Atlas Global cuts 50 cannabis jobs in Alberta amid slump

Atlas Global is cutting 50 employees and shutting down a facility in Alberta amid a cannabis industry slump.

The facility is located in Gunn, Alberta, which is around 60 kilometres northwest of Edmonton. It was responsible for the growth and packaging of cannabis. Atlas Global is shifting its packaging operations to Chatham, Ontario.

“Ceasing operations in Gunn… is an important step towards executing on our objective of reducing costs, streamlining operations and increasing margins,” said Atlas Global CEO Bernie Yeung in a recent news release.

Employees surprised

Numerous former Atlas Global workers told CBC News that they were surprised about the layoffs. Those affected by the plant closure were denied access to the facility and told to make an appointment to gather their belongings.

Industry slump continues

The job cuts at Atlas Global reflect a continuing trend of cost reductions and layoffs across Canada’s cannabis sector.

• Calgary-based SNDL announced in February that it was slashing 85 jobs from its Olds facility.
• Aurora Cannabis fired 12% of its workforce and closed a location in Edmonton.
• Canopy Growth slashed 800 jobs and closed several facilities.

The cannabis industry in Alberta is extremely competitive. There are over 750 licensed marijuana retailers in the province, which makes it one of the biggest numbers of cannabis stores per capita in the country.

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• Canopy Growth closing several facilities, fires over 800 workers

Rights when facilities are closed or consolidated

The closure of an office or facility can impact employees in a few different ways:

• Termination with full severance pay: If an employee loses their job because their workplace is closed, they must receive a full severance package from the employer. Proper compensation can be as much as 24 months’ pay depending on various factors, but can also consist of working notice.
• Relocation to a new workplace: An employer may decide to move employees to a new work location. This is something a company can’t do if the change makes the commute longer or more difficult for an employee. A worker can treat the change as a termination, and get severance pay through a constructive dismissal claim.
• New job or duties: A company may give some employees new roles, duties or reduced pay if their original job is impacted by closures. It is illegal for an employer to make significant changes to someone’s job. This can also result in a constructive dismissal and proper compensation.

If you are an employee at Atlas Global, and your job is affected by these latest layoffs or changes, contact an employment lawyer at Samfiru Tumarkin LLP immediately to find out what your options are.

Termination agreements for Atlas Global employees

Non-unionized employees of all types at Atlas Global are owed full severance pay when they lose their jobs due to downsizing, closures or restructuring.

This includes individuals working full-time, part-time, or hourly in Alberta, B.C. and Ontario.

Severance can be as much as 24 months’ pay, depending on a number of factors.

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• Severance packages in mass layoffs
• Severance pay for cannabis industry employees
• Rights to severance for provincially regulated employees

WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.

Before you accept any severance offer, have an experienced employment lawyer at Samfiru Tumarkin LLP review it and your employment contract.

We can tell you if what you have been provided is fair and how to get proper compensation if it falls short of what you are actually owed.

If you aren’t given the full amount, which happens often, you have been wrongfully dismissed and are entitled to compensation.