Beware the false promise of cannabis unions

This is a trigger warning for the poorly treated worker (I sympathize), the perpetual victim (grow up) and the unrequited Marxist (visit Venezuela).

Unions are aggressively trying to organize cannabis firms. Not surprisingly, they are enjoying some success.  Some executives are not exactly poster children for enlightened management nor is the sector known for being high payers or having vibrant cultures. 

Still, unionization is not the panacea for these ills.

A high percentage of cannabis firms (including hundreds of highly leveraged small businesses) are unprofitable. Blaming industry travails on management is a soothing balm but it doesn’t diminish a company’s financial vulnerability and the tens of thousands of jobs across Canada that are at risk.  These businesses can ill afford the higher wages that come with a union.

Furthermore, firms continue to struggle with getting their operating cadence right.  Union-imposed and restrictive work practices will reduce operational flexibility & agility and potentially worsen labour relations. 

A good case can also be made that unions act first in their interests (e.g., political and cause-related donations) before that of the employee and certainly not the industry.  And the irony of inviting in certain unions to a sector looking to distance itself from organized crime is not lost on many people. 
 
Union organizing efforts are getting more media coverage, often against the backdrop of legitimate worker gripes and investor shenanigans.  However, the issue is not always framed in a balanced and nuanced fashion.

Take the recent SNDL story.  I am not here to dispute the Alberta tribunal ruling nor do I believe that companies shouldn’t obey the law and not treat their employees fairly. 

But its important the story is put into context.  To be clear, I am neither an SNDL employee, supplier, or investor. 

Neither the company’s Board nor leadership directed what was harshly termed by the tribunal ‘intimidation.’ One unauthorized midlevel manager showing up at a library is hardly intimidation. On this subject, it is often the union employing unseemly pressure tactics against the company (e.g., CUPE vs the SQDC)

From what I know, SNDL is a competitively paying and enlightened employer, not a dangerous sweatshop.  They are also one of the only LPs to have offered equity to plant level employees through their long-term incentive plan.

SNDL also employs hundreds of workers in a small Alberta town.   In an over-built industry experiencing margin compression, we should not take for granted that their leadership has not explored selling its greenhouse or even leaving cultivation altogether. Becoming a union shop could force their hand. 

2023 is not 1923.  Let’s consider this issue honestly and sensibly.

#unions #workers #employeeengagement #unionization #SNDL