On June 1st, Amazon CEO David Clark set the cannabis world buzzing when he announced that Amazon’s 1.3 million plus employees will no longer be tested for marijuana, in order to get a job at the famous online retailer.
That was not all.
Mr. Clark went on to say: “because we know this issue is bigger than Amazon, our public policy team will be actively supporting ...federal legislation that would legalize marijuana at the federal level, expunge criminal records, and invest in impacted communities. We hope that other employers will join us, and that policymakers will act swiftly to pass this law.”
Amazon is the third largest employer on the planet, outpaced only by “Walmart” and “China Petroleum & Chemical Co.” Until his recent divorce, Amazon founder Jeff Bezos, was the world’s richest person. Amazon’s business and political reach permeates most every aspect of American life.
Reaction from the nation’s top drug policy reform organizations was unanimously positive. “Americans for Safe Access” (ASA) said this was “exciting news.” National NORML’s Paul Armentano proclaimed “this decision reflects today’s changing cultural landscape.” Steve Hawkins,”Marijuana Policy Project” (MPP) leader declared: “Amazon’s public commitment to end this harmful practice is the latest example of the private sector realizing the American people support full legalization.” Kassandra Fredrique from the “Drug Policy Alliance” proclaimed Amazon’s action was a “huge step forward” and urged other companies to “take note.”
When the news broke, marijuana stocks such as Canopy, Tillray, and Sundial surged in value.
Ripple effects were felt almost immediately in Michigan.
On June 12th, a headline in the Detroit Free Press read: “GM struggles to hire hundreds of temps, union boss says drop drug tests.” The story described how Flint UAW Local 598 Shop Chairman Eric Welter and Fort Wayne Assembly union leader Rich LeTourneau demanded General Motors raise wages and drop drug tests for marijuana in order to fill a huge labor shortage. GM management spokesman Dan Flores refused to comment on the story except to say “that’s an issue being discussed internally.”
The Amazon bombshell however, was not met with a unanimous amen chorus.
Project SAM (Smart Alternatives to Marijuana), a virulently anti cannabis organization announced its dismay and surprise with the Amazon decision. SAM cited data from drug testing giant “Quest Diagnostics” purporting to show triple digit increases in workplace marijuana positivity in legalized states such as Nevada and Oregon. According to SAM, Amazon’s action will only make this alleged problem worse.
Alarm bells also sounded for some members of the cannabis community.
A column appeared in the June 2nd issue of the cannabis trade publication “Leafly‘’ entitled “Yes, Amazon will sell weed. Stop worrying and start acting” Senior Editor Bruce Barcot articulated some of the darkest fears among marijuana business persons and activists longing for a decentralized, democratic playing field in the post legalization world to come.
Mr. Barcot went on to describe Amazon as a political powerhouse. In the post legalization world most experts believe cannabis will be strictly regulated like alcohol, on a state by state basis. “That’s where the industry’s national and state frameworks will be constructed. Amazon’s lobbyists are already shaking hands and forming relationships.”
In social media postings in Michigan, some cannabis activists expressed their contempt for Amazon as a company. In so many words they described the move as a cynical ploy to take over the marijuana business. Others declared the company to be a greedy, abusive employer interested only in working its employees to death in order to squeeze every dime of profit they can. Another criticized the move as flawed, because it still does drug and alcohol testing in the event of accidents on the premises and complies with Department of Transportation directives to drug test all drivers.
Are fears that the “Death Star” (Amazon’s nickname in certain Wall Street analyst circles) will prevail and destroy marijuana businesses like it did all the mom and pop bookstores that used to be around justified?
Mr. Barcot’s answer is NO. He cited the little known fact that Amazon has been in the liquor distribution business since 2017 when it bought out “Whole Foods.” When that happened, the headline in the liquor industry trade publication “Drync” screamed: “Did Amazon just kill liquor retail as we know it?” Drync went on to say “overnight, Amazon gained more than 330 new liquor licenses across 41 US states. This will undoubtedly shift the way consumers acquire and engage with beverage alcohol.” Drync’s prognosis never came true. Amazon simply did not have the political muscle to beat the liquor industry at its own game in the halls of the various state legislatures across the USA.
I vividly remember the day several months ago, when my shares in pharmacy giant CVS crashed, as news hit the financial wires saying Amazon was getting into the pharmacy mail order business.
However, the pain was only temporary. CVS and other pharmacy stocks rebounded to even higher levels when it became obvious that consumers still prefer to go to an actual pharmacy and deal with real people to get their meds and other ancillary sundries.
Reflecting upon the doomed mom and pop bookstores destroyed by Amazon, Mr. Barcot was pithy in his assessment of the situation. ”When people think of Amazon crushing an industry, they commonly think of Uncle Jeff putting America’s bookstores out of business. But bookstores are the wrong analogy. Cheap pre-rolls and top shelf eighths are not best sellers or itty bitty book lights.”
