Cannabis Sector at Risk During the BCGEU Strike

Sent August 26, 2022

Dear Premier Horgan,

I write to you today on behalf of the Cannabis Cultivators of British Columbia (CCBC) a group representing cannabis growers across the province.

We wish to share serious concerns we have regarding the impacts the General Employees’ Union (BCGEU) strike is having on the nascent legal cannabis sector in British Columbia.

Public health concerns

Earlier this summer, you encouraged British Columbians not to buy illicit cannabis after the report, Chemical Analysis of Illicit Cannabis, was published showing that “almost all” illicit cannabis samples tested were contaminated with pesticides, mold, heavy metals, or other serious contaminants. As the strike continues to unfold, retail store shelves are emptying out, and consumers are turning back to the unregulated market. Public health is at risk every day of government inaction as consumers have no choice but to buy unsafe cannabis.

Emboldening the illicit market

Keeping the profits of cannabis out of the pockets of criminals working in the unregulated cannabis market is something licensed producers and retailers have been fighting for since the beginning. Unlike them, we are heavily regulated, over-taxed and operate on razor-thin margins, while they have well-established, sophisticated and robust supply chains. Our hands are tied as their operations thrive and have the potential to increasingly endanger our communities as a result of their illegal activities.

Economic destabilization

Last year, BC Liquor Distribution Branch (BCLDB) contributed $1.16 billion to help fund important services across the province—services we need now more than ever as British Columbians navigate serious economic uncertainties at home. People across the province are already struggling, and as a result of government inaction surrounding this strike, hundreds of retailers and ancillary businesses have already been forced to make difficult choices around closures putting many people out of work with thousands more jobs at risk.

This strike and the lack of a contingency plan on the part of the government has unleashed a domino effect of issues. It has put a spotlight on the ineffectiveness of a provincial monopoly on cannabis.

Without immediate intervention, the important public policy aims that legalization was meant to address will be dismantled in a matter of weeks. We have already lost the ability to provide a safe supply of legal cannabis to British Columbians, and each day government inaction continues, consumer’s trust and confidence in the legalized framework is eroding. Further inaction will bolster the illicit market and lead to closures, thousands of job losses, and even bankruptcy. The economic destabilization of a new sector and the risk to public health and safety that will result is in the hands of the government.

There are several potential solutions to alleviate this problem immediately:

  1. Declare cannabis delivery an essential service and develop an essential services plan
  2. Temporarily allow retailers to purchase from out-of-province distributors/boards
  3. Reinstate Direct Delivery and include all BC producers
  4. Temporarily stand-up third-party distribution services

We have deep supply chain expertise and would welcome the opportunity to have a conversation with you about re-establishing a safe supply quickly to market while respecting workers’ right to strike.

Please don’t stand by and watch the dismantling of this sector. We are trying to keep our businesses above water. The health and safety of our consumers is at risk. The underground will thrive. We will lose everything we’ve worked so hard to avoid.

Sincerely,

Cannabis Cultivators of British Columbia