B.C. cannabis stores grapple with delivery stoppage as BCLDB workers go on strike
British Columbian cannabis stores are bracing for emptier shelves after a strike stopped the province's pot distribution centre from shipping out product.
The British Columbia General Employees' Union (BCGEU), which represents about 33,000 public-service workers across B.C., set up picket lines at four BC Liquor Distribution Branch (BCLDB) wholesale and distribution centres Monday.
Retail liquor and cannabis stores are not part of the strike launched over wages, but the cannabis division of the Burnaby customer care centre is part of the job action, the union said.
In response, the BCLDB announced its cannabis distribution centre will not accept or ship product, assemble orders, or process invoices or purchase orders.
“We sincerely apologize for this disruption and for the impact to your business,” the BCLDB said in a note to stores published on its website.
The province was preparing to allow cannabis stores to accept direct deliveries of product from licensed producers long before the strike began, but until those deliveries start, stores have no choice but to get their products from the BCLDB.
Vikram Sachdeva estimates his B.C. chain of Seed and Stone stores has a good supply of products right now, but that could quickly change, if the strike drags on.
“I'm hoping that we can survive for a week or a little bit longer, but beyond that point, it's going to be very difficult,” he said.
Sachdeva wishes stores were notified earlier about the delivery stoppage, so they could have stocked up on products.
“It just came as a bit of a shock and...now the concern is how long before they start delivering to us so that we don't start running out of products?” he said.
He added he will be disappointed if he has to turn away consumers for lack of product, especially if they are seeking cannabis for medical reasons.
He also fears consumers may turn to the still popular illicit market, if they can't find cannabis stores with stock left.
High Tide Inc., which is behind the Canna Cabana chain of stores, has similar worries.
“For the time being we are managing the situation by re-allocating inventory between our British Columbia stores, but if the job action is not resolved within the next 10 days, we could face inventory issues,” said senior vice-president of corporate and public affairs Omar Khan, in an email.
“We urge the BCLDB and the BCGEU to resolve their dispute as soon as possible, as lack of inventory at licensed cannabis stores risks driving consumers back into the hands of the illicit market, which will endanger public health and drive much needed revenue away from government coffers.”
His remarks come a week after the Ontario Cannabis Store (OCS), the province's pot wholesaler, temporarily stopped making deliveries to marijuana shops.
The stoppage of deliveries to Ontario's 1,333 cannabis stores stemmed from an Aug. 5 cyber attack affecting Domain Logistics, the company behind the OCS's third-party distribution centre.
The OCS has restarted deliveries again, after an investigation into the matter, but temporarily capped the amount of product pot stores can order and extended its delivery window to work through the backlog.
Tamy Chen of BMO Capital Markets warned both B.C. and Ontario's recent troubles could weigh on the sector's performance.
“We caution there may be short-term disruptions on Q3/22 sales from a cyber attack in Ontario and labour strike in B.C.,” she said in a Tuesday note to investors.
This report by The Canadian Press was first published Aug. 17, 2022.
CTVNews.ca Top Stories
BREAKING Iran fires at apparent Israeli attack drones near Isfahan air base and nuclear site
An apparent Israeli drone attack on Iran saw troops fire air defences at a major air base and a nuclear site early Friday morning near the central city of Isfahan, an assault coming in retaliation for Tehran's unprecedented drone-and-missile assault on the country.
NEW After hearing thousands of last words, this hospital chaplain has advice for the living
Hospital chaplain J.S. Park opens up about death, grief and hearing thousands of last words, and shares his advice for the living.
American millionaire Jonathan Lehrer denied bail after being charged with killing Canadian couple
American millionaire Jonathan Lehrer, one of two men charged in the killings of a Canadian couple in Dominica, has been denied bail.
Ontario woman loses $15,000 to fake Walmart job scam
A woman who recently moved to Canada from India was searching for a job when she got caught in an online job scam and lost $15,000.
Prince Harry formally confirms he is now a U.S. resident
Prince Harry, the son of King Charles III and fifth in line to the British throne, has formally confirmed he is now a U.S. resident.
Colin Jost names one celebrity who is great at hosting 'Saturday Night Live'
Colin Jost, who co-anchors Saturday Night Live's 'Weekend Update,' revealed who he thinks is one of the best hosts on the show.
Ottawa to force banks to call carbon rebate a carbon rebate in direct deposits
Canadian banks that refuse to identify the carbon rebate by name when doing direct deposits are forcing the government to change the law to make them do it, says Environment Minister Steven Guilbeault.
DEVELOPING G7 warns of new sanctions against Iran as world reacts to apparent Israeli drone attack
Group of Seven foreign ministers warned of new sanctions against Iran on Friday for its drone and missile attack on Israel, and urged both sides to avoid an escalation of the conflict.
Some Canadian families will receive up to $620 per child today
More money will land in the pockets of some Canadian families on Friday for the latest Canada Child Benefit installment.