In this case, one of the large, multi-state cannabis vendors takes on an Illinois chapter of the Teamsters Union, over the usual issues of pay and benefits. The company’s employees feel they’re not getting enough of either.
So now, a year into negotiations, the workers have decided to walk out. An update from a local TV station:
Ascend Wellness employees go on strike, citing unfair labor practices
Labor disputes are nothing new, but it’s odd to see a commercial pot company involved. Then again, the pot business is a whole lot wealthier and entrenched than it once was, and labor issues tend to go with the territory.
This might be a good opportunity for a closer look at exactly how wealthy the cannabis industry has become, given the relatively short time since legalization became commonplace.
For instance: In the coming year, the cannabis industry in the U.S. is expected to approach $30 billion in annual sales. In terms of economic impact, that translates to a $123 billion contribution to the American economy.
Perhaps even more important politically, the industry now supports more than 410,000 full-time jobs.
There’s your loyal voter support. And the money needed for heavyweight lobbyists and campaign contributions.
Surprisingly, Michigan, not California, leads the nation in total cannabis sales. Not that there aren’t plenty of Michiganders lining up to buy pot, but I suspect the state’s prominence in the weed market has something to do with its location — folks from surrounding states who cross the Michigan line to stock up on cheaper cannabis.
That’s what happened in New Mexico, after all. Check out the traffic at the many pot emporiums on the Texas border.
Cannabis flower (“bud”) remains the single most popular product, representing more than 40% of purchases. Vaping and THC-infused drinks, however, are the fastest growing market segments.
And don’t worry, profit margins remain high, in the 50% to 60% range.
But the market for cannabis is much, much larger than Big Pot alone. In reality, illegal cannabis sales in the U.S. are estimated to be more than twice those of the legal sort — around $70 billion dollars annually.
The titans of Big Pot insist that if the government would only relieve them of burdensome regulations, they would quickly drive the black marketeers from the scene.
I doubt that. Revenue from illicit sales isn’t taxed. That’s a serious pricing advantage for the crooks. And their distribution networks are well-established.
Anyway, I expect we’ll see more confrontations between the industry and its workforce in future.
With all this money in play, the folks who do the work will surely demand a bigger slice of the pie.
