Is big cannabis exploiting the gig economy, compromising workers’ hopes and rights?
My first encounter with temp work was in the “licensed” cannabis industry. Some of my colleagues, who wore the company logo and shared the same workload, turned out to be fleeting presences – they were temp workers, who were treated differently despite their similar contributions within the same company. The dividing line between my self and my temporary coworkers ran deeper than I thought, with something called “Misclassification”.
Corporate cannabis exploits this employment loophole through temp agencies to reduce labor costs, allowing a billion-dollar industry to strip workers of proper benefits and socio-economic growth. The gig economy, championed by Uber, offers flexible earnings but at the cost of vital benefits and labor rights — a model that might do more harm than good in a burgeoning industry like cannabis.
What is Misclassification of Labor Work
The term “misclassification” harks back to 1950s collegiate sports when the NCAA, facing a workers’ comp claim after a player’s death, coined “student-athlete” to sidestep financial liability for injured athletes. This strategy parallels the gig work tactics of today’s companies, which circumvent accountability and reduce costs at the workers’ expense. Per a Vox article from 2021:
The student-athlete designation denies players all sorts of other workers’ rights, such as compensation if injured on the job or the right to collectively bargain. “I’ve learned that that term really was created to deprive players of their statutory rights, and to kind of create this false narrative that they are amateurs,” Abruzzo said. (Walter Byers, the first executive director of the NCAA, admitted to engineering this narrative, but after retirement lamented his role in creating what he described as “a neoplantation mentality.”) https://www.vox.com/2021/10/1/22702807/ncaa-student-athlete-misclassification-level-playing-field
Temp and Gig Work in Cannabis
In the cannabis sector, burgeoning businesses capitalize on temporary labor as states legalize the industry. Positioning temp work as the gateway to a promising career, many companies provide false hope and rarely convert these temporary roles into full-time positions with benefits. These conditions pose risks, especially in dangerous roles like cannabis cultivation, where a lack of training due to high turnover increases accident rates. Consequently, this leads to a loss of valuable skills and institutional knowledge.
Gig and temp workers earn less than their full-time colleagues in traditional roles, and with the absence of benefits, that number falls even lower.
“In some cases, gig workers also have to pay twice as much in payroll deductions as part-timers, since their employer isn’t covering the other half. That means gig workers essentially have a 7.65 percent gig tax placed on them in the United States. Add to that no retirement savings contribution, no parental leave, no worker compensation protections … and you end up with a brutally low paycheck.” (Spoke; Forbes.com)
Without long-term work, learning valuable career skills becomes difficult, and can cause long-term losses for a company with ever rotating employees. Positions in cannabis cultivation and processing facilities are flat out dangerous by health and safety measures. With the required training and expertise in job safety and compliance not perpetually practiced due to constant employee over-turn, the likelihood of on-the-job accidents becomes much greater.
“Temporary workers have a higher rate of injury than traditional employees, reporting incidents between 36 percent and 72 percent more often than non-temporary workers” (lithub.com).
Moreover, this predatory approach disproportionately affects communities of color and low-income individuals, further compounding the injustices initiated by the war on drugs.
Temp Work, Offered With a Catch
Vangst, a leading recruitment agency, despite raising significant venture capital and claiming a high number of placements, has not disclosed how many temp positions transition to full-time jobs.
Vangst, active in job recruitment since 2016, has garnered over $35 million in venture capital as of 2022, with a hefty $19 million secured in early 2022. The company boasts of filling over 200,000 gig roles and 2,500 corporate positions, while currently advertising over 30,000 openings on their site. Despite these claims, concrete data on how many gigs convert to permanent, benefit-inclusive roles remains relatively undisclosed.
In fact, current and former employees of Vangst itself claim the company has the same problems as the rest of the industry: high turnover/firings, nepotism, lack of diversity, vague growth potential, investor-focused goals, no training, CEO in over their head, etc. (Glassdoor.com). This may not be surprising, since Vangst boasts working with notoriously anti-worker cannabis MSO’s like Holistic Industries, 4Front Ventures, Ayr Wellness, C3 Industries, Cresco Labs, Curaleaf, and High Level health.
Internal issues at Vangst mirror the wider industry’s instability, with high turnover and unsatisfactory employment conditions. These are indicators of an industry facing layoffs and downsizing, even as it claims growth and profitability.
With Vangst’s launch of GIGS, a new temp work platform, alongside its own staff reductions, the market is clearly pushing for high returns at the expense of fair employment practices.
A Caution Against “Student-Athlete” Exploits in Cannabis
Consider the sustainability and true potential of gig work in cannabis. Be aware of misclassification and temporary roles that rarely advance to permanent positions. License holders and workers need to protect their long-term interests in an industry that’s rapidly evolving but not always in favor of its workforce. A healthy workforce may be what is needed for striving cannabis companies to reach next level of stability and success!
