B.C. cannabis stores lay off staff as shops run out of product

B.C. Cannabis stores are closing and laying off staff as retailers run out of product due to the BCGEU strike. As @KierJunos reports, industry leaders expect 70 per cent of private shop shelves to be empty by next Tuesday.

The fallout from the BC General Employees’ Union (BCGEU) strike continues as cannabis stores are now closing shop and laying off staff because they don’t have product to sell.

Oana Cappellano, president and co-founder, Eggs Canna Group, says the supply issue will be hurt almost everyone in the industry.

“We hire about 5,000 employees. Every one of them will be affected by this, and negatively impacted by this,” said Cappellano.

One Eggs Canna shop took CityNews into their stockroom, which had nothing left to sell except a few vape cartridges and edibles.

Their shelves would typically be completely full, but right now they are bone dry.

“Typically what we would have is that we’d have two rows deep. … but [now] everything is just gone,” one staff member said.

This staff member and his colleagues are planning out their last grocery runs and rent cheques because they’re getting laid off.

“So our staff and managers are definitely feeling the brunt of this. You know, we’ve had to lay off over 30 employees,” said Cappellano.

BCGEU members have been striking since the Aug 15. for cost of living adjustments for their pay and they’re back at the bargaining table with the government.

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Cappellano says she feels heartbroken for the industry and consumers as the strike drags on.

“We have been screaming it from the rooftops that with the existing distribution model, if there are any interruptions because everything is funneled through the liquor distribution branch, that there will be issues when it comes to product,” explained Cappellano.

Jaclynn Pehota with the Retail Cannabis Council of BC says the industry is beholden to a government monopoly unable to buy direct like their colleagues in the hospitality industry.

“We are anticipating that approximately 70 per cent of private retailers will have empty store shelves by Tuesday next week,” said Pehota.

Cappellano says they’ve already started to close down their stores.

“We’ve had to close our store, in Kelowna. We have closed our commercial location.as of tomorrow we will be closed at our final location, which is the East Hastings Eggs Canna,” said Cappellano.

Pehota says she’s supportive of the job action the BCGEU is taking and it’s a failure of the government to have a plan to protect the industry and consumers who she expects to increasingly access the black market.

“We get closer and closer and closer to the closure of, you know, literally hundreds of businesses. And I would say that, you know, we’re in a position here where the unregulated market is more than happy to fill this gap,” said Pehota.

CityNews has reached out to the B.C. government for comment.

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