Hashish Regulation Group
California hashish enterprise licenses are on the road – a minimum of a dozen of them – after an investigation by state’s Agricultural Labor Relations Board (ALRB) determined the labor union they signed with isn’t a “bona fide” labor union. 
As our Los Angeles cannabis business lawyers can clarify, when the state rolled out laws for cannabis license necessities, a type of was the mandate to signal a labor peace settlement with a a bona fide labor union.
For individuals who might not be aware of labor peace agreements, they’re contractual agreements between employers and labor unions. The union agrees it received’t picket, cease work, boycott, or intervene with employer operations, and in alternate, the employer guarantees to not attempt to intervene with the union’s capacity to arrange the employees. The aim is to put the muse of a relationship of collaboration between staff and their employers, with the last word objective of boosting stability, security, productiveness, and firm longevity. It might probably additionally assist decrease the potential for worker abuse and/or exploitation – which was a significant concern of state regulators once they had been drafting hashish firm guidelines.
So what occurred right here?
Based on the ALRB panel findings, quite a few California marijuana companies signed off with a company dubbed the Skilled Technical Union Native 33, or ProTech for brief. Downside was it seems to have been a “labor union” in identify solely. It had few members, made no intent to arrange staff, and failed to answer fundamental inquiries from the ALRB about its membership and organizational construction.
That is a part of a sample we’ve seen crop up in different areas of the nation as properly. However why would these corporations take the chance of dropping their license by signing off with a sketchy labor union? Regulators suspect the motivation for these corporations was to sidestep employee safety legal guidelines and decrease labor prices by signing off with a “labor union” that wasn’t truly a labor union.
As for what constitutes a “bona fide labor union,” the ALRB broadly outlined it as one which reveals honest good religion with regard to organizing staff, representing them in collective bargaining negotiations, and has the capability and sources to successfully perform these duties.
The truth that the union on this case highlight didn’t reply to fundamental questions from the board led to the panel’s conclusion of impropriety. For that purpose, the board dominated that any hashish firm labor union offers inked with ProTech had been instantly void. As a result of a labor union deal is required for state-issued hashish enterprise licenses, all of these corporations are susceptible to having their license revoked – except they scramble to log out on new offers with acknowledged labor unions.
This complete investigation kicked off after quite a few different California hashish labor unions filed complaints with the ALRB. A type of representatives expressed approval of the board’s ruling, saying that merely signing a deal isn’t sufficient to make sure worker protections. There must be management guiding worker group and ample illustration to advocate for vital office rights.
Hashish labor unions throughout the nation have been displaying these days that they aren’t afraid to drive a tough discount – together with exercising their energy to strike. As an example, workers of a handful of retail dispensary workers in Chicago had been led in a two-week strike to compel firm house owners to ensure employee raises.
One the flip facet, many hashish companies are grappling with tightening revenue margins, rising product prices, stagnation on federal reform guarantees, and heightened investor stress. However staff say these difficulties aren’t an excuse to pay them a less-than-fair (or livable) wage.
Whether or not you’re a hashish firm with considerations in regards to the labor union with which you might be contracted OR an worker who finds your organization’s present labor union to be considerably missing, we may also help.
The Los Angeles CANNABIS LAW Group represents growers, dispensaries, ancillary corporations, sufferers, medical doctors and people dealing with marijuana costs. Name us at 714-937-2050.
Further Sources:
Agricultural Labor Relations Board Makes First Finding of NonBona Fide Labor Organization for Cannabis Labor Peace, July 13, 2023, Agricultural Labor Relations Board
Extra Weblog Entries:
Los Angeles Cannabis B2B Companies Must Establish Clear Pay Default Policies, June 16, 2023, Los Angeles Hashish Enterprise Lawyer Weblog
