The 18-month strike at Société québécoise du cannabis (SQDC) stores has officially ended.
26 Stores Impacted
Canadian Union of Public Employee (CUPE) members with the SQDC had been striking for over a year. CUPE 5454 is the largest union in the SQDC and was negotiating for wages benefiting cannabis store workers. 26 SQDC stores are represented by CUPE and 24 of the branches were affected by the strike.
CUPE Votes to End Strike
On November 14, CUPE announced that all 26 SQDC outlets voted in favour of a conciliator’s recommendation presented to the parties to resolve the conflict. The members of CUPE 5454 voted at a special general meeting to bring an end to the 18-month strike.
“Our members decided to fight to the hilt to get better working conditions and wages on par with those paid by other Crown Corporations. We set the bar high and cleared it. We’re proud of our success that we owe to the solidarity, combativeness, and determination of our members,” says David Clément, president of CUPE 5454.
The agreement that both parties agreed upon is for a period of five years.
Wage Increases
The wage scale of cannabis advisors was completely reviewed and includes fewer wage steps along with a higher hourly wage for new hires. Starting in 2024, the latter will be paid $21 an hour.
For 2025-2026 and 2026-2027, the wage rates will be increased in accordance with the general parameters negotiated by public sector unions. CUPE anticipates that their wages will be between $21.60 and $25.45 an hour.
Other improvements to the contract include reduced precarity for workers due to improved schedules and hour guarantees.
“Our members’ acceptance of the conciliator’s recommendation allows us to emerge from this crisis with our heads held high. These recommendations include an improved wage scale and settlements of all disputes. We now have to sign these new contracts which, once signed, will take effect and remain in force until March 31, 2027,” adds CUPE union representative Daniel Morin.
SQDC Reacts
The SQDC says it will collaborate with CUPE to ensure that the return to work of teams as well as the gradual resumption of normal opening hours takes place in a ‘harmonious and optimal manner.’ It is expected that the normal resumption of store opening hours could take place over a few weeks. Schedules will be posted on www.SQDC.ca.
SQDC Generates $25 Million in Q1
Shortly after the strike ended, the SQDC released its second quarter financial results reporting a net income of $24.9 million for its business operations up from $21 million in Q1.
There was an additional $51.2 million in tax revenue from the consumption and excise taxes, meaning the SQDC generated $76.1 million for government. This amount is remitted to the government and part of it is reinvested in the prevention of cannabis use and research.
Q2 Highlights
The SQDC’s overall sales from June 18 to September 9, 2023, totalled $151.7 million, compared with $139.1 million for the same quarter of the preceding fiscal year.
The company legally sold 27,498 kg of cannabis during the second quarter. The store network sold 25,727 kg of cannabis for a total of $142.3 million while online sales reached 1,771 kg of cannabis for a total of $9.4 million.
The number of transactions completed during the quarter rose to 3.6 million. Net expenses amounted to $23.8 million or 15.7% of sales.
The SQDC currently has 98 stores, compared with 90 at the end of the second quarter of its preceding fiscal year.
Cannabis Usage Down in Quebec
Earlier this fall, preliminary survey results from the Quebec Cannabis Survey showed that cannabis usage is down in Quebec. The province surveyed 13,209 individuals between February and July 2023 to measure changes in cannabis use in Quebec. It found that the proportion of people who used cannabis in the previous year decreased from 19% in 2022 to 17% in 2023.
But unlike the rest of the province, cannabis use was slightly up in Montreal from 17% in 2018 to 23% in 2022 and 2023. The study also found a notable transfer from the illicit to the legal market in Montreal over the last few years with 68% of respondents purchasing cannabis from the SQDC in 2022 compared to 46% in 2019.