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
Asking rent prices up 9.3% across Canada, Ontario sees only decline: report
A new report says the average asking rent for a home in Canada in April was up 9.3 per cent compared with a year ago, while a slight month-over-month increase was also recorded for the first time since January.
What is basic income, and how would it impact me?
Parliamentarians are considering a pair of bills aiming to lift people out of poverty through a basic income program, but some fear these types of systems could result in more taxes for Canadians who are already financially struggling.
'I may have some nightmares:' Man survives being bitten by 2 sharks in Bahamas
A man who was bitten by two sharks in the Bahamas said Thursday he's 'thankful that I'm here' while sharing his story of survival.
Magnitude 4.2 earthquake reported off Vancouver Island's west coast
A 4.2-magnitude earthquake was recorded west of Vancouver Island early Friday morning.
Mexico's president accuses press and volunteer searchers for missing people of 'necrophilia'
The administration of Mexico's president has accused the press and volunteer searchers who look for the bodies of missing people of 'necrophilia,' comments that drew criticism this week.
WATCH Expecting an interest rate cut in June? Don't bet on it after new jobs data
Canada's labour market rebounded in April, adding more than 90,000 jobs, a staggering number of new positions after four consecutive months of little change.
Out-of-control wildfire burning near Fort McMurray
As of 9 a.m. on Friday, the wildfire burning 28 kilometres southwest of the northeastern Alberta city was 25 hectares in size.
Prince William says wife Kate is 'doing well'
Prince William said on Friday his wife Kate was 'doing well' in a rare public comment about the Princess of Wales as she undergoes preventative chemotherapy for cancer.
'Irate male' assaulted Newfoundland officers with block of cheese, police say
Police in Newfoundland say patrol officers were assaulted Thursday by a "very irate male" wielding a block of cheese.