoming Vangst whitepaper is available with a full report of the 2021 data. She said the report would show that survey respondents agreed that cannabis benefit packages meet, and sometimes even surpass, their previous non-cannabis position. According to the report, 20% of respondents agree cannabis benefit packages were better than their previous job, while 40% agree the benefits are equivalent to that last position.

The Vice President of People and Strategy at Work, a human resources and cannabis payroll platform, Jojo Benje, without citing any data, confirmed that workers in cultivation, pharmacy, and manufacturing roles are not earning wages that cover the rising cost of living. Benje warns cannabis companies that failure to pay living wages could halt their companies’ progress in the long run. He added that no business would function properly without happy employees.

Numerous points considered

Assessing the sources’ rationale, it can be said that industry and market comparisons have led to most of their conclusions. According to Vangst’sVangst’s Applebaum, while an hourly wage of $14 cannot be considered a living wage in Los Angeles or Denver, it can be considered a living wage in other low-wage states.

A report by CannabizTeam evaluated several factors affecting pay; Factors such as candidate experience, company size, and location served as primary factors. The report estimates several markets and wage changes over the last few years. For example, Washington, DC (40.1%), Stamford, CT (46.9%) and San Francisco, CA (+64%) topped the list of salary increases in the cannabis industry. St. Louis, MO (-9.6%), Tulsa, OK (-11.6%) and Springfield, IL (-14.2%) are states that resulted in pay cuts over the same period.

Bianchi & Brandt’sBrandt’s Nico Pento, Esq. also believes that the regional cost of living is crucial. According to Pento, there are several misconceptions about wages and salaries in the marijuana industry that organizations like the United Food and Commercial Workers International Unionalongside other unions, are trying to exploit while the industry is still in its infancy.

UFCW International petitioned federal and state legislators in September 2021 to ensure the new and growing cannabis industry provides quality, high-paying jobs for workers. The group referred to a report by one Economic Policy Institute which assessed that unionized cannabis workers could earn approximately $2,810 to $8,690 more annually than non-union professionals. Pento went on to say that operating costs are a significant concern as cannabis companies face higher risks related to licensing, taxes, regulation, and compliance. He added that the cost of doing business for cannabis companies is high, especially when compared to other sectors.

The co-founder and CEO of Viridian Staffing, Kara Bradford, agreed with Pentos’ claims and also pointed out that cannabis companies face additional costs and taxes compared to other sectors. However, the income statement has tried to be positive as it encourages companies to look beyond the bottom line. She reiterated that keeping the cost of living in mind when evaluating labor costs would be a great development for companies.

Bradford offers cannabis companies a helping hand, advising them to monitor living wages in their states using the Living Wage Calculator he designed Massachusetts Institute of Technology (WITH). This calculator breaks down US living wages by county and household size with a maximum of two working adults. Branford believes the calculator will bring significant benefits to companies looking to design a compensation plan and payment policy.

Conclusion

Similar to other debates surrounding cannabis, the answer to the question is far from definitive at this point. Hopefully enough data will present itself in the future and information about cannabis companies that may or may not offer a living wage is based on proven facts and not mere opinion.

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