Why would the entire workplace suddenly decide to start using drugs? Its not like employers can't detect stoned employees.
The story there is that the man that managed Djibouti's port forbid the usage of Khat for his workers and couldn't walk around without his body guards.
The United States State department reports "Penalties for possessing, using, or trafficking in illegal drugs in Djibouti are severe, and convicted offenders can expect long jail sentences and heavy fines."
http://travel.state.gov/travel/cis_pa_tw/cis/cis_1101.html
So severe penalties for drug use don't seem to work in your example. And they don't work in prisons in the US, either drug use runs wild and the state has complete control over the lives of the inhabitants.
Let people make their own decisions.