The ballot initiative, Measure 119, requires cannabis businesses in Oregon to sign “labor peace agreements” with a “bona fide labor organization” that’s representing, or trying to represent, their employees. At a minimum, that agreement requires management to be neutral and not interfere with organizing efforts.
If a business fails to comply, it could face fines and have its license revoked.
Miles Eshaia, with the regional United Food and Commercial Workers Local 555 union, says the agreements are necessary for employees to better fight for safer workplace conditions, like being supplied protective gear when using chemicals.
“Workers should have the freedom to unionize their workplaces,” said Eshaia. “But because cannabis is still federally illegal, there's enough confusion for anti-union employers to skirt the law and retaliate against attempted unionization efforts.”
He says the federal National Labor Relations Act, which protects employee's right to organize, carves out agricultural workers. But many cannabis companies are vertically integrated, meaning that someone who works on a farm also works in retail.
“That's where a lot of the confusion comes into place and where employers who are trying to fight a unionization effort will misclassify workers or attempt to confuse workers. And we're just trying to avoid all that,” said Eshaia.
He said UFCW 555 has been close to unionizing cannabis businesses in Oregon, but so far has not been successful.
“We've taken multiple runs at multiple locations,” said Eshaia.
Last year, the union supported a legislative bill similar to Measure 119. When that law didn’t pass, UFCW 555 funded a failed recall effort against Democratic State Representative Paul Holvey of Euegene who the union blamed for killing the legislation.
Similar “labor peace agreement” laws have been passed in New Jersey, New York and California. Although San Diego cannabis shop Ctrl Alt Destroy sued the state this year, claiming that requirement was unconstitutional by violating freedom of speech protections.
The International Brotherhood of Teamsters union has also criticized the implementation of California’s law, alleging businesses have signed agreements with “sham” unions that have no intention of organizing.
Meanwhile, experts warn some of Oregon’s cannabis businesses may not survive unionization. Economist Beau Whitney with Whitney Economics, which studies the cannabis industry, said the marijuana market is already struggling with low prices and profits.
“You've got this issue where there's really not a whole lot of options to absorb increases in costs,” said Beau. “And as a result of that, it's going to be a challenge to absorb the costs associated with the unionization.”
He said his group doesn’t take a position on Measure 119. But they recently did an analysis on potential investment opportunities in the Oregon marijuana industry.
“There is none. Zero,” said Beau.
He said before legalization on the federal level or a new regulatory framework in Oregon, increasing labor costs could further hurt the floundering market.
